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Prepared by Trajectory Beyond Staycation April 2015

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Page 1: Beyond Staycation April 2015 - VisitEngland · March 2014 Sept 2014 Feb 2015 I feel much worse off than I did I feel slightly worse off than I did I feel the same as I did I feel

Prepared by Trajectory

Beyond Staycation April 2015

Page 2: Beyond Staycation April 2015 - VisitEngland · March 2014 Sept 2014 Feb 2015 I feel much worse off than I did I feel slightly worse off than I did I feel the same as I did I feel

Where were we?

Expectations in March 2014

• Consumers aware of the recovery and moving out of a recessionary mindset, showing higher levels of confidence and lower concern – but they hadn’t started to feel the direct impacts of recovery yet

• This was reflected in holiday expectations for 2014: while there was a desire to take more long breaks abroad in the future, there was no shift in 2014 plans (only 0.6% expected to switch domestic trips for foreign ones)

Expectations in Sept 2014

• As the downturn officially ended, confidence continued to improve and people felt much more secure in their own finances. Cutting back behaviours continued to wane – with the proportion saying they were spending less on holidays falling by 5%

• Consumers displayed a greater willingness to plan big for 2015 (although many were still cautious) and domestic breaks looked likely to be short rather than long

Page 3: Beyond Staycation April 2015 - VisitEngland · March 2014 Sept 2014 Feb 2015 I feel much worse off than I did I feel slightly worse off than I did I feel the same as I did I feel

What actually happened? Cautious consumers look to make the most of the trips they can take

• Signs of optimism at the end of last year are evaporating as consumers are concerned the recovery may be passing them by

• This has led to increased cutting back behaviours in everyday spending – especially around groceries and energy, but this prudence is helping to fund spending on leisure and holidays

• Holidays in 2014 changed only slightly on 2013, with a small shift towards longer trips abroad, at the expense of long trips in England. The England short break market remains the same.

• For those that have holidayed in England, this wave provides further evidence that the appeal of England goes beyond finances (even though they are important) – with a rise in the number returning to places they’d liked before

• Significant number of trips are malleable – either because they are impulsive, and specific triggers are powerful motivators, or because they change during the planning process – and even routine breaks can change in this way

• In the future – outlook remains cautious, with a clear desire amongst consumers for longer trips abroad and as much else as they can get.

Page 4: Beyond Staycation April 2015 - VisitEngland · March 2014 Sept 2014 Feb 2015 I feel much worse off than I did I feel slightly worse off than I did I feel the same as I did I feel

The national economy is continuing its recovering from the downturn

2.8 3.0 2.6

-0.3

-4.3

1.9

1.6

0.7

2.6 2.6 2.8 2.7 2.7 2.4 2.3 2.4

-5.0

-4.0

-3.0

-2.0

-1.0

0.0

1.0

2.0

3.0

4.0

2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020

UK GDP growth, % year on year

Real

Forecast

Source: Oxford Economics 2014

Page 5: Beyond Staycation April 2015 - VisitEngland · March 2014 Sept 2014 Feb 2015 I feel much worse off than I did I feel slightly worse off than I did I feel the same as I did I feel

Inflation is falling, while wages are (slowly) growing (for some)

-1.0

0.0

1.0

2.0

3.0

4.0

5.0

6.0

7.0

2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018

Wage and price inflation growth, % year on year

Consumer Price Index Consumer Price index - forecast

Wages and salaries - real Wages and salaries - forecast

Source: Oxford Economics 2014

Page 6: Beyond Staycation April 2015 - VisitEngland · March 2014 Sept 2014 Feb 2015 I feel much worse off than I did I feel slightly worse off than I did I feel the same as I did I feel

But uncertainty and instability remain at home and abroad

Page 7: Beyond Staycation April 2015 - VisitEngland · March 2014 Sept 2014 Feb 2015 I feel much worse off than I did I feel slightly worse off than I did I feel the same as I did I feel

Majority still not feeling the recovery - Younger 18-34 most likely to be feeling better off (26%) - Public sector workers most likely to be feeling worse (24%)

3% 3% 2%

15% 19% 18%

52%

58% 56%

21%

14% 15%

10% 7% 8%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

March 2014 Sept 2014 Feb 2015

I feel much worse off than I did I feel slightly worse off than I did

I feel the same as I did I feel slightly better off than I did

I feel much better off than I did

Extent to which people are feeling the economic recovery (%)

Source: VisitEngland Staycation Monitor Feb 2015 / Base 1,002

Q2d There has been a lot of talk lately about the economy recovering from the downturn of the last few years. To what extent are

you feeling the recovery?

Have nots:

• Feeling worse off

• Worried

• Unlikely to be taking any holidays

On the fence:

• Haven’t felt the recovery

• Concerned, but optimistic

• Have cut back on holidays in some way

Haves:

• Feel fine & optimistic

• Not really concerned (what recession?)

