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Travel Agents - UK - December 2013

Published By :

Mintel

Published Date : Dec 2013

Category :

Retail

No. of Pages : 153


As the advent of concept stores shifts the role of stores towards offering an inviting experience rather than just facilitating transactions, travel agents need to avoid declaring a given store a success or failure based on in-store sales. The maintenance of a loss-making, but high-footfall store should instead be viewed as a marketing cost, helping to build brand strength and awareness and boosting sales through other channels.
Table of Content

Introduction
Definition
Abbreviations

Executive Summary
The market
Holidays booked in-store down 13% over five years
Figure 1: Estimated number of holidays booked via travel agents, 2008-18
Travel agents have maintained their share of overseas holidays
Figure 2: Estimated number of overseas holidays booked via travel agents, 2008-18
The domestic segment has grown, but penetration remains low
Figure 3: Estimated number of domestic holidays booked via travel agents, 2008-18
Market factors
Draft Package Travel Directive leaves a lot of questions unanswered
Market spared high-profile failures
ABTA membership numbers have fallen, but branch office numbers are up
Mobile internet penetration hits half of UK adults
Market share
Thomas Cook has maintained its lead, despite store closures
Figure 4: Top 10 UK travel agents, by number of retail stores, including concessions and partner stores, November 2013
The consumer
Travel agent shops play a vital role, outside of just in-store sales
Figure 5: Travel agent use in the last two years, October 2013
Half of non-users think booking online is cheaper and quicker
Figure 6: Reasons for not booking through a travel agent shop, October 2013
A price matching service would appeal to a third of adults
Figure 7: What would make travel agent shops more appealing, October 2013
Decline in in-store bookings looks set to continue
Figure 8: Attitudes towards researching and booking a holiday, October 2013
What we think

Issues in the Market
How will the launch of new concept stores affect the market?
What will the Package Travel Directive reform mean for bricks-and-mortar travel agents?
What role will shops play in the evolving multichannel sales model?
How can sales personnel adapt to meet consumer demands?

Trend Application
Return to the Experts
Let\'s Make a Deal
Mintel Futures: Generation Next

Market Drivers
Key points
Draft Package Travel Directive set to impact in-store sales
Market spared high-profile failures
Figure 9: ATOL tour operator failures/closures in the UK, October 2012-November 2013
ABTA membership numbers have fallen, but branch office numbers are up
Figure 10: ABTA membership, March 2012 and March 2013
Figure 11: ABTA new membership numbers, January 2012-September 2013
Mobile internet penetration hits half of UK adults
Figure 12: Home internet access and mobile internet access among UK adults, Q1 2008-Q1 2013

Who’s Innovating?
Key points
Thomas Cook, TUI, Virgin and STA all unveil high-tech concept stores
STA strikes industry first, offering guaranteed airfares for a £49 deposit
TUI places agents in direct contact with holiday reps around the world
DreamCatcher allows agents to earn commission from online sales
Destinology system allows agents to compete with direct-sell rivals

Market Size and Forecast
Key points
Holidays booked in-store down 13% over five years
Figure 13: Estimated number of holidays booked via travel agents, 2008-18
Contraction in the market will continue through to 2018
Figure 14: Estimated number of holidays booked via travel agents, 2008-18
Forecast methodology

Segment Performance
Key points
Travel agents have maintained their share of overseas holidays…
Figure 15: Estimated number of overseas holidays booked via travel agents, 2008-18
but will not benefit from recovery in the wider overseas segment
Figure 16: Estimated number of overseas holidays booked via travel agents, 2008-18
The domestic segment has grown, but penetration remains low
Figure 17: Estimated number of domestic holidays booked via travel agents, 2008-18
Domestic bookings in-store to increase to 2.7 million by 2018
Figure 18: Estimated number of domestic holidays booked via travel agents, 2008-18

Market Share
Key points
Thomas Cook maintains its lead, despite store closures
Figure 19: Top 10 UK travel agents, by number of retail stores, including concessions and partner stores, November 2013
A range of brands are set on expanding their store portfolios
Midcounties’ fledgling Co-op Consortium has enjoyed rapid growth
Advantage retains Barrhead and welcomes members from Worldchoice

Companies and Products
Thomas Cook Group PLC
Figure 20: Financial performance of Thomas Cook Group PLC, 2011 and 2012
Figure 21: Financial performance of Thomas Cook Retail Limited, 2011 and 2012
TUI
Figure 22: Financial performance of TUI Travel PLC, 2011 and 2012
Advantage Travel Centres Limited
Figure 23: Financial performance of Advantage Travel Centres Limited, 2011 and 2012
The Co-op Consortium
The Travel Network Group (Worldchoice UK Limited)
Figure 24: Financial performance of Worldchoice Travel Limited, 2011 and 2012
Figure 25: Financial performance of Worldchoice UK Limited, 2011 and 2012
Figure 26: Financial performance of TTA (2007) Limited, 2011 and 2012
The Global Travel Group
Figure 27: Financial performance of The Global Travel Group Limited, 2011 and 2012
Flight Centre (UK) Limited
Figure 28: Financial performance of Flight Centre (UK) Limited, 2011 and 2012
STA Travel Limited
Figure 29: Financial performance of STA Travel Limited, 2011 and 2012
Virgin Holidays Limited
Figure 30: Financial performance of Virgin Holidays Limited, 2012 and 2013
Kuoni Travel Ltd
Figure 31: Financial performance of Kuoni Travel Limited, 2011 and 2012

