Holidays and Leisure Habits 2014 - Webloyalty research

January 2014 Prepared for Webloyalty by Conlumino

Holiday and leisure habits 2014 consumer plans

2 Prepared for Webloyalty by Conlumino January 2014

Holiday and leisure habits

2014 consumer plans

This research has been commissioned by Webloyalty to provide insights into holiday and travel plans across the coming year. Webloyalty is a leading reward programme provider working with major online retailers to help them build stronger, more profitable relationships with their customers. Through our membership programmes, such as Complete Savings and Shopper Discounts & Rewards, we help our online retail partners’ customers save hundreds of pounds a year while providing the partner with an additional revenue stream. As well as incentivising customers to make repeat purchases at the partner’s website, they can also earn cashback and get great deals on everything from fashion to electronics to homeware at hundreds of top online stores. Webloyalty was established in the UK in 2007 and has since expanded into France, Germany, Spain, Italy, Ireland, Brazil and the Netherlands.

Webloyalty 19 - 21 Great Portland Street London W1W 8QB United Kingdom T. 020 7291 8720 F. 020 7291 8777 E. [email protected] W. www.webloyalty.co.uk

Foreword About this research



2014 consumer plans

•  Last year the majority of people, some 68.3%, took some form of holiday or break. This year a very similar number, 68.1%, plan to do the same.

•  While the numbers are similar, the type of holiday being planned for this year shows some change on 2013. Most notably, the percentage taking holidays in the UK (both day trips and staycation holidays) are down on 2013 and the percentage taking beach trips and city breaks abroad are up.

•  If the above is a reflection of a better economic climate, then the spending prospects for 2014 also point to a more optimistic outlook. Indeed, the vast majority of people (84.8%) intend to spend either the same or more on holidays as they did in 2013. Relatively few people (15.1%) say that they will spend less.

•  Although the economic outlook might be improving, this does not necessarily translate into good news for the full-fare airlines. Only 13% agree that they will fly more with airlines like BA over the next year and only slightly more (17%) agree that they will spend a little more on air travel to have a nicer experience. The truth is that large numbers (47%) agree that air travel is a means to an end and, as such, the object should be to save as much money as possible.

•  Price sensitivity is also reflected in the considerations people have when booking hotels and flights. In both cases, price is the number one consideration for consumers. However, with hotels it is significant that consumers place greater weight on reviews from other customers than the official star rating of the hotel. This is a sign that, to some degree, power has shifted from the industry to the consumer when it comes to judging standards and value for money.

Summary Key findings from the research



2014 consumer plans

Holidays Taken and planned

•  The majority of people (68.3%) took some form of holiday or break in 2013. The most popular were day trips away in the UK, taken by just under a quarter of people. A slightly lower number took beach holidays.

•  This year 68.1% of people are planning to take a holiday. Notably, the percentage taking holidays in the UK (both day trips and staycation holidays) are down on 2013 and the percentage taking beach trips and city breaks abroad are up.

24.2 24.5

15.9

19.8

6.7

4.1 2.6

1.4 2.1 1.0

26.2

20.3

17.2 16.9

6.3

3.8 2.7 1.9 1.8 1.5

Beach holiday abroad

Day trips in the UK

City break abroad

Staycation in the UK

Other active holiday abroad

Coach trip in the UK

Spa break in the UK

Skiing holiday abroad

Coach trip abroad

Spa break abroad

2013

2014

Holidays people did undertake in 2013 and are planning to undertake in 2014 All figures are percentages



2014 consumer plans

Holidays Spending on holidays

•  The vast majority of people (84.8%) intend to spend either the same or more on holidays as they did in 2013. Relatively few people (15.1%) say that they will spend less.

•  On average, people plan to spend £1,927 on all aspects of holidays across the course of 2014.

7.7 9.0

18.4

49.7

9.4

4.2 1.5

Significantly more A lot more A bit more About the same A bit less A lot less Significantly less

How will holiday spending in 2014 compare to holiday spending in 2013 All figures are percentages

Net scores:

More: 35.1% Less: 15.1%



2014 consumer plans

Holidays Spending on holidays by item •  Across all holiday items, the majority of people intend to spend more or the same as

they did last year.

•  Flights/travel and accommodation are the items on which most people say they intend to spend more in 2014 – 27.3% and 21.6% respectively. Clothing, gifts and souvenirs are the items on which the fewest people - less than 1 in 10 - say they will spend more.

