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

1. Survey of the leisure travel industry

2. 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

3. 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

4. Who took part in the survey?

5. 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

6. 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)

7. 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%

8. 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)

9. 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)

10. 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.

11. Consumer demand during
2012/13

12. 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

13. 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%

14. 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)

15. 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.

16. Industry predictions for 2013/14

17. 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: ()

18. 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

19. 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

20. 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%

21. 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)

22. What else does the future hold?

23. 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

24. 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

25. The future of retail agents

26. 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%

27. 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.

28. Government policy

29. 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%

30. 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.

31. Who’s happy and who’s not?

32. 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%

33. 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

34. 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!)

35. 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