Travel Trade Scan United Kingdom 2022 - NBTC.nl
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Photo: Hollandse Hoogte/ANP Foto Travel Trade Scan United Kingdom 2022
Travel Trade Scan
United Kingdom
Table of contents
1 Snapshot of the UK travel market 3
2 Market position and market developments 6
2.1 Travel market size
2.2 Travel industry players
2.3 Travel industry figures
2.3.1 Number of travel businesses
2.3.2 The tour operator segment
2.3.3 The travel agency segment
2.4 Travel market developments and trends
2.4.1 The customer journey and booking behaviour
2.4.2 Supply development
2.4.3 Travel trends
2.5 Market position – Destination The Netherlands
2.5.1 The UK as a source market 2019–2021
2.5.2 Relevant target groups
2.5.3 The Netherlands product offer
2.6 SWOT UK-market
3 Summary 26
Sources
2
1 Snapshot of the
UK travel market
The key events that impact the UK travel industry’s
supply and demand and shape the post pandemic
travel recovery, which is expected to reach 2019
levels by 2025.
3
Study
trip
Snapshot of the UK travel market
€
55% 29%
53% 29%
58% 27%
€ Beach
holiday
Culture
holiday
Family
holiday
%
8%
7% Sightseeing
%%
9% holiday
41%
%
45%
€%
34%
City
% holiday
% €% Beach
holiday
% Culture
holiday Adventure Party
%
holiday
€ €
holiday
Party
Study
holiday
trip
Family
€ holiday
€ % 15%
13%
21%
Spa
Health
Spa holiday
holiday
€
holiday
41%
€
13% 45%
13% 34%
Nature
12% 8% holiday
7% 13%
€ %€ 9% 13%
12%
€
€ Adventure
holiday
Activity
holiday
15%
% %
€
13%
21%
€
Activity Sightseeing
holiday holiday
55%
53%
58% 13%
13% Health
29% 11% holiday
29% 13%
% 27% 13%
%
City
11%
holiday
Nature
holiday
Travel volume
Up and until 2019 UK citizens travelled extensively, and mostly for leisure. However, in 2020, due
to the (COVID-19) pandemic the number of overseas trips fell dramatically by 74 % to 24 million
trips (down from 66 million overseas trips in 2019). On these trips abroad, UK visitors spent
£13.8 billion, down 78 % from 2019 (£62.8 billion). 80 %, or 19 million, of these 24 million trips
were in Europe. In 2020 the most popular European destination was Spain, followed by France
and Italy. The Netherlands came sixth place. The number of UK visitors to the Netherlands
reflected the global decrease in travel volume; 595,000 UK residents visited the Netherlands, a
decline of 75 % compared to 2019, when 2.4 million visitors came to the Netherlands from the UK.
The impact of the pandemic
on travel businesses
The pandemic had a devastating effect on both tour operator and travel agent businesses.
According to Statista’s Industry Outlook, the estimated revenue of the industry was £25.7 billion
in 2020, dropping by over 70 percent compared to the previous year due to the (COVID-19)
pandemic. Revenue figures for 2021 are not yet available. In the course of 2020 and 2021 a few
longstanding travel businesses, e.g. tour operators like STA Travel and Shearings went into
administration and travel agent TUI closed more than 350 retail shops. However, despite all
odds, there were also new travel businesses starting up during the pandemic, such as the world’s
first non-flight tour operator, Byway Travel, who recognised the rising consumer demand for slow
and sustainable travel.
4
Snapshot of the UK travel market
The impact of Brexit on travel
Despite concerns surrounding the impact of Brexit, it seems that it had no considerable effects
on the travel behaviour of UK residents. The number of holiday trips taken abroad until the
pandemic hit had increased each year, and the positive travel sentiment towards overseas travel
remains high. As a result of Brexit the UK is now classified as a third country, and that did have an
effect during the pandemic as the EU-travel ban also applied to the UK. The ban resulted in strict
COVID-19-related EU-entry rules and consequently made travel to the EU, and the Netherlands,
impossible during certain periods during 2021 and 2022.
Travel sentiment
For travel businesses there is still a long way to go to recover from two years (March 2020 –
March 2022) of lost revenue. Businesses are now confronted with the impact of current global
events, especially the war in Ukraine, and the escalation of fuel prices. Various research shows
that by and large holidaymakers are not deterred from travel. Holidays remain a spending priority
and people say they would cut back on other things before their holiday spend. Since March
2020, UK consumers have gone from not being able to travel at all to spending hundreds of
pounds on COVID-tests each time they wanted to travel. It is believed that higher prices for airline
tickets alone won’t stop consumers from travelling now. However, in combination with
considerable increases in the cost of living, particularly energy and fuel, and inflationary food and
drink prices, it is likely to impact travel behaviour on the short term, keeping the appeal of a
staycation or visiting close-by European destinations top of mind. In the future, rising concerns
about the environment may push more UK consumers towards a staycation in the UK or European
destinations that can be reached by road or rail. The Netherlands would undoubtedly benefit
from such a development.
Travel booking behaviour
It is estimated that half of all UK holidaymakers across all age groups usually book their holidays
themselves, either online with an Online Travel Agent (OTA), airline or hotel. OTA’s have been
popular among all age groups and the pandemic has strengthened the trend for online
bookings. Interestingly, during the pandemic tour operators and travel agents also increased in
popularity due to the fact that travel bookings had become more complex with COVID-19 travel
rules and measures. Concerns about safety and hygiene as well as booking flexibility and refund
policies played out in favour of travel businesses that could advise and reassure their customers
during the holiday planning and booking process. Many consumers opt for a multichannel
approach when planning and booking their holidays – in the early stages they go online for
search and inspiration; additionally they may contact a travel agent via phone, email or chat to get
their questions answered. Then they tend to book confidently online, or with a tour operator that
offers the best price, terms of booking or who they are loyal to. While OTA’s are a popular choice
for city trips and short trips, special interest tour operators are firm favourite for consumers who
are looking for something special, such as festivals, events, arts & cultural heritage, active
holidays etc.