27.3 21.6 15.5 12.2 12.1 10.9 8.2 8.1 8.0

57.8 63.9 66.5 67.4 69.3

62.5 68.2 72.9 66.9

14.9 14.5 18.0 20.3 18.6 26.6 23.6 19.0 25.1

Flights and travel Accommodation Meals out Car hire Drinks out Health and spa treatments

New clothes Gifts Souvenirs

Less

Same

More

Spending plans on various holiday items (2014 compared to 2013) All figures are percentages



2014 consumer plans

Holidays Preferred holidays

•  A small majority of people prefer to take several shorter breaks throughout the year compared to one long two week break in the summer.

Out of the two options, how would you prefer to take your holidays? All figures are percentages

One long two week break in the summer

44.2% Shorter breaks spread

throughout the year

55.8%



2014 consumer plans

Holidays Holiday irritations •  Although the majority of holiday makers (52.1%) had no specific complaints about

their last trip, many did.

•  Among those who did have issues, the biggest complaint was about queues at the airport, followed by a lack of leg room on flights. Bad weather and hidden charges were also common complaints.

15.9 14.1

10.9 9.1

7.5 6.9 6.6 5.2 5.1 4.6

3.6 3.6 3.6 3.0 2.9 2.6 1.7 1.6

Which, if any, of the following did you find irritating on your last holiday? All figures are percentages



2014 consumer plans

Flights Views on flying

•  Although the economic outlook might be improving, this does not necessarily translate into good news for the full-fare airlines. Only 13% agree that they will fly more with airlines like BA over the next year and only slightly more (17%) agree that they will spend a little more on air travel to have a nicer experience.

•  The truth is that large numbers (47%) agree that air travel is a means to an end and, as such, the object should be to save as much money as possible.

16.3 17.5 12.0 3.2 3.0

30.5 32.8

25.6

13.7 10.4

40.7 38.7

41.7

49.9 53.4

5.6 5.9 10.0

17.9 15.2

6.9 5.1 10.7 15.3 18

Flying is a means to an end so I try to save as much money

as possible on flights

Flying with the budget airlines can be a false

economy as there are so many hidden charges

Ideally I would like to fly with an airline like BA but

normally fly with a budget airline to save money

Now that the economy is looking a little better I am

prepared to spend more on air travel to have a nicer

experience

I will fly more with airlines like BA over the next year

than I did last year

Strongly disagree

Disagree

Neutral

Agree

Strongly agree

Agreement and disagreement with various statements All figures are percentages

50.3% 46.8% 37.6% 13.4% 16.9%



2014 consumer plans

Flights What’s considered

•  When choosing an airline or flight, the most important consideration is price which was selected by many as one of the first things they would look at. This is followed by the location of the airport for both departure and destination.

•  The least important consideration is service standards, which came bottom of the consideration rankings.

When choosing an airline please rank the following considerations in order of importance. All figures are average rankings where 1 is the most important

1.1

1.9 2.4

3.3

4.1

5.1

6.7

Price Location of airport (destination and

departure)

Baggage allowance Amount of leg room Onboard entertainment options available

Quality of reviews from other customers

Service standards



2014 consumer plans

Hotels What’s considered

•  When choosing a hotel to stay in for holidays, price is the most important consideration and the thing most people would explore first. This is followed by the proximity of the hotel to attractions such as the beach.

•  It is notable that reviews from other customers are placed much higher up the batting order than the official star rating, which is bottom of the consideration table.

When choosing a hotel please rank the following considerations in order of importance. All figures are average rankings where 1 is the most important

1.2

1.9

2.9

4.3

5.3

5.9

6.8

Price Proximity to attractions such as beach

Quality of reviews from other customers

Decor of room Size of room Restaurants within the hotel

Star rating



2014 consumer plans

Holidays Dream holidays

•  If money was no object, just over a quarter of people would take a round the world trip. Just under a quarter would take a five star luxury hotel break. A cruise is the chosen dream holiday of just over 1 in 10, while a similar number would opt for a lodge in a remote or rural area.

25.9 23.9

12.2 10.8 10.3

4.1

1.0

11.7

A round the world trip A 5 star luxury hotel A luxury villa A cruise A lodge in a remote or rural area

An adventure or activity holiday

A luxury ski resort Other

Which of the following is your dream holiday? All figures are percentages



2014 consumer plans

Methodology

Consumer research in this report is based on a survey conducted with a UK nationally representative poll of consumers. Some 2,004 consumers were interviewed during December 2013. Unless otherwise stated, all sources of information are derived from Conlumino’s own research and should be referenced to Conlumino/Webloyalty.

Produced for Webloyalty by Conlumino 020 7291 8748

[email protected] / [email protected]

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Holidays and Leisure Habits 2014 - Webloyalty research