• Taking holidays and plan big for 2015

and beyond

Page 8: Beyond Staycation April 2015 - VisitEngland · March 2014 Sept 2014 Feb 2015 I feel much worse off than I did I feel slightly worse off than I did I feel the same as I did I feel

Concerns start to rise – but little evidence of direct impact - Public sector workers consistently more concerned/worried - ‘Squeezed middle’ demographically also more likely to be concerned

61% 60%

55%

49%

41%

29%

40%

59% 59%

55%

47%

39%

29%

40%

50% 50%

44% 42% 42%

38% 37%

53% 53%

44% 45%

35% 34%

30%

0%

10%

20%

30%

40%

50%

60%

70%

I am veryconcerned about

the downturn

I am concernedabout

unemployment

I am worriedabout making

ends meet

The downturn isgoing to get

worse before itgets better

I'm fed up withhearing aboutthe downturn

We are over theworst of thedownturn

The country I livein is one of theworst affected

Sep-13

Mar-14

Sep-14

Feb-15

% agreeing with each of the following statements, Sept 13- Feb 15

Source: VisitEngland Staycation Monitor Feb 2015 / Base 1,002

Q1 To what extent do you personally agree or disagree with each of the following statements about the economic downturn?

Page 9: Beyond Staycation April 2015 - VisitEngland · March 2014 Sept 2014 Feb 2015 I feel much worse off than I did I feel slightly worse off than I did I feel the same as I did I feel

Greater concern but only slightly more say they are affected - While concern has risen, this has not translated into direct impact

- For many, the concern may be a result of worrying that the recovery may pass them by

15% 17% 18% 17% 19% 20% 24% 24% 25% 25% 27% 25% 27% 18% 19%

47% 52% 50% 52% 53% 51%

54% 52% 51% 53% 52% 55% 52%

51% 53%

28% 22% 19% 14%

16% 20% 16% 17% 15% 13% 13% 10% 10%

13% 15%

10% 9% 13% 17% 12% 9% 6% 6% 9% 8% 8% 10% 11% 18% 13%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Oct/Nov08

Feb-09 Jun-09 Oct-09 Feb-10 Sep-10 Mar-11 Sep-11 Feb-12 Sep-12 Feb-13 Sep-13 Mar-14 Sep-14 Feb-15

It hasn't affected me yet, and I'm really not worryingIt hasn't affected me yet, but I'm concerned that it might doIt's affected me a littleIt's seriously affected me

Source: VisitEngland Staycation Monitor Feb 2015 / Base 1,002

Q2a Which of the following best describes your feelings about the economic downturn?

% agreeing with each of the following statements, Oct 08 – Feb 15

Page 10: Beyond Staycation April 2015 - VisitEngland · March 2014 Sept 2014 Feb 2015 I feel much worse off than I did I feel slightly worse off than I did I feel the same as I did I feel

More people expect no change in the short term – and confidence is down for the next 3-4 years - Only 17% report feeling more optimistic now than they did a year ago

9% 9% 9%

32% 31% 28%

29% 33% 32%

16% 14% 17%

7% 8% 6%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Mar-14 (3-4 years) Sep-14(3-4 years) Feb-15 ( 3-4 years)

Don't know Much worse A little worse No better or worse A little better Much better

Source: VisitEngland Staycation Monitor Feb 2015 / Base 1,002

Q2d How do you think you personal financial situation will change in the coming year / next three or four years? Do you think it

will become...

View of personal financial situation next year/next 3-4 years (%)

Page 11: Beyond Staycation April 2015 - VisitEngland · March 2014 Sept 2014 Feb 2015 I feel much worse off than I did I feel slightly worse off than I did I feel the same as I did I feel

Optimists and pessimists

Optimists: those believing that we are over the worst of the downturn (34% ,-4% on Sept)

• 39% of men and just 29% of women are optimists. More likely to be those working FT (37%) than PT (31%)

• Some concerns still exist – 20% of those worried about making ends meet are also optimists

• Slightly more freedom in holiday behaviours – 41% of those that had a foreign holiday are optimists

Pessimists: those believing that the economic situation will get worse before it gets better (45% ,+3% on Sept)

• Even age and gender split

• Those working PT likely to be pessimists (51%)

• Pessimism likely to be derived from own experience – 70% of people who feel seriously affected are pessimists

• More than half of those who took no holidays in 2014 are pessimists

Page 12: Beyond Staycation April 2015 - VisitEngland · March 2014 Sept 2014 Feb 2015 I feel much worse off than I did I feel slightly worse off than I did I feel the same as I did I feel

Most at least slightly aware of the exchange rate – but only 18% follow it closely

18%

37%

25%

20%

0%

5%

10%

15%

20%

25%

30%

35%

40%

Very awareof it - I

follow itclosely

Aware of it -I look at it

from time totime

Slightlyaware of it -I only look ifI'm planning

to goabroad

Not awareof it at all

• More are completely unaware of it than follow it closely

• Level of awareness varies widely by holiday behaviour:

• The proportion who follow it closely:

• 28% of those who went abroad in 2014

• 22% of Switchers

• 9% of England Loyalists

Source: VisitEngland Staycation Monitor Feb 2015 / Base 1,002

Q19 To what extent would you say you are aware of the exchange rate as it affects the value of the pound compared to other currencies

Page 13: Beyond Staycation April 2015 - VisitEngland · March 2014 Sept 2014 Feb 2015 I feel much worse off than I did I feel slightly worse off than I did I feel the same as I did I feel

Cutting back behaviours

• This wave has shown a slight shift in cutting back priorities:

Fewer people say they are cutting out little luxuries (down 9%)

Fewer people say they are spending less on holidays (down 2%)

• However, the length and depth of the downturn has caused some behaviours to become more entrenched – particularly everyday consumer coping mechanisms. In addition, many of those cutting back are doing so because of ongoing financial pressures

• Of those who are still cutting back on holidays, the measures are less extreme

Fewer people say they are taking fewer holidays (down 3%)

Fewer people say they are taking no holidays (down 4%)

Consumers are less likely to be cutting back on leisure spending, and are funding this through greater emphasis on everyday savings. For those that are still cutting back, the majority don’t

expect to stop soon – although the proportion who do is increasing.