52 Market position
and market
developments
A comprehensive overview of the state and
development of the UK travel industry, its main
players, consumer demand and trends, with a special
focus on travel from the UK to the Netherlands.
6Market position and market developments
Photo: Liset Verberne
2.1 Travel market size
The UK travel market is one of the biggest globally, both in domestic and international terms.
UK residents love to travel. In previous years and until 2019, the UK took fourth place in the
ranking of a source market for global travel. However, in 2020 the UK dropped to fifth place
behind France. This is largely due to the fact that since leaving the EU, the UK is classified as a
third country and the EU-entry ban consequently applied to the UK during the pandemic. In
terms of travel spending per head by European nations, the UK retains its second place, only
narrowly behind Germany.
Figure 1
Countries with the highest international tourism expenditure
worldwide in 2019 and 2020 (in billion U.S. dollars)
130.5
China
254.6
39.3
U.S.
134.6
38.9
Germany
93.2
27.8
France
50.5
21
UK
70.6
13
Belgium
18.8
12.6
India
22.9
12.1
Canada
35.8
10.9
Italy
30.3
9.1 2019
Rus. Fed.
36.2 2020
Source: UNWTO
Source: UNWTO
7Market position and market developments
Figure 2
Outbound travel and tourism expenditure in leading countries
worldwide in 2019 (in billion U.S. dollars)
China 262.1
U.S. 184.2
Germany 104.8
UK 90.2
France 56.2
Australia 43.8
Canada 42.2
Spain 36.7
Italy 36.4
South Korea 33.5
Source: WTTC
The UK tourism industry is one of the largest worldwide. In 2019, there were 241,000 tourism-
related businesses and 3.3m employees in the UK. In the same year, the turnover of enterprises
operating in the industry, travel agencies, tour operators and other reservation services and
related activities, was approximately £45.6 billion up from £33 billion in 2016, the highest
turnover in the last decade (between 2008 and 2018).
2.2 Travel industry players
Tour Operator
A Tour Operator is a company that thinks up and researches ideas for holidays, designs the
holiday itinerary and content, contracts the services needed for the holiday (e.g. accommo
dation, transport, guides, tour leaders or resort reps) and then markets the resultant package.
They sell the package either directly to the consumer or use the services of a travel agent to do
so. By law, a tour operator is referred to as a “principal”, meaning they take responsibility for the
package that they create and cover that liability with (usually) an ATOL-license and/or some form
of bonding to ensure that the consumer gets their money back or is flown home in case they are
abroad at the time that the tour operator fails. There are different types of tour operators that
specialise in one or various segments of the travel market. There are wholesalers, coach tour
operators, cruise operators and specialized tour operators that focus on holiday types such as
culture, arts & history, outdoor & active, cycling & hiking, gastronomy & wine, gardens & horti
culture, and so on.
(Travel) Wholesaler
A wholesaler in the travel industry is a company that purchases and distributes travel products
such as hotel rooms, transfers and tours & activities products to their network of clients. These
clients can include for example tour operators, airlines and OTAs. There are wholesalers that
focus on creating a wealth of travel packages for destinations, that would be distributed mostly
to coach and group tour operators.
8Market position and market developments
(Retail) Travel Agent
Travel agents sell holidays and other travel products to consumers through retail travel agents in
stores, web-based agencies and/or call centres. They offer the consumer a range of holiday
packages that have been put together by a tour operator. They do not, in theory, put together
any of their own packages; they sell lots of different holidays put together by lots of different tour
operators. They do not usually design or create the holidays they sell, and they do not act as a
Principal; the tour operator whose product they sell takes the responsibility for the holiday; the
travel agent does not. And therefore the agent usually does not have an ATOL-license or any
bonding in place, but relies on the tour operator to cover this.
Online Travel Agent (OTA)
OTA’s provide online travel reservation and booking services, taking a percentage of the total
transaction value booked through their websites to generate revenue. Their main activities
include: booking flights, accommodation and activities online, selling travel package holidays
online, organising travel arrangements online and providing travel information online.
The Online Travel Agencies (OTA) industry consists of two primary operating models: an agency
model and a merchant model. Under the agency model, the OTA acts as a distribution channel
for tourism product providers, taking a commission on the total value of a booking. The hotel
owner has the opportunity to decide the final sales price to the customer, which gives more
control to the owner. The main characteristic of the Agency Model OTA is that the guest pays the
Hotel directly when the stay occurs and the hotel pays the OTA commission after the stay has
taken place.
In this case a hotel provides the OTA a final sell rate, over which a commission is paid to the OTA
by the hotel after the booking at the hotel has been consumed. Example: Booking.com.
Under a merchant model, the OTA bulk purchase services such as flights, rooms and activity
tickets from tourism providers such as airlines and hotels at a discount, and re-sells these
products to consumers at a profit. In this case the contract is between the hotel and the OTA.
The main characteristic of a Merchant Model OTA is that the guest pays the OTA at the time
of booking a room, and the OTA afterwards pays the hotel when the actual stay occurs. In this
case hotels give the OTA a net rate, to which a mark-up is applied to determine the sell rate to the
end consumers. Example Expedia, Priceline, Agoda and Getaroom.com
2.3 Travel industry figures
2.3.1 Number of travel businesses
As the graph below illustrates the number of businesses in the UK tour operator and travel agent
segments both experienced growth between 2008 and 2019. In 2019, there were 2,089 tour
operators, up from 2,040 the previous year and 4,879 travel agents, up from 4,756 respectively.
The pandemic has had an adverse effect on the total number of travel businesses in the UK.
According to figures from the BP Travel Marketing Report, around 68 travel businesses went into
administration in 2020, and a further 82 during 2021. It goes without saying that the revenue
decreased sharply as well between March 2020 and March 2022. Although it has recovered in
recent months, it is still below pre-pandemic levels.
