Survey of the leisure industry
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Survey of the leisure industry

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Survey performed by Explore Research for Travel and Tourism: ...

Survey performed by Explore Research for Travel and Tourism:
How the industry feels it performed this year compared with last
The industry’s expectations for next year
Industry perceptions of consumer demand and trends

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Survey of the leisure industry Survey of the leisure industry Presentation Transcript

  • Survey of the leisure travel industry
  • Aims of the survey To find out How the industry feels it performed this year compared with last The industry’s expectations for next year Industry perceptions of consumer demand and trends
  • Method We conducted a survey of senior individuals working in the leisure travel industry We used lists of subscribers to e-tid Individuals were invited to take part by email In total, 345 online interviews were completed
  • Who took part in the survey?
  • Leisure travel sectors worked in Tour Operator (Outbound) 44% Hotels / Accommodation 21% Agent - Retail 18% Agent - OTA 12% Aviation 10% Cruise / Ferry / Rail Tour Operator (Domestic) 9% 6% Car Rental 4% Agent - Other 4% Coach 3% Q: Which sector(s) of leisure travel do you principally work in? Base size: All respondents (345) Note: those working in none of the above sectors were excluded from the survey
  • Principal activity / role within organisation MD/CEO/President 29% Sales and/or Marketing 27% Commercial/Product 17% Purchasing/Contracting 6% Finance/Accounting 5% Operations 5% Systems/ Technology 5% Reservations/Call Centre Other 1% 6% Q: What is your principal activity / role within your organisation? Base size: All respondents (345)
  • Size of business 0 (sole trader) 2% 1-4 6% 5-9 6% 10 - 19 6% 20 - 49 6% 50 - 99 100 - 249 10% 12% 250+ Q: About how many people does your business employ? Base size: All respondents (345) 52%
  • Where based for work Greater London South East North West Midlands East Anglia Yorkshire & Humberside South West Scotland Northern Ireland Wales North East Outside UK (Europe) Outside UK (Rest of the World) 31% 25% 6% 6% 5% 4% 3% 2% 1% 1% 0% 12% 5% Q: Which area of the UK are you principally based in for your work? Base size: All respondents (345)
  • Types of leisure travel operated or sold Resort/Beach 53% Short Haul 48% Long Haul 48% Short Breaks/City Breaks 37% Cruise 29% Activity inc Ski 26% Domestic 20% Coach Tours 15% Other None 13% 1% Q: Which type(s) of leisure travel does your business principally operate or sell? Base size: All respondents (345)
  • Who took part? - summary  Close of half of respondents were outbound tour operators. Hotels and other accommodation providers and retail agents were the next largest sectors.  A large proportion of respondents were senior within their organisations; almost a third were MD/CEO/President.  Over half of respondents worked for large organisations employing over 250 people.  Over half of respondents operated or sold resort / beach holidays. Around half sold / operated long haul and short haul holidays, whilst on 20% were focussed on domestic travel.
  • Consumer demand during 2012/13
  • Change in consumer demand since last year Short haul (166) 7% 57% 26% 10%1% Short/city breaks (129) 7% 56% 26% 8% 4% 24% 12% 1% Long haul (165) Domestic (68) Cruise (101) 10% 9% 51% 24% 15%1% 10% 49% 26% 14% 2% Resort / beach (182) 5% Activity inc ski (90) 2% Coach tours (52) 4% Greatly increased Increased 53% No change 51% 48% 38% Decreased 34% 33% 40% Greatly decreased Q: How has consumer demand changed since last year for each of these types of holidays? Base size: () those who operate /sell this type of travel 10% 1% 8% 8% 15% 2% Don’t know
  • What affected consumer demand? Weather in the UK Consumer spending confidence 41% 30% 30% 29% Destination costs 21% 51% Destination safety 21% 48% Holiday travel costs 18% Greatly increased / increased demand Decreased / greatly decreased demand 48% No change Don't know Q: How has consumer demand been affected by each of the following? Base size: all respondents (345) 27% 41% 26% 26% 33% 2% 1% 2% 4% 1%
  • Perceived consumer trends Spend on holiday purchase Number of holidays taken Duration of holidays 10% More/increase/longer No change 30% 30% 18% 1% 31% 50% 39% Less/decrease/shorter 38% 49% 2% 2% Don't know Q1: Would you say that – compared with the previous year – consumers are spending more, less or the same on the purchase of holidays? Q2: How would you say that the duration of holidays has changed over the past 3 years? Q3: Over the past 3 years, how would you say that the number of holidays consumers take has changed? Base size: all respondents (345)
  • Consumer demand – summary  The industry is reporting increases in demand for all types of holiday included in the survey, slightly lower for activity (including ski) holidays and coach tours.  Very few reported decreases, although it should be noted that no questions were asked about changes in company offer (i.e. could have ceased to offer some types of holiday due to decreasing demand)  The weather in the UK was perceived to be most likely to have had a positive effect on consumer demand of all holiday types.  Opinion on consumer confidence in spending was polarised; it was believed to have had the greatest negative effect on demand but many thought it had had a positive effect.  The industry thinks that there has been an overall increase in the amount consumers spend on holiday purchase but that they tend to take fewer holidays and holidays of a shorter duration. This could indicate increases in luxury or all inclusive holidays for example.