Page 14: Beyond Staycation April 2015 - VisitEngland · March 2014 Sept 2014 Feb 2015 I feel much worse off than I did I feel slightly worse off than I did I feel the same as I did I feel

Changes to everyday behaviour helping funding treats & trips - Those who are cutting back more on everyday spending are more likely to feel affected by the downturn (24% seriously), and as likely as average to feel confident about the next year - They are also wary about the future – 53% think the downturn will get worse before it gets better - This indicates that this behaviour is motivated by finances rather than a discretionary approach to cost-cutting and thrift

46%

34%

51%

35%

18%

37% 32%

53%

38%

21%

0%

10%

20%

30%

40%

50%

60%

Cutting out littleluxuries

Spending less onholidays

Being more careful inthe supermarket

Using a cheapersupermarket

Changing energysupplier

Sep-14 Feb-15

Source: VisitEngland Staycation Monitor Feb 2015 / Base 1,002

Q3 In which, if any, of the following ways are you cutting back the amount you spend?

Cutting back less… Cutting back more

Page 15: Beyond Staycation April 2015 - VisitEngland · March 2014 Sept 2014 Feb 2015 I feel much worse off than I did I feel slightly worse off than I did I feel the same as I did I feel

The end of holiday cutting back is in sight for more… …but everyday behaviours remain high, and increasingly entrenched

59% 60% 55%

75%

52% 52%

47%

60%

0%

10%

20%

30%

40%

50%

60%

70%

80%

Choosingcheaper

destinations inEngland/UK

Taking holidaysin England/UK

rather thanabroad

Spending lesson going out on

holiday

Cheaper travel

Sep-14 Feb-15

Source: VisitEngland Staycation Monitor Feb 2015 / SMALL SAMPLE Base 40-111 (only those who are spending less on holidays)

Q4a How long will you be doing them?

73%

83%

75%

51%

85% 81%

73%

53%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

Using acheaper

supermarket

Being morecareful with

energy

Being morecareful in thesupermarket

Spending lesson holidays

Sep-14 Feb-15

% not expecting to stop holiday

cutting back behaviour

% not expecting to stop general

cutting back behaviour

Page 16: Beyond Staycation April 2015 - VisitEngland · March 2014 Sept 2014 Feb 2015 I feel much worse off than I did I feel slightly worse off than I did I feel the same as I did I feel

Holiday Behaviour 2014

Page 17: Beyond Staycation April 2015 - VisitEngland · March 2014 Sept 2014 Feb 2015 I feel much worse off than I did I feel slightly worse off than I did I feel the same as I did I feel

Slight decline in domestic breaks made up by rise abroad - Short breaks in England same as 2013, long down 3% - All trips abroad up by 4% on 2013

Source: VisitEngland Staycation Monitor Feb 2015 / Base 1,002

Q6a Which of the following holidays/breaks did you take in 2014?

Holidays taken in 2013-14 (%) 2013

Long Short Total

England 15 52 58

Rest of UK 6 16 20

Any UK 19 58 64

Abroad 33 21 47

No holidays 22

2014

Long Short Total

12 52 57

5 18 22

16 59 64

36 23 51

21

Page 18: Beyond Staycation April 2015 - VisitEngland · March 2014 Sept 2014 Feb 2015 I feel much worse off than I did I feel slightly worse off than I did I feel the same as I did I feel

Less compromise in 2014 than 2013 7% more people getting the trip they wanted at the price they wanted

22%

15%

49%

14% 17% 16%

56%

11%

0%

10%

20%

30%

40%

50%

60%

I had to compromise onsome aspect of the trip in

order to stay within mybudget

I had to spend more than I'dplanned in order to get the

trip I wanted

I booked the holiday Iwanted at the price I wanted

I didn't book - someone elsedid

Mar-14 Feb-15

Source: VisitEngland Staycation Monitor Feb 2015 / Base 574

Q8d Thinking of your last trip in England, which of the following statements best describes your experience when booking?