9Market position and market developments
Figure 3
Number of travel agency and tour operator enterprises in the
United Kingdom (UK) from 2008 to 2019
4,879
4,691 4,756
4,566 2,089
4,414 1,910 2,040
4,205 1,997
4,070 1,860
1,600 3,972 3,925
3,828 3,847 3,814 1,852
1,670 1,822
1,626 1,673 1,780
2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019
Tour operators
Travel agencies
Source: Office for National Statistics (UK)
2.3.2 The tour operator segment
The tour operator segment entails a wide variety of different types and sizes of tour operator
businesses. The sector is represented by specialist or niche tour operators, coach tour operators,
group tour operators, cruise tour operators, school and study tour operators etc. The majority of
tour operators that sell air travel would be ATOL protected and are legally required to hold such a
license. ATOL stands for *Air Travel Organizers’ Licensing. ATOL is the Civil Aviation Authority’s
licensing scheme to financially protect passengers that purchase package holidays and flights
from a member tour operator. ATOL currently protects around 20 million holidaymakers each
year. It is able to provide assistance by requiring ATOL holders to pay a fee of £2.50 for each
traveler, which is held in a fund managed by the Air Travel Trust. The Civil Aviation Authority
shows the top 25 operators based on the number of passengers they are authorized to carry
by air travel.
According to figures from the travel association ABTA (Association of British Travel Agents)
published in December 2021, since the start of the pandemic the average turnover was just
22 % of normal levels for tour operators. In particular, smaller businesses found it difficult to
survive after two lost summer seasons in 2020 and 2021. Employment across the travel industry
has halved since the beginning of the pandemic in March 2020, according to ABTA research.
Booking volumes over summer and autumn 2021 were just 28% of that period in 2019, and
reported turnover for the last financial year averaged only 22% of pre-pandemic levels.
However, over the next five years, industry revenue is anticipated to be supported by demand,
with pre-pandemic levels returning in the long term. For beach and long-haul holidays, people
may opt for package holidays as they prioritize convenience and value for money during uncer
tain times. Tour operators and travel agents are expected to adjust their businesses towards more
prof itable segments and developing their product offering, as holidaymakers increasingly shift
to independent holidays in popular destinations.
10Market position and market developments
Figure 4
List of the UK’s Top 50 Tour Operators, based on
ATOL-authorized passenger levels
TUI UK 5,122.44
Jet2holidays 3,750
On the Beach 1,336.6
We Love Holidays 1,065.4
easyJet Holidays 855.7
British Airways Holidays 643.75
Expedia 410.95
BravoNext 409.96
Booking.com 285.29
Southall Travel 248.8
easyJet airline Company 180.11
Gold Medal 174.88
Trailfinders 161.97
Hays Tour Operating 160.67
Thomas Cook Tourism (UK) 145.92
Virgin Holidays 134.52
Carnival plc 126.46
Travel Republic 116.54
Marella Cruises 112.25
Classic Package Holidays 103.26
Cresta World Travel 82.74
Travel Up 80
Lotus Travel 76.94
James Villa Holidays 75.1
Broadway Travel Service 72.4
(Wimbledon)
Source: Civil Aviation Authority (UK)
Specialist/niche tour operators
The core market for specialist travel has traditionally been the 55–75 age bracket. The 50plus
market is growing further, with the number of births outweighing the number of deaths over the
past 80 years. The 55–64 age group has the largest disposable income, accounting for 28 % of
all media household wealth. This demographic has shown itself to prioritize their health, fitness
and leisure time above all else – and they spend money easily on breaks away.
Top 5-Specialist Activities
1. Exploring culture, arts and history
2. Walking and trekking
3. Wildlife
4. Safaris
5. Gastronomy and Wine
The profile of customers wishing to explore a destination’s culture, art and history as their primary
activity whilst on holiday, is predominantly between 60 and 79, and is open to both tailor-made
trips (FIT) and smaller group tours. 41% of travelers who wish to pursue this activity would spend
more than £2000 per person on their main holiday, with 25 % of respondents willing to spend
over £3000 per person. This is more than the majority of other activities on this list suggesting
that they are willing to invest more for the expertise required to execute a well-informed cultural
trip in return for valuable knowledge about a destination.
11Market position and market developments
Higher value trips traditionally have a longer lead time between booking and actual travel.
The most common lead time is 6–12 months, followed by 3–6 months. Through marketing com
munications, an operator’s extensive and trusted product knowledge can help to encourage
bookings. The travelers who value an operator’s specialisms, tied with their personal service, are
more likely to book over a year in advance. This echoes the need for investment in customers in
order to ensure not only higher value bookings, but also building loyalty with repeat customers.
The loyalty is reflected in the appreciation of a previous good experience with an operator,
whether this be first or second hand. Customers with a longer lead time value customer reviews
more than that with a shorter lead time. Good reviews increase a potential’s traveler’s confidence
in an operator. Specialist travelers are not as price sensitive as mainstream holidaymakers, but
price is still a concern. Impulse buyers with a shorter lead time of 1–4 weeks are more price
sensitive than those booking in advance. For the majority, demonstrated knowledge and
expertise, personal service, and tailored specialism is more likely to lead to early bookings.
Coach tour operators
According to research undertaken in 2017 by the CTC (Coach Tourism Council), about 18 million
day trips are taken in the UK each year. It is estimated that well over 5 million UK residents go on a
short break or longer holiday by coach, spending £1,4 billion a year. The survey was conducted
amongst 25,000 people, of which the majority was 55–74 years old, which describes the core
target market for coach tourism. From this demographic, 57% travel as a couple, 14% with
friend/friends, 12.4% with immediate family, 11.4% alone.
For 80% of the survey respondents, coach holidays are the most popular choice, followed by
beach/sun holidays (52%), cruise (30 %) and train (13.5%). Their preferences are to take a break of
4 nights or more in the UK (68%), followed by a short break in the UK of 1 to 3 nights (49%) and a
longer break abroad of 4 nights or more (45%).
The top five reasons for choosing travel by coach:
1. They take the hassle out of travel,
2. They’re a social way of travel,
3. They offer good value for money,
4. They’re comfortable,
5. They offer a safe way of travel.
And for 36% of over 65s they’re a luxury form of travel.
