Source Market Insights: United Kingdom
Summary
United Kingdom residents spent £3 billion on their visits abroad in March 2017, a 13% increase when compared with March 2016. In the three months to March 2017, UK residents made 1% more holiday visits abroad than the same period a year previously. This indicates that although British tourists are spending more money on their holidays, they are not taking many more holidays. If anything, it highlights the weakness of the pound against the Euro and the dollar, as holidays become inevitably more expensive for British consumers, thus causing high spending and less incentive to take more trips abroad.
Currency exchange rates with EU countries are particularly positive with unemployment falling in the US. This may be advantageous for the growth of the US outbound market, with France and Italy benefitting from an appreciating US dollar and increasing tourism flows long haul to destinations in Europe.
With over 66 million outbound trips made in 2016, the UK continues to see high levels of outbound tourism with 4% growth on the previous year for outbound travel. While business travel continues to account for the main purpose of travel with over 50% taken up by this, there has been increasing signs of the VFR market making inroads. This can be seen by the 4.6% increase in VFR trips outbound in 2016, in contrast to just 2.9% growth in business trips for the same period. Although it is early days, this can be attributed to the slowdown in European trade with the UK, which has been a consequence of the Brexit vote in June 2016, resulting in Britain’s decision to leave the European Union. GlobalData expects outbound travel overall to continue growing reaching over 80.8 million by 2021.
UK experienced a dramatic political shift brought about by the 2016 referendum; sterling has plummeted in the wake the Brexit vote. This has been reflected in outbound British consumer spending with expenditure falling to US$97.9 billion, a decrease by -1.3% in just one year. While more UK consumers are taking trips, with one of the largest outbound markets in Europe, the declining rate of the pound against both the Euro and the dollar has created uncertainty among consumers about increasing holiday costs
The report “Source Market Insights: United Kingdom” provides Detailed market analysis, information, and insights.
In depth, this report provides the following analysis –
– Historic and forecast tourist volumes and values covering UK’s outbound tourism sector
– Detailed analysis of tourist spending patterns for various categories in the travel and tourism sector, such as purpose of spending and top source markets
– Detailed analysis of the market trends in the UK outbound tourism sector
Companies mentioned in this report: Sofitel, Intercontinental.
Scope
– With over 66 million outbound trips made in 2016, the UK continues to see high levels of outbound tourism with 4% growth on the previous year for outbound travel. While business travel continues to account for the main purpose of travel with over 50% taken up by this, there has been increasing signs of the VFR market making inroads.
Reasons to buy
Detailed market analysis, information, and insights, including –
– Historic and forecast tourist volumes and values covering UK’s outbound tourism sector
– Detailed analysis of tourist spending patterns for various categories in the travel and tourism sector, such as purpose of spending and top source markets
– Detailed analysis of the market trends in the UK outbound tourism sector.