Page 19: Beyond Staycation April 2015 - VisitEngland · March 2014 Sept 2014 Feb 2015 I feel much worse off than I did I feel slightly worse off than I did I feel the same as I did I feel

Drivers of domestic holidays: beyond cost

• The idea of England as a ‘cheaper’ option is waning, with fewer consumers – especially for long breaks – saying that this was a major driver in their decision to stay at home

• Instead, England has other strengths driving domestic tourism – including liking England (the top reason for long breaks and now a bigger reason for short ones), it being easier and less hassle and the availability of discounts

• In addition, for long breaks, a legacy effect of the staycation is emerging – with 1 in 3 saying they returned to a place they liked before

Cost remains an important reason consumers holiday in England rather than abroad, but it is rarely the sole, or even the dominant

driver. The growth in domestic holidays in recent years is driving repeat visits, as are the established trends of convenience, ease

and liking England

Page 20: Beyond Staycation April 2015 - VisitEngland · March 2014 Sept 2014 Feb 2015 I feel much worse off than I did I feel slightly worse off than I did I feel the same as I did I feel

MAIN reason for domestic short break

9%

11%

12%

13%

21%

12%

30%

37%

0% 10% 20% 30% 40%

I like England

Financial - cheaperthan abroad

I got a gooddiscount/special…

To go somewherenew/explore…

It's wherefriends/family were

Net:Easy/convenient

Net: Financial

Net: Pro England

MAIN reason for domestic long break

The appeal of England is a bigger driver than finances

Source: VisitEngland Staycation Monitor Feb 2015 / Base 522/181

Q6d What was your main reason for taking a trip in England rather than abroad?

6%

9%

15%

18%

23%

9%

18%

64%

0% 20% 40% 60% 80%

Easier to holiday inEngland/hassle…

To go somewherenew/explore…

Financial - cheaperthan abroad

I like England

To return to a placeI'd liked before

Net:Easy/convenient

Net: Financial

Net: Pro England

Page 21: Beyond Staycation April 2015 - VisitEngland · March 2014 Sept 2014 Feb 2015 I feel much worse off than I did I feel slightly worse off than I did I feel the same as I did I feel

Financial reasons are less prominent than liking England - Discounts for Short Breaks up 5% to 20% YOY

- 13% drop in those saying financial reasons for a long break in England - 5% rise in taking a long trip in England to return somewhere they liked

35%

28%

36%

57%

25%

24%

36%

70%

0% 20% 40% 60% 80%

Net: Other

Net: Easy/convenient

Net: Financial

Net: Pro England

Reasons for short/long breaks in England (net %)

Long trips

Short breaks

Source: VisitEngland Staycation Monitor Feb 2015 / Base 522/181

Q6d What was your reason for taking a break in England in 2014?

Page 22: Beyond Staycation April 2015 - VisitEngland · March 2014 Sept 2014 Feb 2015 I feel much worse off than I did I feel slightly worse off than I did I feel the same as I did I feel

For those holidaying in England more (i.e. switchers), finances dominate - Cost of passports/travel insurance a barrier to trips abroad - Other issues also emerge – caring responsibilities/avoiding hassle - As well as positive reasons to stay in the UK

12%

14%

14%

15%

22%

34%

44%

58%

13%

34%

65%

90%

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

The cost of passports is too high

It's easier with a young family

The cost of travel insurance

Too much hassle to go abroad

It's easier to get offers for England (or the UK)

I like England/the UK

It's easier to take short breaks in England

Financial - Cheaper than going abroad

Net: Other

Net: Pro England

Net: Easy/convenient

Net: Financial

Reasons for holidaying more in the UK (%)

Source: VisitEngland Staycation Monitor Feb 2015 / Base 170 (only those holidaying more in England/the UK)

Q5b You said you’re holidaying more in England/the UK. Why is this?

Page 23: Beyond Staycation April 2015 - VisitEngland · March 2014 Sept 2014 Feb 2015 I feel much worse off than I did I feel slightly worse off than I did I feel the same as I did I feel

Planning and booking

Page 24: Beyond Staycation April 2015 - VisitEngland · March 2014 Sept 2014 Feb 2015 I feel much worse off than I did I feel slightly worse off than I did I feel the same as I did I feel

Planning and booking – what we already know

• Qualitative research last year identified 3 key stages of planning a short trip:

Need – wanting to go away

Ability – able to go away (time/cost)

Trip specific trigger – includes specific location/activity and deal

• Furthermore, 3 key types of holiday emerged based on the nature of the planning involved

Impulsive / last minute trips – with little research, often somewhere known

Considered / planned trips – somewhere new, longer lead time, more planning

Routine / regular trips – annual or traditional event, same place/people

Page 25: Beyond Staycation April 2015 - VisitEngland · March 2014 Sept 2014 Feb 2015 I feel much worse off than I did I feel slightly worse off than I did I feel the same as I did I feel

1 in 5 short breaks in England are spur of the moment - Women more likely to take last minute trips abroad (16%/9%) - Younger more likely to take impulsive trips everywhere - Routine trips dominated by older

20% 5%

16% 9% 13% 7%

71%

78%

74% 76%

80% 79%

9% 18%

10% 15% 7%

14%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Shortbreak inEngland

Longholiday inEngland

Shortbreak in

rest of UK

Longholiday inrest of UK

Shortbreak

abroad

Longholidayabroad

Routine/Regular

Considered/Planned

Impulsive/last minute

Source: VisitEngland Staycation Monitor Feb 2015 / Base: 53-522

Q6ab:For each holiday you took, please say if this trip was impulsive, considered or routine

Page 26: Beyond Staycation April 2015 - VisitEngland · March 2014 Sept 2014 Feb 2015 I feel much worse off than I did I feel slightly worse off than I did I feel the same as I did I feel