Which coach holidays would you like to take in the future:
1. All-inclusive travel (travel, accommodation, food & drink, and entry to attractions all included),
2. Luxury coach tour (luxury coaches, premium hotels, and upmarket destinations),
3. Special interest coach tour (e.g. history, food & wine, gardens),
4. A mixed flight and coach tour (fly to a destination and tour by coach),
5. A mixed cruise and coach holiday (coach to a port then cruise from there).
Others are interested in Battlefield Tours, low cost holidays, tours for singles and mystery tours,
as well as family focused holidays. Coach tour operators need to introduce new products to
appeal to both their repeat and new customers.
2.3.3 The travel agency segment
As of January 2022, the three biggest travel agents according to the number of retail travel shops
are Hays Travel (the biggest), Advantage and TUI, who combined operate 1,350 travel shops
across the UK. Advantage is part of Advantage Travel Partnership, the UK’s leading consortium of
independent travel agencies. It overtook TUI as the second biggest travel agent after the closure
of around 350 TUI retail outlets in March 2020. According to research figures from BP Travel
Marketing, as a consequence of the pandemic the number of travel shops operated by retail
travel agents declined by roughly 12% between March 2019 and March 2022, at which point
there were 3,710 retail travel agent stores.
12Market position and market developments
Figure 5
Leading travel agencies in the United Kingdom (UK)
as of January 2022, by number of travel shops
Hays Travel Shops 709
Advantage 324
TUI 317
Independent ABTA Agents 272
Flight Centre 205
Co-op Travel 191
Global Travel Group 178
(The Travel Network)
Travel Trust Association 152
Worldchoice 141
(The Travel Network)
Hays Travel Independent Group 106
(The Travel Network)
Barrhead Travel 81
STA Travel 44
Elite Travel Group 39
(Advantage)
Althams Travel Services 31
(Advantage)
Dawson & Sanderson 24
(Advantage)
Source: BP Travel Marketing
Retail travel agencies vs Online Travel Agencies
It is interesting to take a closer look at the market shares of retail travel agencies and OTA’s (online
travel agencies). As the graph below shows, 2018 marked the year when the market value of
online travel agents (OTA’s) overtook in-store travel agents. This is, of course, closely related to
consumer booking behaviour and preferences.
Figure 6
Market value of travel agents across the UK, 2017–2023
24,000 5,555,145
23,000 4,804,809
Online Travel agencies
22,000
21,000
20,000 In-Store Travel Agents
19,000
18,000
2017 2018 2019 2020 2021 2022 2023
Source: GlobalData Travel and Tourism Intelligence Center
13Market position and market developments
According to GlobalData OTA’s are now the most typically booked provider with *39% of UK
travelers using an OTA in 2019. Travelers can now generally handle all aspects of the booking
themselves. Pre-booking, arranging accommodation, hotels, transport, in-destination navigation
and post-holiday reviews highlight that the 21st century traveler is not only more independent,
but also more powerful than ever before. Reasons for the popularity of OTA’s are that they are
perceived to offer better prices and value, that the websites are very user-friendly and it enables
holidaymakers to compare offers. GlobalData’s latest thematic report, ‘Impact of online travel’,
reveals that evolving consumer attitudes are driving the increasing power behind the online
travel industry. All destinations, whether identified as technologically advanced or still
developing economically are gradually adapting to online travel trends.
The major OTA’s (Online Travel Agents)
In 2019 the turnover of the OTA segment came to £2 billion with about 882 OTA businesses who
employ some 4,161 people. The OTA’s holding the largest market share include Booking
Holdings Inc., eDreams ODIGEO, Expedia Group Inc., Hostelworld.com Ltd., MakeMyTrip Ltd.,
Thomas Cook (India) Ltd., Trip.com Group Ltd., TripAdvisor LLC, and TUI AG. These are the top
players in the market.
OTA customers
OTA customers are tech savvy. Most people do not just shop on the phone, they shop across
devices (omnichannel) and Expedia data reveals that over half of all their customers transactions
have touched more than one device prior to booking. Multi-device ownership is becoming the
norm. Consumers are constantly connected to their phone, computer and tablet all at the same
time, and their purchasing habits are reflecting this. Over a third of OTA customers (36%) are
between the ages of 25–39 years. Travelers aged 25–34 are the generation most on the go, with
82 % of this age group travelling for leisure in 2015; the second highest-travelling group are
18–24 year-olds at 76% for leisure. Millennials now represent almost four in 10 leisure travelers.
They are also the group who travel internationally more than any other age group, with half of
18–34 year-olds travelling overseas (compared with 39% of 25–54 year-olds and 20 % of the
55+ bracket). More than a third of 18–34 year olds (38%) typically use an OTA to book a hotel,
while less than one fifth (18%) book on a hotel website. More than a third of 35–54 year olds also
typically book their hotel on an OTA versus a quarter (26%) who book directly on a hotel website.
Photo: Iris van den Broek
14Market position and market developments
2.4 Travel market developments
and trends
2.4.1 The customer journey and booking
behaviour
The customer journey during the pandemic
During the (COVID-19) pandemic tour operators have gained in popularity. In most cases, mainly
when they sell air travel either standalone or as part of a package, they are ATOL-protected and
obliged to either issue a voucher or pay back the booking value amount if travel can not go
ahead. Research suggests that flexible booking conditions and confidence in the availability of a
refund if forced to cancel will be critical considerations for many UK holidaymakers.
According to ABTA (Holiday Habits Report 2019), the customer journey of holidaymakers and the
way they interact with travel professionals, continues to evolve. Phone bookings had already seen
a slight increase of percentage points from 2018 (15%) to 2019 (17 %), with the biggest growth
coming from the over 75s – almost doubling over the course of a year (44% vs 23% in 2018).
While the travel sector has not been immune to the pressure on the British high street impacting
many retailers in recent years, with in-store-bookings falling from 15% in 2018 to 12% in 2019, this
masks some interesting trends. People are more than twice as likely to book a foreign holiday
(only) rather than a domestic holiday (only) in store (13% vs 6%). Interestingly, 18–24 year olds are
the age group booking most holidays in-store, with an 8% increase since 2018 (22% vs 14% in
2018). Those with young families are also more likely than average to book in-store (17 %), while
more than a quarter (26%) of affluent holidaymakers (social group A) book in-store.
