Almost a third of Britons expect to be financially worse off in 2011, according to a report launched today, with the travel sector expected to feel the impact as consumers reign in spending.
The Webloyalty Travel Market Report by TNS Research International reveals 28 per cent of Britons fear they will be worse off in 2011, with entertainment, international travel, domestic travel and clothing the areas where consumers will cut back on their spending.
“The Webloyalty Travel Market Report suggests people are cautious, even pessimistic, in their outlook for 2011. Travel overseas and within the UK are two of the top four purchases consumers will be cutting back on, bringing continued heartache to the travel industry which has already experienced a 15 percent decline in overseas holidays in 2009 and the likelihood of further decline in 2010,” says Tom Costley, Head of TNS Travel & Tourism.
This financial uncertainty means Britons are not planning ahead when it comes to travel, and when people are considering a holiday, the majority (52 per cent) are likely to stay with friends or relatives in the UK as their break away from home. So it’s bad news for airlines but possibly good news for coach and train operators.
“The report found that half the population considers holidays a luxury. When you combine this sentiment with general pessimism about personal finances, many people are delaying travel plans to make sure they can afford it nearer to the time. Britons may also be waiting for last minute ‘good deals’ to get greater value from their holiday purchases,”
This could make 2011 the most competitive year yet for the travel sector, with airlines and coach and train operators, travel agents and hotels vying for business from money-conscious travellers.
“Our research shows that people consider previous experiences and personal recommendations as the most important sources of information when planning a holiday. If holiday makers get a good deal, they will provide repeat business and spread the word. This means the pressure is now on travel businesses to give customers added value at a competitive price in order to attract business in 2011,” added Martin Child, Managing Director Europe, Webloyalty.
“The winners in the travel sector for 2011 will be the retailers who give travellers the best deal without compromising on service. Travel retailers will need to offer customers value and rewards to show that they are spending their money wisely and getting the best deal,” added Martin Child.
WEBLOYALTY 2011 TRAVEL MARKET REPORT – AT A GLANCE:
•A third of the population regard a holiday as a necessity, whilst half consider it a luxury.
•The top three most likely types of holidays Britons will take in 2011 are
1. Visiting friends and relatives in Britain
2. A short break within Britain
3. One main holiday to an overseas destination
•In 2011, 39 per cent of travellers are more likely to make independent travel bookings because of the financial collapse of package holiday companies in 2010.
•Of those planning to take a holiday in 2011 almost half (48 per cent) stated their main holiday would be within Britain and a quarter indicated Europe or the Mediterranean would be the destination of their main holiday.
•When selecting an airline, those under the age of 35 are most likely to select the ‘cheapest ticket’ option. Those over 45 years are more likely to regard flying from the nearest airport and on a direct flight as more important than a cheap ticket.
•For people who fly on budget airlines, a more generous baggage allowance would encourage them to fly more – particularly among females. Older flyers would prefer being guaranteed a seat on the next available flight or overnight accommodation at no extra cost and frequent flyers would like vouchers off their next flight with the budget airline.
•Sources of information ranked as most important when researching destinations are: previous experience of the destination; personal recommendation followed by ratings from a review site. Recommendations from social networks (e.g. Facebook) were considered the least important.
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