Impulsive trip takers: Profile • Demographically, impulsive trip takers tend to be younger and female –

especially for domestic short breaks

• While they are as likely to feel affected by the downturn, they are more optimistic about the future

18%

22%

25%

17% 17%

21%

24% 25%

17%

23%

20%

0%

5%

10%

15%

20%

25%

30%

Impulsive short breaks in England (% of all who took a domestic short break)

Source: VisitEngland Staycation Monitor Feb 2015 / Base: 522

Q6ab:For each holiday you took, please say if this trip was impulsive, considered or routine

Page 27: Beyond Staycation April 2015 - VisitEngland · March 2014 Sept 2014 Feb 2015 I feel much worse off than I did I feel slightly worse off than I did I feel the same as I did I feel

28% of short breaks and 39% of long trips change during the planning process - For short breaks, this is less likely to be for those cutting back on holiday spend (76%

go to the original place) - Strong age bias – older least likely to change, younger most likely

11% 12%

4%

72%

16% 16%

7%

61%

0%

10%

20%

30%

40%

50%

60%

70%

80%

Yes - I was originallythinking about anotherdestination in England

Yes - I was originallythinking about another

destination in the rest ofthe UK

Yes - I was originallythinking about another

destination abroad

No - I went to the samedestination I was thinking

of at the start

When you started thinking about your last trip in England, were you considering going to another destination than the one you actually went to?

Short break Longer holiday

Source: VisitEngland Staycation Monitor Feb 2015 / Base: 475/99

Q8f: When you started thinking about your last trip in England, were you considering going to another destination than the one you actually

went to?

Page 28: Beyond Staycation April 2015 - VisitEngland · March 2014 Sept 2014 Feb 2015 I feel much worse off than I did I feel slightly worse off than I did I feel the same as I did I feel

Trip-changers • Like the impulsive short break takers, trip changers are also younger, but

more likely to be male, and more likely to be in FT work

• Significant numbers of those who feel affected by the downturn are likely to change their trip

30%

25%

41%

30%

13%

36% 35%

26%

31%

25% 28%

0%5%

10%15%20%25%30%35%40%45%

Trip changers (% of all who took a domestic short break)

Source: VisitEngland Staycation Monitor Feb 2015 / Base: 475

Q8f: When you started thinking about your last trip in England, were you considering going to another destination than the one you actually

went to?

Page 29: Beyond Staycation April 2015 - VisitEngland · March 2014 Sept 2014 Feb 2015 I feel much worse off than I did I feel slightly worse off than I did I feel the same as I did I feel

Even routine trips can change during the planning process

16% 12%

5%

13%

13%

13%

3%

5%

2%

0%

5%

10%

15%

20%

25%

30%

35%

Impulsive Considered Routine

% of each type of trip that changed in some way during the planning

process

Another destination abroadAnother destination in UKAnother destination in England

• Impulsive trips are the most likely to be altered (32%)– but only marginally more so than considered ones (30%)

• This is likely to be a result of the lack of flexibility last minute trips may have – often tied to specific deal or opportunity

• Considered trips, on the other hand, are more open to change due to the longer lead in time

• Even routine trips can change (20%) – indicating that the ‘routine’ element is dictated as much by time and people as by place

Source: VisitEngland Staycation Monitor Feb 2015 / Base: 170

Q8f: When you started thinking about your last trip in England, were you considering going to another destination than the one you actually

went to?

Page 30: Beyond Staycation April 2015 - VisitEngland · March 2014 Sept 2014 Feb 2015 I feel much worse off than I did I feel slightly worse off than I did I feel the same as I did I feel

Fewer short breaks booked last minute - Almost a third of domestic short breaks booked a month or less in advance - Younger more likely to book a week or less in advance (15%) & more likely overall (36%) - Switchers less likely to wait until a month before (20%)

7%

23%

32%

23%

11%

4%

2%

10%

26%

32%

16%

8% 7%

1%

0%

5%

10%

15%

20%

25%

30%

35%

Over 6 months Between 6 and 3months

Between 3months and 1

month

Between 4 and 2weeks

Between 2weeks and 1

week

1 week or less The day beforeor closer

How far in advance did you book the trip? (domestic short breaks)

Mar-14 Feb-15

Source: VisitEngland Staycation Monitor Feb 2015 / Base: 475

Q8f: How far in advance did y6ou book it/was it booked?

Page 31: Beyond Staycation April 2015 - VisitEngland · March 2014 Sept 2014 Feb 2015 I feel much worse off than I did I feel slightly worse off than I did I feel the same as I did I feel

Slight fall in last minute long breaks - Vast majority booked at least a month in advance - Younger most likely to do so (29%) - Those spending less on holidays also likely to book later (23%)

23%

27%

29%

10% 9%

2%

0%

26% 25%

30%

12%

5%

1% 0%

0%

5%

10%

15%

20%

25%

30%

35%

Over 6 months Between 6 and3 months

Between 3months and 1

month

Between 4 and2 weeks

Between 2weeks and 1

week

1 week or less The day beforeor closer

How far in advance did you book the trip? (domestic long breaks)

Mar-14 Feb-15

Source: VisitEngland Staycation Monitor Feb 2015 / Base: 99

Q8f: How far in advance did y6ou book it/was it booked?

