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The UK economic recovery is producing a release of pent-up demand for holidays, according to market analyst Mintel.
Holidaymakers will “upgrade their holidays, spend more on each trip and take additional trips each year”, according to Mintel’s British Lifestyles 2014 report, published today.
The report notes: “People are more likely to have cut back on than increased spending on holidays in 2013. However, spending habits are significantly more positive than they were in Mintel’s British Lifestyles 2013 report.
“Mintel’s research finds pent-up demand for many discretionary areas of spend being released in 2014.”
Over the next five years Mintel expects growth in the value of the overseas holiday market to be more than double the growth in the domestic market “as holidaymakers return overseas”.
The report notes spending on overseas holidays contracted by 11.4% between 2008 and 2013, while spending on UK holidays rose almost 25%.
It forecasts growth in the value of holidays will outpace volume growth.
However, a consumer poll which forms part of the research found 43% respondents see “travelling to new places or going on new holidays” as a goal they “would like to achieve but may not”, alongside learning a new skill, eating more healthily and taking more exercise.
The Lifestyles report covers 16 market sectors, including overseas holidays, noting: “London tops the table for consumer optimism.”
Mintel suggests: “Now consumers are feeling more confident about their financial situation, they are set to spread their wings further afield. Demand for holidays is robust in the consciousness of the UK consumer and even those who are less affluent or struggling financially are likely to have taken a holiday in 2013.”
It notes: “Almost a quarter (22%) of Brits say they would take a holiday at least once a year regardless of their financial situation.”
Mintel’s British Lifestyles 2014: The British Dream is available from Mintel, priced £2,195. It covers sectors including in-home and out-of-home food, drinks, beauty and healthcare, clothing, pharmaceuticals, technology, leisure and entertainment, home and garden, and transport.