Travel Weekly Insight Annual Report 2017
Analysis of the UK travel market
Travel sector performance remains robust in 2017. However there may be a few clouds on the horizon.
We are proud once again to partner with Travel Weekly to produce the Travel Weekly Insight Annual Report 2017, in which we provide our perspectives and views of the UK travel market within the context of the global economic and political landscape.
Despite pressures on consumer income from rising inflation and slow wage growth, the UK travel sector has performed well in 2017. Consumers continue to prioritise their holiday spending and remain confident about travelling amid other world events. The falling value of the sterling has attracted more inbound visitors and encouraged UK consumers, who get less for their money abroad, to opt for domestic travel. However this doesn’t appear to be at the expense of overseas holidays.
Looking ahead to 2018, demand is expected to remain strong in the short term despite a likely rise in holiday and travel prices. However businesses need to monitor closely how consumer confidence develops in the midterm as levels of personal debt, a hike in interest rates and uncertainties around Brexit may start to impact behaviour. To remain competitive and ensure a smooth customer experience it is vital that travel businesses innovate and consider how they collaborate and share data, while complying with GDPR which in comes into effect in May 2018.
- In 2017 the travel sector performance was strong with half of UK adults taking at least one overseas holiday
- The immediate future looks positive. Holiday spending in Q4 2017 is likely to be stable, while the share of consumers planning a holiday for next year has increased.
- Pressure on consumer income is starting to impact discretionary spending. In travel, there are signs of ‘downshifting’ as more consumers intend to stay at lower star rating hotels and take shorter holidays.
- More collaboration and improved data sharing is key to encouraging further increases in mobile bookings and in unlocking the benefits of personalisation.
- To maintain consumer confidence, the travel sector needs reassurance that easy movement of people and aircraft continues post-Brexit.