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New Landscape Report UK and IRELAND EXECUTIVE SUMMARY Factors Affecting Travel

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New Landscape Report UK and IRELAND EXECUTIVE SUMMARY Factors affecting travel The UK remains the 5th largest national economy Ireland is the fastest growing economy in Europe Forecast is that all UK adults will have been offered their first Covid-19 vaccine by the end of July 2021, with multiple vaccines now approved for use As of 28 February 2021, the total number vaccinated in the UK is 20,275,451 with over 800,000 of those reported as 2nd doses and as of February 27, 2021 Ireland has vaccinated 410,000 people The UK is expected to be free of ALL Covid-19 related restrictions by June 21, 2021 UK to US travel is currently suspended, however International travel for UK outbound is predicted to re-start post May 17, 2021. Details around US borders opening for the UK & Irish consumer is pending. The USA is not currently on the red list New UK quarantine measures were put in place on February 15, 2021. Including a compulsory 14-day quarantine period in a government approved accommodation for those arriving into the UK from a ‘Red list’ country, at a personal cost to the traveller of £1,750 per traveller Governments, airlines and industry bodies are discussing the implementation of “Vaccine Travel Passports” to enable passengers to travel more freely and prove their vaccinated status. The concept existed in previously for other diseases, however with the latest technology, these are expected to be more efficient and effective 11% of Britons are better off financially than at the beginning of the pandemic The majority of the UK population want to see marketing about life returning to normal and inspirational content rather than safety and wellness messages The USA has increased in public consciousness when it comes to people planning where they want to go, despite the ongoing cases in the USA. It ranks second behind Spain in terms of priority on where to go next, previously ranking third back in March. Source: BVA BDRC The USA has maintained a top 5 search status for holiday destinations throughout the pandemic according to search analytics from all key search engine providers, true testament considering no leisure travel has been possible for 12 months Travel & Tourism Marketing | Travel South USA 2 Overview 05 The UK & Irish Consumer 11 Travel Industry Landscape 33 Media Landscape 48 Social Media & Influencers The UK & Irish Consumer KEY TARGET DEMOGRAPHICS Key target demographics: Generation X 40-55yrs: The generation who wield high spending power as they enter the peak of their careers Baby boomers 56-74yrs: Economically influential generation, with large spending power The key mediums being used by consumers for advice and inspiration include travel agents and tour operators, government website, publications (digital and print), social media, TV, radio and films and the internet. Clear trends emerging for a post Covid-19 market include: Open Space and the Great Outdoors Milestone Life-Stage Celebration Trips The Rise of the RV Holiday Revenge Travel (in response to Covid-19) Culture, History and Heritage Slow Travel Multi-generational trips in self-catered Environmental Travel accommodation Regenerative Travel Soft Adventure Destinations with their own personality Road Trips Travel & Tourism Marketing | Travel South USA 5 KEY TARGET DEMOGRAPHICS cont… Travel & Tourism Marketing | Travel South USA 6 WHERE ARE CONSUMERS GOING FOR ADVICE AND INSPIRATION? Please see below the key mediums that consumers are using to make travel decisions: TOUR OPERATORS GOVERNMENT WEBSITE Trust is now more than ever being placed The Government travel advice website now with the travel agent plays a key roles in influencing the consumers Many operators have shone through during decision to travel the pandemic with the way that they have Whilst the UK and Irish consumer is dealt with clients existing bookings resilient, border restrictions and COVID safe Operators can control marketing to their travel is now a key decision factor databases to inspire and enquire SOCIAL MEDIA TV, RADIO AND FILMS Sites such as TripAdvisor along with social The power of film, television and radio in media platforms including Facebook and promoting destinations and stimulating Twitter, are now the most popular mediums tourism demand is an international for travel-related research phenomenon. So, these mediums usually The value associated with immediate and have more long-term impacts in tourism trustworthy opinion from other customers Film, television and radio can have impact on has meant that it has become common, tourist decision making upon their choice of especially amongst the younger generations, travel type and destination to conduct all or most travel research online With consumers now more than ever Most people now use social media and watching television and subscribing to travel sites for conducting some part of their various streaming avenues like Netflix, research