Travel in the United Kingdom

Looming Brexit offers challenges and opportunities

The UK voted to exit the EU in mid-2016, with this ushering in a time of economic and political uncertainty. This is impacting willingness to spend for many consumers and businesses, while also causing uncertainty in areas such as open skies agreements. However, Brexit also offers opportunities for UK travel. A weak pound sterling is attracting many as the UK becomes more affordable and boosting domestic travel. Many are also keen to visit before Brexit is concluded due to concerns over free movement.

Smartphones soar in online travel

Smartphones are driving strong growth in mobile travel sales, with possession rates high in the country and consumers increasingly comfortable shopping via these devices. Offering a mobile-optimised website and easy-use app is thus crucial for leading players. Ease of use and speed of booking are important to consumers in addition to perennial concerns over value-for-money. A growing number are using multiple devices when booking, with offering a seamless and personalised multi-device service thus increasingly important.

Distinctions blur between low cost carriers and scheduled airlines

The distinctions between low cost carriers and scheduled airlines are increasingly blurred as leading players fight for customers and fuel costs diminish. Low cost carriers such as Ryanair are improving customer service and comfort and also venturing into long-haul routes. Conversely, scheduled airline British Airways began to charge for in-flight food and drink on short-haul flights in 2017 and also competed more aggressively via price promotions.

Personalisation and rewards in focus for intermediaries

There is a growing focus on personalisation among intermediaries, particularly online travel agencies. Booking.com is seeing a strong performance thanks to its effective data analytics and personalisation, launching Passion Search to offer tailored searches based on interests. Expedia is seeking to boost loyalty via a new rewards scheme launched in 2017, offering more attractive rewards for higher-spending customers.

Economic uncertainty to hinder growth in forecast period

Economic uncertainty will continue to hinder growth, with many businesses and leisure travellers increasingly price-sensitive and price competition intensifying. The impact of Brexit on free movement and open skies agreements is also a concern. There remains scope for growth, however, with inbound and outbound trip volume set to rise. The UK will remain attractive due to its diverse offer and strong heritage, while many UK consumers will continue to prioritise travel spending in their household budgets.

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