Online booking figures remained steady in 2018 and 2017 (83% vs 81%). Research shows that
16% of people who book a holiday online now seek additional support – such as using a live chat
service or speaking with a travel professional via social media. This suggests that people more
frequently seeking a variety of ways to get travel insights and expertise to support their online
experience. Whilst people are increasingly using social media as a method of interacting with
travel professionals, the reliance of social media to provide holiday inspiration and information
has fallen this year, with 13–10 % for social media posts of friends and family and 9–6% for brands
and influencer posts. At the same time, when comparing 2018 to 2017, there were uplifts in
the number of people preferring to consult travel company websites or travel professionals
(36% vs 32% and 17 % vs 14% yoy respectively). This suggests a growing wariness of social media
as a source of information, perhaps reflecting high awareness of fake news and fake reviews.
Figure 7
Likely way to book the next overseas holiday 2022
37%
Online
travel 29%
agency Seperate
bookings
of airline /
20% accomodation
High street
agency
14% 15%
Tour
operator Don’t know
Source: Travel Weekly; Service Science; Deloitte; Kantar, October 2021
15Market position and market developments
Figure 8
Likely way to book the next overseas holiday by age group
OTA
High street agency / tour operators
Direct with airline / hotel
57%
44% 45% 51%
43% 43%
40% 41%
38% 39% 38%
35% 36% 35%
33% 32%
31% 30% 31%32% 31%
29%
27% 27% 27% 26%
25%
19%
16-24 25-34 35-44 45-54 55-64 65+ Child No child Two-plus
hols a year
% of UK adults intending to take overseas holiday in 2022 abroad
37% OTA
Source: Travel Weekly; Service Science; Deloitte; Kantar, October 2021
20% High street agency
14% Tour operator
29% Separate bookings of airline/accommodation
15% Don’t know
Responses exceed 100%
2.4.2 Supply development
Sustainability
In 2019 the travel industry’s biggest challenge was the transformation towards sustainability.
Offsetting emissions by paying for trees to be planted clearly was not enough, and the industry
knew that it needed to shift from a business model based purely on profit to one in which more
focus was put on social and environmental concerns. Sustainability and environmental protection
has moved from simply being on the agenda to the heart of travel companies’business planning
and decision making. It has become more important for a business to show their serious efforts in
this area, whether through certifications, donations (e.g. CO² levies) or within the framework of
aid projects. This goes hand in hand with the fact that for many travelers, product quality includes
sustainability in the sense of environmental and social compatibility of the offers. Consumers
are clearly thinking about sustainability at some point during their holiday-making decisions.
UK holidaymakers are becoming increasingly aware of the environmental and social impacts of
their holidays and factor this into the travel buying process.
Half (50 %) of people say now that the green credentials of a travel company are important or
essential when choosing a holiday and this has been growing over recent years, up 5 % in one
year alone from 2018 to 2019. The two areas of greatest concern for people are waste and plastic
pollution and the treatment of animals. Businesses are introducing new approaches to waste
management. In the survey 54% also stated that they were concerned about the impact of
climate change with those aged 25–34 most likely to be concerned. Research by travel firm
“travel counsellors” reveals that over three quarters of holidaymakers look for sustainable
16Market position and market developments
credentials when making a booking. Results showed that 90 % of travelers said if they knew
which companies specialised in sustainable travel, they’d be more likely to book their travel plans
with them. Whilst sustainable travel may be a rising priority for holiday-goers, it is perhaps clear
that not enough travel companies are meeting the demand in showcasing their sustainable travel
offering. Despite sustainability being one of the factors considered when booking a holiday,
66.8% of travellers said they couldn’t actually name a single company that promotes sustain
ability. Travel companies will have to embrace consumer attitudes towards sustainability and
adapt their travel offer to meet consumers expectations.
Tours and activities
The tours and activities segment currently plays a considerable role in the travel market. After
flights and accommodation it is the third-largest travel segment in the travel industry and it is
estimated to be worth over $150 billion and represents 10 % of the global travel market. No
wonder that tour operator businesses are looking closely at opportunities in this segment. TUI is
a prime example of a business that transformed its business model from a traditional tour ope
rator towards a fully vertically integrated provider of holiday experiences. In 2018, TUI acquired
Musement. The tours and activities platform TUI Musement was designed as a two-sided open
platform, which offered not only its own products but also experiences from distribution partners
and third parties to its own customers as well as external customers. Travolution reported in
September 2021, that TUI also struck a deal with Eurostar to supply tours and activities via the
high-speed international rail operators’ app. Since the collaboration between TUI and Eurostar
began in 2018, the Eurostar platform has been developed and populated by TUI with
5,000 experiences available to Eurostar customers in the UK, France, Belgium and The
Netherlands.
The tours and activities segment has clearly moved into the digital world, and OTA’s like
Tripadvisor, Airbnb, and Expedia are currently all making significant investments in tours and
activities either by purchasing companies or expanding their tour and activities offerings.
2.4.3 Travel Trends
More online bookings
According to Mintel, and in line with earlier mentioned research, the share of those who booked
their main holiday online is lower among older travellers; 76% of 55–64 year olds and 64% of
over–65s booked their main holiday in the 12 months to February 2020 online versus 83% of all
UK travellers. However, the pandemic is considered likely to boost online bookings among older
generations. During the lockdown, consumers resorted more to online activities such as online
grocery shopping and staying in touch with family and friends through video calls. Some of this
behaviour is likely to stick post-pandemic. Making booking processes as easy as possible and
offering options to get in touch for support easily will be important to encourage online bookings
among older generations – especially as they perceive customer service as very valuable and
important when choosing which company to book with.
Smartphone overtakes tablet as second most popular booking method
According to Mintel research 18% of travellers used a smartphone to book the main holiday they
took in the 12 months to February 2020, up from 13% a year earlier. Younger audiences drove the
increase in the share of travellers who booked their main holiday via a smartphone. The majority
of holidaymakers, 60 %, booked online via a laptop or desktop computer.