Amazon Video and many others the Social Media sites allow prospective travellers influencing power is huge to view other people’s check-ins, photos and feedback Social media has also made travel more spontaneous due to ongoing exposure to posts about a travel destination. Travel & Tourism Marketing | Travel South USA 7 WHERE ARE CONSUMERS GOING FOR ADVICE AND INSPIRATION? cont… Please see below the key mediums that consumers are using to make travel decisions: INTERNET PRINT MEDIA ( ON & OFFLINE) With a lot more time on their hands the Whilst consumers have an abundance of tools consumer has started to change their to research their future plans, the inspiration patterns and spend more time dreaming and stage is crucial researching Travel supplements, travel sections in TripAdvisor revolutionized online travel newspapers and magazine articles are still research and has been the driving force a very popular source for the UK & Irish behind the rise of online travel reviews which consumer allow users to research a destination, hotel, Trustworthy sources and popular journalists resort, and other travel related services before are key to this stage they book The majority of UK and Irish Tour operators are reporting that their page dwell times and open rates on marketing emails have increased, therefore leading the consumer to various other website pages to research further Travel & Tourism Marketing | Travel South USA 8 WHAT VACATIONS WILL THE CONSUMER BE LOOKING FOR FROM 2021 – 2025 Tour Operators report that there are some very clear trends coming out of 2021 onwards, this is all backed up by the UK journalists when reporting back. Please see below the top trends being reported: Open Space and the Great Outdoors Road Trips The Rise of the RV Holiday Milestone Life-Stage Celebration Trips Culture History and Heritage Revenge Travel (in response to Covid-19) Multigenerational trips in self-catered Slow Travel accommodation Environmental / Regenerative Travel Soft Adventure Wanderlust magazine’s reader survey published November 2020. Wanderlust have been busy asking their readers what they feel about travel in these unprecedented and uncertain times. This is the fourth in a series of surveys and was timed to gauge reaction to the second UK lockdown. They wanted to know how the readers now feel about travel, and when and where will they be travelling. This survey was conducted from 1-3 November 2020 on the Wanderlust website and is based on 2,014 respondents. 61% of those surveyed are 55+, so a reasonably mature audience. 84% of respondents were from the UK and Ireland, the rest from the USA, Europe, Australia, and India. They were a mix of magazine subscribers and website users. Full survey results can be found here: https://www.wanderlust.co.uk/misc/reader-survey-november-2020/ Travel & Tourism Marketing | Travel South USA 9 WHAT VACATIONS WILL THE CONSUMER BE LOOKING FOR FROM 2021 – 2025 cont… Which types of trip will they be looking to do? Wildlife and nature holidays are dominating alongside, culture, history, and heritage trips. Many are looking for walking and trekking holidays, as well as not being put off by a city break. Self-drive road trips are increasing in popularity at 33% and tours incorporating various elements also show strongly at 31%. Cruise (expedition/adventure/river) is up by 1% to 14% and there is a trend towards camping and campervans at 16%. Travel & Tourism Marketing | Travel South USA 10 Travel Industry Landscape SUMMARY UK & Irish tour operators have worked tirelessly and adapted to ensure business survival throughout the pandemic UK & Irish tour operators have proactively taken the opportunity during extended lockdown phases to assess product coverage and develop strong programmes for 2021 and beyond Stand-alone hotel product within the Travel South region has increased by an average of +5.5% for January 2020 v January 2021. New self-drive, tailormade itineraries that include overnight stays within one or more Travel South states have increased by +6.1% for the same YOY period 20% of UK and Irish tour operators are currently selling ALL 12 Travel South states within their existing programmes. 44% are selling at least 9 of the 12 Travel South states Where Travel South states are not yet included within these programmes, there is a strong opportunity for product development with these operators to further increase coverage of the region 10 out of 12 Travel South states currently have product featured with over 50% of all UK and Irish tour operators The main segment of travellers driving the leisure travel market are the over 45s, making up more than half of holidaymakers. With the older generation being the first to receive vaccinations, their confidence is buoyed, and they are expected to drive demand as they feel protected, have disposable income, and want to travel imminently The UK & Irish consumer wants to travel, there is a huge pent-up demand, proven when travel corridors open, by the high number of bookings being made almost instantaneously.
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