The package holiday market in the UK has experienced resurgence despite challenges to consumer confidence from events like terrorist attacks. Terrorism can swiftly impact tourism to destinations like Tunisia and Turkey, where visitor numbers dropped 25% and 10% respectively after attacks. However, the travel and tourism sector is resilient overall as travelers tend to change destinations temporarily but continue traveling. Package holidays provide consumers with certainty of arrangements being taken care of and value from tour operator discounts, making them appealing especially for younger and older age groups and families seeking reassurance during uncertain economic and political times.

1. Package Holiday Trends

2. Over the last decade, the UK package holiday market has experienced a
resurgence despite challenges affecting consumer confidence in
overseas travel.

3. Impact of terror attacks on demand for
package holidays in Tunisia.
Construct a supply and demand diagram showing what happened to
the demand for package holidays in Tunisia following UK government
advice not to travel to the country.

4. The immediate effect of terrorism on a destination’s travel industry can
be swift and painful.
Visitor numbers to Tunisia fell by 25 per cent to 5.4 million in 2015, and
revenue from tourists dropped by 35 per cent to $1.1 billion.
Mass unemployment ensued as closures ravaged the resorts.
Turkey, which has suffered series of high-profile bombings, has seen its
tourism drop by 10 per cent.
Would you take a package holiday to Tunisia or Turkey?

6. Travel and tourism is a very resilient sector.
Travellers change destinations for a while, but they do not tend to stop
travelling as a whole.
The UK government no longer advise against travel to Tunisia.
Extra security in airports, the city centre and around tourist sites may
reassure holiday makers.

7. Back to package holidays:
Within our current economic and political climate, as well as a fiercely-
competitive and increasingly fragmented travel market, package
holidays provide certainty and value to consumers.
Why certainty?
What will be certain for a package holiday maker?
Why value?
Why might a package holiday be better value for a holiday maker?

8. Certainty:
The current terror risk means consumers want the reassurance of being
looked after in case something goes wrong.
And in the present economic climate, there’s more awareness about
financial protection against a corporate failure.

9. Value:
Economies of scale mean tour operators are more likely to secure the
bigger discounts, which is important at a time of constrained
household budgets.
This trend is likely to continue as currency volatility following the Brexit
vote encourages more families to seek the certainty of all-inclusive
holidays.

10. Who buys a package holiday?
Over half of all 18-24 year olds (55%) booked a package holiday.
Why do you think this is the case?
69% gave “best value option for the price” as a reason for doing so.
Almost two thirds (63%) of holidaymakers aged 65 and over chose a
package holiday,
Why do you think this is the case?
The main reason was to have all their travel arrangements taken care
of.

12. The most affluent households, classified as social grade A, are also
being tempted by the wider range and diversity of holidays on offer,
with 62% booking a package holiday in 2016, up from 23% in 2015.

13. https://www.youtube.com/watch?v=wWPeG1H4YB8

15. With the rise and subsequent uptake of technology, search and social
media, consumers can access even more options than ever before,
meaning many experience information overload when researching
ideas.
Consumers in 2018 also want to feel reassured in their decision-making
about their holiday.
A 2017 Google study showed 55% of holidaymakers feel they have to
check too many sources of information before making a confident
decision.

16. The UK holiday market has seen the rise and increasing importance of
travel influencers and bloggers, such as The Londoner’s Rosie Thomas,
or Carrie Santana da Silva of Wish Wish Wish.
Customer expectations will continue to rise in 2018 as we demand
more from our travel experiences.

17. ‘Mid haul or long haul’?

18. Europe’s rising star
Having fast risen to prominence thanks to its picturesque film set
locations, which act as the backdrop for Game of Thrones, Croatia tops
the list as the most attractive short-haul destination to holiday to in
2018.
This is especially true for younger travellers aged 18-24, who were most
likely to choose Croatia.

20. Beach holiday or city break?