17Market position and market developments
Figure 9
Smartphone overtakes tablet as second most popular booking
method – How the main holiday was booked
60%
18% 13% 12%
Online on
a laptop
8%
or desktop 2%
computer
online on a via online on a
smartphone telephone tablet another
In-store
way
Source: Mintel, UK Holiday Planning and Booking Process Market Report 2020
Customer service through chat
According to Mintel, 39% of UK holidaymakers would be interested in communicating with a
travel agent via webchat when researching a holiday as of February 2020, rising to 49% among
travelers aged 16–34. Consumers resorted to more online activities during the lockdown, which
is expected to contribute to rising interest in communicating with companies online.
Social Media in travel
A recent AITO survey on social media in travel produced interesting insights. Social media
marketing conventionally favours early adopters. The positive influence of social media
on purchase decision is undebatable, especially in the travel industry. A recent survey 84% of
Facebook users admitted in a poll that viewing their friend’s post influenced their future
travel plans.
Facebook is the social media platform of choice across the board, with Instagram following close
behind. Pinterest and Snapchat account for a small number consistent with their current average
age profiles of below 40 and 13–24 respectively. A staggering 30 % of respondents to AITO’s
survey said they didn’t use any social media platforms.
Specialist tour operators use What’s App for business and find it to be the most effective channel
to target customers with a lesser lead time, triggering instant communications.
The chart illustrates the leading eight travel booking brands on YouTube in the UK as of March
2021. According to the number of subscribers on the YouTube channel, the most popular travel
booking brand in the UK was Booking.com with approximately 38,100 thousand subscribers,
followed by STA Travel with 12,100 subscribers.
18Market position and market developments
Figure 10
Leading travel booking brands on You Tube in the UK,
by number of subscribers as of March 2021
Booking.com UK 38,100
4,804,809
STA Travel 12,100
Skyscanner 5,580
Trainline 3,360
On the Beach Holidays 1,290
TravelRepublic 508
LateRooms.com 465
ebookers UK 242
Source: Socialbakers
Cryptocurrencies
More travel suppliers are starting to accept bitcoin, dogecoin and other cryptocurrencies.
Gen Z and younger Gen Alpha travelers will drive crypto acceptance going forward, say industry
players. For example, Travala.com accepts 50 cryptocurrencies, and has structured its new
home-sharing network on a blockchain-like, decentralized platform. Founded as a UK based
crypto-native startup in 2017, Travala.com is in a strong position to provide added value in the
flourishing OTA market. Travala.com has recently agreed partnerships with Expedia.com
and Viator.com.
Google
It was reported in January 2022, by Global Data and the FT, that the online travel industry is
eyeing the rise of Google in the online travel industry with serious concern. For them, the world’s
biggest search engine Google is an important partner in reaching customers. Google’s focus on
online travel was triggered and intensified by the rapid growth rate and future growth potential
of the OTA sector. Google launched its own travel services in 2019 such as its Travel Hub and it
also added flight check-in and hotel booking abilities to Google Assistant, attached lodging
listings to its Maps function and created a search site for hotel availability by destination. Google
does not rank websites based on the quality of the service they offer, but rather promotes the
suppliers that pay the most in auctions for adverts or its own travel products. Travel businesses
feel it is unfair that they have to buy a paid slot if they want to appear above Google’s proprietary
accommodation and flight search. If they do not do that they will appear much lower down the
screen. OTA’s are predicted to rely more and more heavily on Google Search Traffic as they look
to recover from the pandemic. According to Skift Research, the industry spent $16bn on
advertising on Google. Expedia and Booking.com were the biggest spenders. Google is closely
watched by regulators and the practice of prioritizing its own products above other suppliers in
its search results may become a topic in the proposed EU proposed Digital Market Act.
19Market position and market developments
Solo and small group travel
It has been reported in the travel trade media that other key trends being seen by various
operators include growing interest in solo travel and small group travel (as little as 12 and no
bigger than 24), strong interest in festivals; and growing popularity of nature and wildlife trips.
A newly introduced product in lesser-explored areas of mainstream European destinations,
consisting of tours centered around one single ‘hotel-base’, matches the future trend towards
short-haul travel and adds the peace of mind of staying in one hotel throughout. This offers
potential for sending tourists to lesser-visited areas of well-known destinations and for the
Netherlands this poses an opportunity to manifest the P2030 vision, strategy and objectives in
the travel trade arena. An extension of the main travel season is also on the cards and offers
destinations a better spreading of incoming tourism.
Photo: Hollandse Hoogte/ANP Foto
2.5 Market position –
Destination The Netherlands
2.5.1 The UK as a source market 2019–2021
The UK ranks third in terms of visitors to the Netherlands, behind Germany and Belgium. In 2019,
a record 2,4 million visitors were received, who collectively spent around € 5,1 billion. Two-thirds
are leisure visitors and one-third are business travellers. The total number of UK visitors accoun
ted for 8% of all incoming tourists to the Netherlands (7,3 million). Interestingly, in terms of
20Market position and market developments
expenditure the UK ranks second closely behind Germany. In 2020, only 595,000 UK residents
visited the Netherlands. Due to COVID-19 and related travel restrictions the number of UK visitors
declined by 75% compared to 2019. In terms of the total number of incoming visitors to the
Netherlands, the United Kingdom remains the third most important source country behind
Germany and Belgium. In the most positive scenario NBTC expects around 400,000 UK visitors
to have visited the Netherlands in 2021. This still marks a decline of 33% compared to 2020.
Figure 11
Development of UK visitors to the Netherlands (x 1,000)
Guests 2,401
Nights 2,229 2,212 5,136
5,000 2,045 4,592 4,635
1,967 4,202
1,857 3,958
4,000 1,662 1,680 3,675
3,217 3,257
3,000
2,000 595
1,317
209
1,000
513
2012 2013 2014 2015 2016 2017 2018 2019 2020 2021
Source: CBS (2022)
This table illustrates the importance of the UK as a source market for The Netherlands. UK-travelers
mostly visit the main Dutch cities. Pre-pandemic, some 80 % of UK visitors stayed in one of the
major cities when visiting the Netherlands. In 2020, approximately 69% of UK residents stayed in
one of the five big cities. Amsterdam registered by far the most guests; 359,000 in 2020. In total,
almost 60 % of all British overnight guests stayed in the capital city.