Page 32: Beyond Staycation April 2015 - VisitEngland · March 2014 Sept 2014 Feb 2015 I feel much worse off than I did I feel slightly worse off than I did I feel the same as I did I feel

Last minute bookers • Younger and female skew, although older are almost as likely to book a month

in advance or less

11%

17%

19%

12% 11%

16% 15% 15%

14%

25%

33% 33%

27%

29% 30%

29%

25%

29%

0%

5%

10%

15%

20%

25%

30%

35%

Men Women 18-34 35-54 55+ Optimisticabout

finances

Things willget worse

Seriouslyaffected

Total

Last minute bookers, by time of booking (% of all taking any England trip)

2 weeks or less 1 month or less

Source: VisitEngland Staycation Monitor Feb 2015 / Base: 574

Q8f: How far in advance did you book the trip?

Page 33: Beyond Staycation April 2015 - VisitEngland · March 2014 Sept 2014 Feb 2015 I feel much worse off than I did I feel slightly worse off than I did I feel the same as I did I feel

Booking & planning: opportunities to influence domestic breaks

• There is potential to influence a significant number of trips – in total, 16% of all trips taken in 2014 were impulsive, and 30% of domestic trips were different to the original plans

• Across last minute bookers, trip changers and impulsive trip changers, common characteristics emerge – these consumers are likely to be younger, in work, and although cautious about the recovery, beginning to feel more optimistic about their future

• In line with our qualitative findings, therefore, consumers are receptive to opportunities to maximise their holidays (and spending behaviour analysis suggests they are gearing their spending proactively towards this), with last minute and impulsive trips the most suggestible and easy to influence

• However, even routine trips, and those with longer lead in times are subject to change – with price, deals and destination all moveable as long as the trip purpose, or company remains the same

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Holidays in 2015 & beyond

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Balance still lies with those expecting to take less

11% 5% 6% 4% 8%

13%

54%

45% 41% 41%

41% 43%

13%

15% 13%

13%

18%

18%

22%

34% 40% 43%

33% 27%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Short breaks inEngland

Long holidays inEngland

Short breaks in restof UK

Long holidays inrest of UK

Short breaksabroad

Long holidaysabroad

For each of the following types of holiday, do you expect to take more, less or the same in 2015 as you did in 2014?

More in 2015 than in 2014 About the same in 2015 as in 2014 Less in 2015 than in 2014 Don't know

Source: VisitEngland Staycation Monitor Feb 2015 / Base: 931

Q11a: For each of the following types of holiday, do you expect to take more, less or the same in 2015 as you did in 2014?

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Expecting to take more

14%

5%

7%

14%

11%

5%

8%

13%

0%

2%

4%

6%

8%

10%

12%

14%

16%

Shortbreaks inEngland

Longholidays inEngland

Shortbreaksabroad

Longholidaysabroad

Feb-14 Feb-15

Expecting to take less

YOY decline in those expecting to take fewer domestic breaks - But pessimism increased since end of summer

16%

19% 19% 19%

13%

15%

18% 18%

0%

2%

4%

6%

8%

10%

12%

14%

16%

18%

20%

Shortbreaks inEngland

Longholidays inEngland

Shortbreaksabroad

Longholidaysabroad

Feb-14 Feb-15

Source: VisitEngland Staycation Monitor Feb 2015 / Base: 931

Q11a: For each of the following types of holiday, do you expect to take more, less or the same in 2015 as you did in 2014?

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Reasons for more short breaks

14%

15%

19%

22%

23%

24%

0% 10% 20% 30%

I'd like to go abroad but can'tafford to

I prefer taking more shortbreaks and fewer long

holidays

I plan on seeing friends/family more this year

Easy to book at last minute

Nice to go somewhere youfeel you know

I really like taking shortbreaks in England, don't see

why to stop

Reasons for more long holidays

The appeal of England is driving domestic trips - Practical and financial reasons decline – although this could be related to slight decline in those expecting to take more

11%

15%

17%

20%

28%

28%

0% 10% 20% 30% 40%

Getting back to normal

Easier to book at last minute

I plan on seeing friends/ familymore this year

I want to support England

Nice to go somewhere youfeel you know

I really like taking longholidays in England, don't see

why to stop

Source: VisitEngland Staycation Monitor Feb 2015 / SMALL SAMPLE: 100 / 46

Q11a: Why do you expect to take more holidays in England this year?

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Reasons for fewer short breaks

10%

13%

16%

19%

19%

39%

13%

8%

8%

18%

14%

41%

0% 20% 40% 60%

I'd rather just take it abroad

Weather puts me off

Other

I want to prioritise longholidays

Nice to go somewhere new

I feel worse off financially

Mar-14

Feb-15

Reasons for fewer long holidays

Finances dominate those taking fewer domestic trips - 18% say long holidays don’t appeal - others want to go somewhere new

10%

10%

15%

18%

22%

39%

7%

5%

14%

10%

22%

42%

-20% 0% 20% 40% 60%

Other

England doesn't excite me

Weather puts me off

Long holidays in England don'tappeal

Nice to go somewhere new

I feel worse of financially

Mar-14

Feb-15

Source: VisitEngland Staycation Monitor Feb 2015 / SMALL SAMPLE: 120 / 141

Q11a: Why do you expect to take less holidays in England this year?