Brand Research
Brand map
Figure 32: Attitudes towards and usage of brands in the travel agent sector, September 2013
Correspondence analysis
Brand attitudes
Figure 33: Attitudes, by travel agent brand, September 2013
Brand personality
Figure 34: Travel agent brand personality – macro image, September 2013
Figure 35: Travel agent brand personality – micro image, September 2013
Brand experience
Figure 36: Travel agent brand usage, September 2013
Figure 37: Satisfaction with various travel agent brands, September 2013
Figure 38: Consideration of travel agent brands, September 2013
Figure 39: Consumer perceptions of current travel agent brand performance, September 2013
Brand index
Figure 40: Travel agent brand index, September 2013
Target group analysis
Figure 41: Target groups, September 2013
Figure 42: Travel agent brand usage, by target groups, September 2013
Group One – Conformists
Group Two – Simply the Best
Group Three – Shelf Stalkers
Group Four – Habitual Shoppers
Group Five – Individualists

The Consumer – Use of Travel Agents
Key points
A third of holidaymakers bought a holiday in-store in the last two years
Figure 43: Travel agent use in the last two years, October 2013
Travel agent shops play a vital role, outside of just in-store sales
Under-25s are the most likely to have bought a product in-store
Usage is lowest among the higher earners, wealthy achievers and ABs

The Consumer – Reasons for Not Booking using a Travel Agent
Key points
Half of non-users think booking online is cheaper and quicker
Figure 44: Reasons for not booking through a travel agent shop, October 2013
A quarter of non-users would book online to avoid speaking to staff
Just 2% cite lack of a nearby shop as a reason for non-use

The Consumer – What Would Make Travel Agents More Appealing?
Key points
A price matching service would appeal to a third of adults
Figure 45: What would make travel agent shops more appealing, October 2013
New concept stores could perform well…
but there is less demand for expanding the concession model
A quarter of the adult population will remain off limits to travel agent shops

The Consumer – Attitudes Towards Researching and Booking a Holiday
Key points
Decline in in-store bookings looks set to continue
Figure 46: Attitudes towards researching and booking a holiday, October 2013
Comparison sites remain a key challenge for retail stores
Financial protection is a key driver behind in-store sales
Brand recognition is a key benefit to having a strong high street presence

Appendix – Brand Research
Figure 47: Brand usage, September 2013
Figure 48: Brand commitment, September 2013
Figure 49: Brand momentum, September 2013
Figure 50: Brand diversity, September 2013
Figure 51: Brand satisfaction, September 2013
Figure 52: Brand attitude, September 2013
Figure 53: Brand image – macro image, September 2013
Figure 54: Brand image – micro image, September 2013
Figure 55: Profile of target groups, by demographics, September 2013
Figure 56: Psychographic segmentation, by target groups, September 2013
Figure 57: Brand usage, by target groups, September 2013
Brand index
Figure 58: Brand index, September 2013

Appendix – The Consumer – Use of Travel Agents
Figure 59: Travel agent use in the last two years, October 2013
Figure 60: Travel agent use by holidaymakers in the last two years, October 2013
Figure 61: Travel agent use in the last two years, by demographics, October 2013
Figure 62: Travel agent use in the last two years, by demographics, October 2013 (continued)
Figure 63: Travel agent use in the last two years, by demographics, October 2013 (continued)
Figure 64: Travel agent use in the last two years, by demographics, October 2013 (continued)
Figure 65: Travel agent use by holidaymakers in the last two years, by demographics, October 2013
Figure 66: Travel agent use by holidaymakers in the last two years, by demographics, October 2013 (continued)
Figure 67: Travel agent use by holidaymakers in the last two years, by demographics, October 2013 (continued)

Appendix – The Consumer – Reasons for Not Booking using a Travel Agent
Figure 68: Reasons for not booking through a travel agent shop, October 2013
Figure 69: Reasons for not booking through a travel agent shop, by demographics, October 2013
Figure 70: Reasons for not booking through a travel agent shop, by demographics, October 2013 (continued)

Appendix – The Consumer – What Would Make Travel Agents More Appealing?
Figure 71: What would make travel agent shops more appealing, October 2013
Figure 72: What would make travel agent shops more appealing, by demographics, October 2013
Figure 73: What would make travel agent shops more appealing, by demographics, October 2013 (continued)
Figure 74: What would make travel agent shops more appealing, by travel agent use in the last two years, October 2013
Figure 75: What would make travel agent shops more appealing, by travel agent use in the last two years, October 2013 (continued)
Figure 76: Travel agent use in the last two years, by what would make travel agent shops more appealing, October 2013
Figure 77: Travel agent use in the last two years, by what would make travel agent shops more appealing, October 2013 (continued)

Appendix – The Consumer – Attitudes Towards Researching and Booking a Holiday
Figure 78: Attitudes towards researching and booking a holiday, October 2013
Figure 79: Attitudes towards researching and booking a holiday, by demographics, October 2013
Figure 80: Attitudes towards researching and booking a holiday, by demographics, October 2013 (continued)
Figure 81: Attitudes towards researching and booking a holiday, by travel agent use in the last two years, October 2013
Figure 82: Attitudes towards researching and booking a holiday, by travel agent use in the last two years, October 2013 (continued)
Figure 83: Travel agent use in the last two years, by attitudes towards researching and booking a holiday, October 2013
Figure 84: Travel agent use in the last two years, by attitudes towards researching and booking a holiday, October 2013 (continued)

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