Figure 12
Numbers of UK overnight guests
in the 5 big cities, 2019–2021
UK overnight guests +/- compared
in the 5 big cities 2019 2020 2021 to 2020
1. Amsterdam 1,430,000 359,000 93,000 -74%
2. Rotterdam 82,000 19,000 9,000 -53%
3. The Hague 53,000 17,000 5,000 -71%
4. Utrecht 36,000 9,000 3,000 -67%
5. Maastricht 21,000 5,000 2,000 -60%
Source: CBS (2022)
Normally, as can be seen in the pie chart showing the visitors in 2019, UK guests visit the
Netherlands all year around, but slightly more between April and September. This was different
in 2020. Due to the COVID-19 travel restrictions most of the British travellers visited the
Netherlands between January and March, when the travel restrictions were not as extensive.
Since city trips are not very dependent on the travel season, this may provide an opportunity to
encourage UK visitors to consider The Netherlands as a year round destination.
21Market position and market developments
Figure 13
Travel Seasons in the Netherlands
Oct – Dec
Jan – Mar
Oct – Dec Jan – Mar
Jul – Sep
2019 2020
Apr – Jun
Jul – Sep
Source: CBS (2021, 2022)
Figure 14
Overnight guests from the UK per region (x 1,000)
Other regions
(incl. big cities)
2018
Nature area
(South Netherlands) 2019
2020
Coast
Watersports
areas
Nature area
(Central Netherlands)
Nature area
(North-East Netherlands)
Source: CBS (2021) 0 500 1,000 1,500 2,000
Figure 15
Overnight guests from the UK per province (x 1,000)
North Holland
2018
South Holland 2019
2020
North Brabant
Limburg
Utrecht
Gelderland
Overijssel
Flevoland
Groningen
Zeeland
Drenthe
Friesland
Source: CBS (2021)
0 500 1,000 1,500
22Market position and market developments
2.5.2 Relevant target groups
Historically at NBTC, we have mainly focused on travellers from Greater and Central London and
the South East of England. These account for around 25% of all UK travellers to the Netherlands.
Londoners and residents of South-East England tend to be worldly, cosmopolitan, open-minded
and modern. Other key areas in the UK are the City of Manchester and the Greater Manchester
area, the Midlands and Scotland, mainly due to their connectivity and awareness of the Nether
lands and the potential to travel overseas. It is also to be expected, that in the regions mentioned
above, the values and trends of eco-consciousness, sustainability, slow travel, etc. are of great
importance to many inhabitants.
The UK is well located with regard to sustainable travel. For example the Eurostar connection
from London to Rotterdam and Amsterdam serves London and the South East. There are also
ferry connections, namely Harwich (Essex) to Hook of Holland, Hull (Yorkshire) to Rotterdam,
Newcastle (North of England) to Ijmuiden and flight connections into Amsterdam Airport
Schiphol, Rotterdam/The Hague Airport and Eindhoven Airport across the country. Although
ferries and planes are currently considered to be less sustainable compared to the train, these
modes of transport have implemented sustainable initiatives and targets which they need to
meet and they also play a key role in bringing the valuable visitor to the Netherlands.
Key facts about the UK’s valuable visitor
Age breakdown:
· 25–54 years old = 55%
· 55–70 years old = 25%
· 18–24 years old = 20 %
· 55% have children, 45 % are without children, 40 % are single
· Highly educated; mid-high income
· Working status: employed (full time 41% and part time 14%)
The majority (over 50 %) of the target group are:
· Active, innovative/entrepreneurial, confident, tolerant (inclusive), friendly world citizens
and they believe in equality
· they are internationally oriented and interested in different cultures and backgrounds
· they value their freedom and independence, but are not selfish and they are socially minded.
· their career and ambition are somewhat important, but the work context is not about wealth
and status, it is about self-development
Photo: Iris van den Broek
23Market position and market developments
Conclusion
Based on the valuable UK consumer and where they book, namely mostly independently with
an OTA or at a specialist tour operators, NBTC will primarily focus on these two segments.
Furthermore, wholesalers still take an important role due to their reach among tour operators.
Programme diversification and innovation at a wholesaler goes a long way and has a knock on
effect in the tour operator segment.
2.5.3 The Netherlands product offer
The Netherlands is a very popular stand-alone destination or as a combination with Flanders or
Germany. For the UK consumer it is one of the most popular European destinations and there are
a lot of repeat visitors. The Netherlands is close by to the UK and easy to reach by plane, rail and
road. The current Netherlands’ offer in the UK focuses on either city trips or special interest
themes such as art and cultural heritage.
Since travel businesses are extremely revenue focused post pandemic to cover their losses, in the
immediate future, tour operators may be less open to take risks and offer product beyond
Amsterdam and the other big cities that attract 80 % of all visitors from the UK. However, mid to
longer term, they are more likely to combine well known product with lesser known destinations.
OTA’s tend to have a large product portfolio and offer accommodation in these areas, which
offers opportunities to increase awareness for the lesser known regions on their platforms.
Wholesalers have started moving from the classic icons – cheese, tulip and windmills – to more
diversified travel programmes, as the demand is growing. NBTC research has shown that repeat
visitors from the UK are more open to experiencing new product and exploring lesser known
areas of the Netherlands. Pre-pandemic, around one third of yearly UK visitors had been to the
Netherlands on a leisure trip more than once in the past 3 years. Of this group, 55% had visited
the Netherlands 3 times or more.
We already see programmes that promote visiting the Dutch cities outside of high season, which
are more competitively priced and promise a better customer experience. Extending the travel
season is a real opportunity for city trips in general as the sights of a city are not bound to a
particular season. The lower price, better availability and the promise of a less crowded city and
hence a better customer experience is expected to strike a cord with both tour operators and
their customers.
Furthermore, in UK terms, the Netherlands is a very compact country with a great infrastructure,
making it easy to travel around and providing the potential to spread UK tourists across the
country. One way to encourage UK tourists to venture out of the cities is to offer accommodation
in rural areas close to a Dutch city. This would offer lower accommodation prices, increased
availability and may be a welcome change for the customer.