  • Industry predictions for 2013/14
  • Advance bookings for 2013/14 All respondents (345) 9% 51% 23% 1% 12% 3% Most positive sector Tour operator - outbound (152) 12% 54% 2% 18% 12% 2% Least positive sector Agent - retail (61) 7% Much stronger Stronger The same 44% Weaker 34% 13% 2% Much weaker Don't know Q: How are advance bookings in your business for next year compared with this time last year? Base size: ()
  • Expectations for 2013/14 compared with 2012/13 Own business 9% UK leisure travel industry 3% as a whole Much better Better No change 4% 13% 1% 73% 2% 19% 3% 73% Worse Much worse Q: Overall how well do you expect your own business [/ the UK leisure travel industry as w hole] to perform in 2013/14 compare d with 2012/13? Base size: 345 all respondents Don’t know
  • Predicted change in consumer demand by type of holiday Cruise (101) 5% 57% 32% 5%1% Long haul (165) 7% 54% 33% 5% 1% Activity inc ski (90) 3% 56% Short/city breaks (129) 3% 55% Short haul (166) 2% Resort / beach (182) 1% Coach tours (52) Domestic (68) Greatly increase Increase 28% 9% 4% 36% 4%2% 54% 40% 4% 1% 55% 40% 4% 1% 46% 34% No change Decrease 13% 2% 54% 38% 10%1% Greatly decrease Q: Please indicate whether you think consumer demand will increase, decrease or stay the same in 2013/14 compared with the current trading year for each of your business areas shown below Base size: () those who operate /sell this type of holiday / travel Don’t know
  • Compare next year’s predicted growth with last year 59% Cruise (101) 62% 63% 61% Long haul (165) 50% Activity inc ski (90) Short/city breaks (129) 59% 58% Short haul (166) 64% 56% Resort / beach (182) 56% 56% Coach tours (52) Domestic (68) 38% 42% 34% % experienced an increase between last year and 2012/13 % expecting an increase between 2012/13 and 2013/14 Base size: () those who operate /sell this type of holiday / travel 63% 60%
  • Industry predictions - summary  Sixty per cent of respondents said that their advance bookings were stronger than they were at this time last year, compared with only 13% who said they were weaker.  82% said that they expected their own business to perform better in 2013/14 than it has this year, slightly more than those who thought the industry as a whole would perform better (76%).  Most holiday types are expected to continue to grow at a rate consistent with the previous year. Exceptions were:  Activity holidays (including ski) which are expected to grow faster than the previous year  Short haul, coach tours and domestic holidays are expected to grow less than they did the previous year, especially domestic holidays (presumably linked to the good weather in the UK this summer)
  • What else does the future hold?