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Declining numbers expect their domestic break to be their main one - Consumers able to go abroad increasingly prioritising the long break

- Over a quarter will take their main holiday in England

16% 14%

3% 6%

10%

42%

10%

15%

11%

3% 4%

12%

45%

10%

0%

5%

10%

15%

20%

25%

30%

35%

40%

45%

50%

Short holiday inEngland

Long holiday inEngland

Short holiday inrest of UK

Long holiday inrest of UK

Short holidayabroad

Long holidayabroad

None of them, Idid not have/will

not have amain/big holiday

Which of the holidays/breaks that you have taken this year/ expect to take next year will be your main or ‘big’ holiday?

Mar-14 Feb-15

Source: VisitEngland Staycation Monitor Feb 2015 / Base 1002

Q6b Which of the holidays/breaks that you have taken this year/ expect to take next year will be your main or ‘big’ holiday?

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Very slight shift towards taking a big holiday

17%

13%

24%

9%

37%

13%

16%

27%

8%

37%

0%

5%

10%

15%

20%

25%

30%

35%

40%

Take multiple shortbreaks but no big

holiday

Take multiple shortbreaks and a big

holiday

Take a big holidaywith only one or two

short breaks

Take only a bigholiday, and no short

breaks

Too early to say/don'tknow yet

More generally speaking, which of the following do you expect to do in 2015?

Mar-14 Feb-15

Source: VisitEngland Staycation Monitor Feb 2015 / Base 1002

Q11f More generally speaking, which of the following do you expect to do in 2015?

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Little change from a year ago - balance just lies with taking more trips abroad - Economic uncertainty reflected in unwillingness to plan ahead – around 80% expect no

change or don’t know - However, those that do say indicate more short breaks in England and more long trips abroad

13% 5% 6% 4%

12% 15%

49%

43% 38% 37%

38% 41%

9%

12% 10% 10%

11% 10%

29% 40% 46% 49%

39% 34%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Short breaks inEngland

Long holidays inEngland

Short breaks inrest of UK

Long holidays inrest of UK

Short breaksabroad

Long holidaysabroad

Thinking about the longer term (3-4 years) will you take more, less or the same number of trips than you will this year?

More About the same Less Don't know

Source: VisitEngland Staycation Monitor Feb 2015 / Base 1002

Q11f Thinking about the longer term (3-4 years) will you take more, less or the same number of trips than you will this year?

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Planning – 2014 and 2015 comparison - Slightly higher booking both domestic and abroad - Fewer people saying they’re unlikely to go abroad

20% 24%

12% 13%

18% 13%

21% 27%

30% 23%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

England Abroad

I haven't really thought about it yet

I'm unlikely to take a holiday/ break in 2015

I haven't booked or researched anything yet, but I'm likely to take a holiday/ break in 2015

I've researched a holiday/break for 2015, but I haven't actually booked it yet

I've already booked a holiday/ break for 2015

Source: VisitEngland Staycation Monitor Feb 2015 / Base 1002

Q13a/b Which of the following best describes the extent to which you’ve planned your holidays in England/Abroad?

18% 22%

13% 13%

20% 11%

23% 33%

27% 21%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

England Abroad

Feb 2015 March 2014

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Implications

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Key findings

• The recovery continues at national level but continues to evade people. The effect this wave has been increased concern about the downturn and increased caution about the short term future – although this has not translated into behaviour changes (yet)

• Everyday spending is increasingly subject to some form of cost-saving measure – in order to fund greater spending on treats and holidays

• England remains very competitive as a holiday destination, especially for short breaks. There are also indications that the drivers of domestic trips are increasingly less likely to be practical or financial – and more likely to be driven by wanting to explore England or return to a previous destination

• Between 30-40% of all domestic trips change between being planned and booked – indicating scope to influence and encourage trips

• Consumers remain cautious about the year ahead, but indicate that their long term holiday plans include a balance of short breaks in England with longer trips abroad

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Where next for the staycation and why

• The staycation is currently being sustained by economic uncertainty – with some evidence from this data that as people feel better off, they will take long foreign trips at the expense of domestic ones

• There will be no big shift until economic recovery is more concretely underway, and given consumers’ current cautiousness, this year, as in 2014 we are likely to see only a gradual increase in overseas travel

• In the short-medium term it is likely the staycation will continue to decline as consumers feel better off – resulting in fewer longer trips in England as pent up demand and greater affluence encourages people to go abroad. As a short break destination, England will remain competitive in both the short term and beyond

• In the longer term, it is possible that the staycation will rally: the length and depth of the downturn ensured consumers were more likely to holiday in England, and their positive experiences of those trips will spur repeat visits and a legacy effect

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Thank You

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Appendix

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Within holiday spending, consumers continue to move away from cutting back

5%

5%

6%

6%

6%

7%

11%

11%

6%

5%

6%

8%

9%

8%

12%

12%

8%

7%

9%

9%

8%

9%

15%

14%

0% 5% 10% 15% 20%

Cheaper travel

Choosing cheaper destinations abroad

Going to England/UK destinations thatare nearby

Taking holidays in England/UK

Spending less on food/drink on holiday

Cheaper accommodation

Not taking any holidays

Taking fewer holidays overall

Money-saving holiday behaviours (% of all)

Mar-14

Sep-14

Feb-15

Source: VisitEngland Staycation Monitor Feb 2015 / Base 1,002

Q4a How are you cutting back in the amount you spend on holidays?