Examples of cities and regions included in wholesalers
and tour operators’ programmes are:
· City trip focus: Amsterdam, Rotterdam, The Hague, Utrecht, Delft, Maastricht
· Battlefields/WWII: Gelderland, Arnhem
· The Golden Age, Dutch Masters (Amsterdam, Delft and The Hague)
· Spring season: Keukenhof, various flower parades
· Holland Classics: Zaanse Schans, Kinderdijk, Volendam
· River Cruises: Gelderland, Amsterdam
· Christmas Markets: Maastricht/Valkenburg
· Christmas Tours: Amsterdam, The Hague, Bergen op Zoom, Oudenbosch
· Floriade (2022)
· Dutch modern architecture tour (Utrecht, Hilversum, Rotterdam)
· Art tour (Haarlem, Amsterdam, Utrecht, Otterlo, The Hague, Amsterdam, Leiden)
· Gastronomy & the Golden Age (Yerseke, Dreischor, Utrecht, Rotterdam, Leiden, Amsterdam,
Lunteren, Zwolle)
24Market position and market developments
2.6 SWOT
Strengths Weaknesses
· Large and stable industry · UK has third country status since Brexit
· Outbound travel into Europe is strong · Preference for bestsellers/classics due to focus on revenue
recovery
· Diverse variety of operators
· Travel businesses short staffed/tight capacity following
· Strong demand of 50+ segment
pandemic
· Positive travel sentiment and pent up demand
· Preference for tourist hotspots due to focus on revenue recovery
· UK is close in distance to NL
· Pre-pandemic, Amsterdam was the most visited place in NL by
· British people have a fondness for NL UK travellers
· British people are aware of NL as a destination · Around 15% of UK population over the age of 12 still not fully
vaccinated (2 doses) against COVID-19
· Well established direct travel network to NL, incl. train, air and sea
· Country often referred to as Holland instead of NL
· Unemployment rate remains low at around 4.3%, similar to
prepandemic level · NL is mainly known for its traditional icons in the UK
· Over 85% of Brits aged 12 and over have had 2 COVID vaccines · British government currently unstable - next UK general election
(April 2022) is in May 2024
· Inflation jumped to 7 % in March 2022 and may reach 8% or
higher this year
Opportunities Risks
· Appetite for diversification of NL-programmes and tours · Strong competition from cheaper European destinations (Berlin,
Prague, etc.)
· Diverse range of operators ready to extend existing programs
and introduce new programs in line with P2030 · Impact of Brexit; including tighter immigration controls in NL and
3-month passport validity requirements
· British people are still keen to travel to Europe despite Brexit
and COVID-19 worries · Presence of COVID-19 and Ukraine war
· Brits are interested in visiting less populated/busy areas in · Potential for COVID-19 travel restrictions to tighten at any time in
addition to cities while overseas UK and/or NL
· GBP stronger than the euro · By 2050, 1 in 4 people in the UK will be aged 65 years and over
· UK population is becoming more conscious of sustainability · Potential weakening of GBP against the euro
and its importance
· UK employment rate estimated at 75.4%, slightly lower than
pre-pandemic level
253 Summary
A summary of the main topics presented in this
report relating to the status quo of the UK travel
industry and the UK as an important travel source
market for the Netherlands.
26Summary
A positive outlook for The Netherlands
The global travel recovery (expected to reach pre-pandemic levels by 2025) is well under way
and the travel enthusiasm of UK residents is as strong as ever. Despite initial concerns, Brexit did
not have any considerable effect on consumer travel behaviour. While travel businesses are still
recovering from the strains caused by the pandemic, they are now confronted with the impact of
current global events: the war in Ukraine, inflation and the escalation of fuel prices. Meanwhile,
by and large UK holidaymakers are not deterred from travel. Holidays remain a spending priority
and people say they would cut back on other things before their holiday spend. Consumers’
booking behaviour has changed throughout the pandemic giving shorter booking lead times
and more online bookings across all age groups, masking a trend that is here to stay. The more
favourable booking conditions offered by tour operators and travel agents alike are now being
considered as a standard service by customers and will be difficult to reverse. Tech-savvy UK
holidaymakers have even become more skilled in their booking behaviour. They have embraced
the multichannel approach in the various stages of the booking process and may switch back
and forth between various devices – tablet, smartphone, chat, phone, before they finally make
the booking.
For the UK consumer, the Netherlands is one of the most popular European destinations and
there are many repeat visitors. The Netherlands is in close proximity to the UK and easy to reach
by plane, rail and road. In UK terms, the Netherlands is a very compact country with a great
infrastructure, making it easy to travel around and providing the potential to spread UK tourists
across the country. The current Netherlands’ offer in the UK focuses on either city trips or special
interest themes such as art and cultural heritage. Since travel businesses are extremely revenue
focused post pandemic to cover their losses, in the immediate future, tour operators may be less
open to take risks and offer product beyond Amsterdam and the other big cities that attract 80 %
of all visitors from the UK. However, mid to longer term, they are more likely to combine well
known product with lesser known destinations. OTA’s tend to have a large product portfolio and
offer accommodation in areas outside the main cities, which offers opportunities to increase
awareness for the lesser known regions on their platforms. Wholesalers have started moving
from the classic icons – cheese, tulip and windmills – to more diversified travel programmes, as
the demand is growing. Specialist tour operators are the perfect party to launch new product
e.g. more sustainable-orientated programmes or innovative cultural itineraries.
The travel trade concept 2022/23 published by NBTC gives insights into our travel trade strategy
and planned activities for 2022 and beyond.
27Sources
ABTA Holiday Habits Research 2020 Survey Results
ABTA Holidays Habits Report 2019
AITO Travel Insights 2020
BBC.co.uk
Businesswire Global Data
europarl.europa.eu
deloitte.com
ft.com
Globaldata.com
Mintel UK Holiday Planning and Booking Process Market Report 2021
Office of National Statistics
The Coach Tourism Association (Coach Tourism Consumer Research Analysis)
Tourism Alliance UK Tourism Recovery December 2020
Travel Weekly Insight Annual Report 2019–2020
UNWTO World Tourism Barometer
WTM Industry Report
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