  • Predicted trends in the industry Bookings made on mobile… 18% Online packaged bookings 6% Overall booking numbers Extras purchased at booking Duration of holidays booked Bookings through retail agents 17% Increase No change 6%1% 27% 57% 50% 5%3% 30% 12%4% 41% 37% 10%1% 45% 16% Greatly increase 27% 48% 1% 9% 3% 66% All inclusive holidays 7% Consumer holiday spend 19% 63% 1% Dynamic packaging 4% 10% 3% 1% 67% 12% 5% 61% 31% 21% 1% 50% Decrease / greatly decrease Q: Do you think each of the following will increase, decrease or stay the same in the next 12 months across the whole industry? Base size: all respondents (345) 3% Don’t know
  • Predictions by sector Sector Tour operators - outbound What’s hot ?  Bookings made through mobile devices  Online packaged bookings  Consumer holiday spend Hotels / accommodation Agent - retail  Dynamic packaging  Consumer holiday spend  Bookings through retail agents Aviation/Cruise/Ferry/Rail  All inclusive holidays What’s not ?  Dynamic packaging  Online packaged bookings  Consumer holiday spend  Extras purchased at time of booking  Bookings made through mobile devices  Online packaged bookings  Overall booking numbers  Extras purchased at time of booking  Overall booking numbers  Dynamic packaging  Consumer holiday spend  Bookings through retail agents
  • The future of retail agents
  • Predictions for bookings through retail agents by sector Total (345) 31% 17% 3% 50% Principal sector Aviation/Cruise/Ferry/Rail (64) 5% Agent - OTA (42) 12% Agent - Other (14) 14% Others (37) 33% 14% Tour Operator - Outbound (152) Hotels / Accommodation (72) Agent - Retail (61) Increase 63% 26% 60% 57% 29% 24% 18% 54% 30% 15% 38% 3% 36% 33% Decrease 8% 49% 47% No change 2% 30% Don't know Q: Do you think bookings through retail agents will increase, decrease or stay the same over the next 12 months across the whole industry? Base size: () those who work principally in this sector 1%
  • Retail agents - summary  Overall, more respondents felt that bookings through retail agents are likely to decline over the next 12 months than they are to increase.  This was felt particularly by aviation/ferry/cruise/rail companies, of which only 3% felt these bookings are set to increase.  OTA and ‘other’ agents were also pessimistic about retail agents.  Retail agents themselves were more positive; fewser than a third believed their bookings would decline.
  • Government policy
  • Attitudes towards APD and financial protection …abolish APD ...ensure that all holidays sold in the UK are financially protected Strongly agree Agree 37% 33% 45% Neither / nor Disagree 4% 37% 9% 6% 1% 2% Strongly disagree Don’t know Q: Do you agree, disagree or neither that the Government should… Base size: 345 all respondents 18% 6% 4%
  • Government policy - summary  The majority of respondents (70%) agreed that APD should be abolished, of whom 37% strongly agreed. This was highest amongst those selling or operating cruises or long haul travel (48% and 44% respectively) and lowest amongst hotels / other accommodation (28%).  There was even stronger agreement (82%) that all holidays sold in the UK should be financially protected. Almost half (45%) strongly agreed, this ranging from 56% of retail agents and 52% of tour operators, to 36% of hotels and 33% of aviation/cruise/ferry rail companies.
  • Who’s happy and who’s not?
  • How happy we are working in the industry (1) All respondents (345) 55% 38% Principal sector 56% Hotels / Accommodation (72) Aviation/Cruise/Ferry/Rail (64) 59% Agent - Other (14) 71% Tour Operator - Outbound (152) 53% Agent - OTA (42) 67% Others (37) 57% Agent - Retail (61) 48% Very happy Q: How happy are you working in the travel industry? Base size: () those who operate /sell this type of travel Happy 44% 39% 21% 39% 24% 30% 36%
  • How happy we are working in the industry (2) Principal activity / role MD/CEO/President (101) Others (244) 31% 65% 50% 41% 54% 37% Size of company 0-49 employees (90) 71% 50-249 employees (76) 250+ employees (179) 48% Very happy Q: How happy are you working in the travel industry? Base size: () 25% 44% Happy
  • Who’s happy? - summary  An overwhelming majority (93%) of respondents said that they were happy or very happy working in the leisure travel industry.  Those happiest were those in the hotel / other accommodation sector (100% happy!) and retail agents the least happy (although still 84% happy!)  The bosses - MDs, CEOs, Presidents - were slightly happier (96%) than the rest of us (still 91% happy though!)
  • Contact us Katie Bryan-Brown Head of explore research T: 0207 871 5550 M: 07743 829 505 E: katie@exploreresearch.co.uk W: www.exploreresearch.co.uk