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65% have made changes to their holiday behaviour – but little change over last year

32%

25%

22% 20%

16%

9%

38%

21%

17% 18%

15%

7%

35%

22%

17% 17% 15%

7%

0%

5%

10%

15%

20%

25%

30%

35%

40%

It hasn't changed atall

I've cut back onholiday spending

I'm holidaying morein England (or therest of the UK) and

less abroad

I've stopped goingon holidayaltogether

I'm taking moreshort breaks andfewer long trips

I'm trying new typesof activity,

accommodation orholiday destination

Mar-14 Sep-14 Feb-15

% agreeing with each of the following statements

Source: VisitEngland Staycation Monitor Feb 2015 / Base 1002

Q5 Overall, how do you feel your holiday behaviour has changed over the past few years? Please select all that apply

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2014

14% 5% 8% 5% 7%

14%

50%

41% 37% 34%

37% 39%

16%

19% 14%

15% 19%

19%

20% 35% 41% 46%

37% 28%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Shortbreaks inEngland

Longholidays

inEngland

Shortbreaks in

rest ofUK

Longholidaysin rest of

UK

Shortbreaksabroad

Longholidaysabroad

Don't know

Less in 2014 than in 2013

About the same in 2014 as in 2013

More in 2014 than in 2013

2015

More, less or the same – 2014 and 2015 compared

Source: VisitEngland Staycation Monitor Feb 2015 / Base: 931

Q11a: For each of the following types of holiday, do you expect to take more, less or the same in 2015 as you did in 2014?

11% 5% 6% 4% 8% 13%

54%

45% 41% 41% 41%

43%

13%

15% 13% 13%

18% 18%

22% 34% 40% 43%

33% 27%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Shortbreaks inEngland

Longholidays

inEngland

Shortbreaks in

rest ofUK

Longholidaysin rest of

UK

Shortbreaksabroad

Longholidaysabroad

Don't know

Less in 2015 than in 2014

About the same in 2015 as in 2014

More in 2015 than in 2014

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2014

14% 5% 8% 4%

11% 18%

49%

41% 35% 35%

35%

38%

10%

16% 10%

12%

14%

12%

27% 38%

46% 49% 40%

31%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Shortbreaks inEngland

Longholidays

inEngland

Shortbreaks in

rest ofUK

Longholidaysin rest of

UK

Shortbreaksabroad

Longholidaysabroad

More About the same Less Don't know

2015

More, less or the same (Next few years)– 2014 and 2015 compared

Source: VisitEngland Staycation Monitor Feb 2015 / Base: 931

Q11a: For each of the following types of holiday, do you expect to take more, less or the same in 2015 as you did in 2014?

13% 5% 6% 4%

12% 15%

49%

43% 38% 37%

38% 41%

9%

12% 10%

10%

11% 10%

29% 40%

46% 49% 39%

34%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Shortbreaks inEngland

Longholidays

inEngland

Shortbreaks in

rest ofUK

Longholidaysin rest of

UK

Shortbreaksabroad

Longholidaysabroad

More About the same Less Don't know

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Planning – 2014 and 2015 comparison - Slightly higher booking both domestic and abroad - Fewer people saying they’re unlikely to go abroad

20%

24%

12% 13%

18%

13%

21%

27%

30%

23%

0%

5%

10%

15%

20%

25%

30%

35%

England Abroad

I've already booked a holiday/ break for 2015

I've researched a holiday/break for 2015, but I haven't actually booked it yet

I haven't booked or researched anything yet, but I'm likely to take a holiday/ break in 2015

I'm unlikely to take a holiday/ break in 2015

I haven't really thought about it yet

Source: VisitEngland Staycation Monitor Feb 2015 / Base 1002

Q13a/b Which of the following best describes the extent to which you’ve planned your holidays in England/Abroad?

18%

22%

13% 13%

20%

11%

23%

33%

27%

21%

0%

5%

10%

15%

20%

25%

30%

35%

England Abroad

Feb 2015 March 2014

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Booking and planning – short breaks

Over 6

months

Between 6

and 3

months

Between 3

months and

1 month

Between 4

and 2 weeks

Between 2

weeks and 1

week

1 week or

less

The day

before or

closer

Total

Over 6 months 54% 36% 9% 1% 0% 0% 0% 100%

Between 6

and 3 months 3% 66% 24% 3% 2% 1% 1% 100%

Between 3

months and 1

month

2% 9% 64% 21% 3% 1% 1% 100%

Between 4

and 2 weeks 2% 3% 11% 52% 23% 9% 0% 100%

Between 2

weeks and 1

week

7% 11% 11% 4% 43% 25% 0% 100%

1 week or less 4% 8% 8% 0% 15% 58% 8% 100%

The day

before or

closer

0% 20% 20% 20% 0% 0% 40% 100%