Trends and Factors:
A trend is something that people follow over a certain amount of time and factors are facts and statistics that back up this trend and give information about why people follow it and about it.
Trends:
Package Holidays:
Link ABTA: Travel Trends 2014
http://abta.com/resource-zone/publication/abta-travel-trends-report-2014-publication
Package holidays are rising due to the popularity in recent years and they are expected to continue into 2014. For example in 2013 46% of holidaymakers who took a foreign holiday booked a package and they would package to remain popular in 2014. The growth has been fuelled by consumers valuing having everything taken care of and the value offered by packages. It is also a cheaper way to book a holiday rather than booking it by yourself as Tour Operators can get a better deal and can provide you with much more information about the place and what you are going to be doing. At the same time the package holiday market has also evolved to offer greater choice and sophistication to holidaymakers as well as tailor made tours and bespoke itineraries. It’s shown that package holidays are most popular with families with young children under the age of 5. This may be because, with package holidays often theme parks or family fun days are included which will increase the want for families with young children to go. However it is also shown that package holidays are popular with those aged over 65. Similarly this could mean that they may want a relaxing holiday with everything booked for them and their days planned out. All inclusive are also expected to see continued strong demand in 2014. The all-inclusive market had been a major beneficiary of the downturn and 2014 looks set to see further increases in demand for all inclusives both at home and abroad, with 15% of respondents to ABTA’S consumer survey saying they took an all-inclusive break in 2013 and 21% saying they’ll consider taking one in 2014.
Train, Coach and Cruise:
Link: http://www.cruisemarketwatch.com/growth/
This link shows that cruises are expected to continue to perform well in 2014 with many of the large cruise companies forecasting a strong year. ABTA is also seeing particular interest from 16-24 year old for cruises with 19% saying they are considering a cruise in 2014, which is more than double the 7% that took one in 2013, therefore more young people are cruising in today's society. ABTA is also seeing strong interest in train and coach holidays, with 6% of consumers considering a coach holiday in 2014 and 7% considering a train holiday.The reason cruising is important is because it is all inclusive and everything is provided for them, and is increasing each year.This increase can be attributed to people seeking alternative options to flying, the growth of high speed rail, particularly across Europe and consumers looking for good value holidays close to home. The cruise industry has an annual passenger compound annual growth rate of 7% from 1990 – 2018. Growth strategies to date have been driven by larger capacity new builds and ship diversification, more local ports, more destinations and new on-board/on-shore activities that match demands of consumers. The industry is also expanding rapidly internationally. Similarly tour operators such as Thomas Cook and Thompson now have their own cruise ships and are making there own holidays.
Link: https://c0e31a7ad92e875f8eaa-5facf23e658215b1771a91c2df41e9fe.ssl.cf3.rackcdn.com/publications/Travel_Trends_2015_Report.pdf
2015 Travel Trends:
The 2015 trends shows that cruise looks set for a strong year in 2015. 10% of the people are planning a cruise holiday for 2015, compared to the 7% who took one in 2014. This shows that there is a big increase each year as 3% is a great growth to the travel and tourism industry and predictions have been said they will continue to rise each year. In 2015, cruise holidays will be most popular with the older end of the market, 18% of over 65's and 13& of people ages 55-64 are planning to take one. River cruising is playing an important part in the continued growth of the cruise market with the
majority of river cruises heading to Europe, reflecting the trend for city breaks seen elsewhere in the market. This is also testament to the ease of getting to many of these destinations through the number of air and train routes that are readily available. CLIA UK & Ireland is reporting that the
European river cruise sector grew 22%, making it the fastest growing sector in the British travel industry. In my opinion in the older days cruises were seen to be for older people, however today there are a lot more younger people that are preferring to try out cruises. In the ABTA travel trends it says that 16-24 year old's are considering to take a holiday, and other companies such as Costa are now providing cruises for families which is a big demand as more families are willing to try out more and explore all different types of things to entertain themselves as well as the children.
Age group trends:
In 2013 those aged 55-64 were the only age group to experience growth in the average number of holidays taken per person. From this they expected holiday bookings to continue to be steady among this age group as there was a mass rise. While younger consumers cut back on the number of holidays they took in 2013, they look to be back in 2014 with 29% saying they will spend more on holidays and just 13% saying they will spend less.
Increase in frequency of holidays:
Many years ago a lot of people would only go on one main holiday a year with family. This holiday would usually be abroad in the holidays when children are off in summer time. However any other holidays that they decide to take in a year would usually be domestic holidays for either a short break or to visit family and friends. Over the last few years holidays have become popular and a lot easier to book therefore a lot more people are deciding to go away on holidays more frequently. Also the Holidays with Pay Act 1938 has been introduced and it encourages the two week holiday. Domestic holidays have become widespread due to people only wanting short breaks away as it is not that expensive as going abroad. In today’s society people have better working conditions and are entitled to more holidays. There are a lot more electrical appliances that are able to do the jobs that many years ago, people would have to do by hand. These are devices such as washing machines, microwaves, dryers and dishwashers. Families now have more time to spend with each other for leisure therefore they are starting to take holidays more regularly and have a lot more fun. This means the travel and tourism industry are not losing out on any money that they are gaining and making a lot more profit. The trend has changed recently, causing a decline in visitor numbers and outbound trips. The visitor numbers in the UK in 2009 was 29.889 and dropped in 2010 to 29.803 million.
Increased holiday ownership:
Holiday home ownership in the UK has become increasingly popular since the recession with more and people taking regular breaks within the UK. In 2009 the number of holiday homes that are now the owner in Britain has increased by 2.6%. In the upcoming years, it is projected that there will be an increase of overseas visitors to Britain and with people purchasing holiday homes they are more likely to stay over for a short break with family and friends. Families like to purchase these holidays, but also couples that like to get away for a short break and single people who are looking for a second home that offers an affordable price.
Having a holiday home in the UK takes away the stress of transfers, exchange rates and communication for foreign languages. This has a positive effect on domestic tourism for the UK as holiday home owners are going to travel within the UK more often and spend their money. If people from overseas bought a holiday home in the UK it would benefit the travel and tourism industry because people are coming into the country and spending their money, this benefits the multiplier effect. This encourages more domestic tourism for example if someone has a holiday home at the Lake District and in London they can spend their holidays and short breaks there rather than travelling and going overseas.
Link: http://www.cornwall.gov.uk/media/3642941/BN11-Second-and-Holiday-Homes-v2-Nov-13.pdf
There are many reasons why someone would have a second home and the English Housing Survey provides some information on these reasons (respondents could give more than one reason) in its latest 2010-11 survey:
• Long term investment (43%);
• Holiday home (48.4%);
• Retirement home (15.1%);
• Away from home (4.5%)
• Previously main home (9.8%); and
• Other (9.2%)
Link: http://www.homeaway.co.uk/info/press/press-releases/archive-2012/homeaway-predicts-the-hottest-travel-trends-for-2013
HomeAway predicts that Personal Catering will become the travel buzzword for 2013 as people move away from the outdated image of self-catering meaning basic accommodation. HomeAway makes it easier than ever for holidaymakers to switch from pricey package holidays to the more authentic holiday experience they are seeking from a holiday rental. Increasing numbers of holidaymakers are now packaging up holidays themselves, leading the phenomenal growth. Over the past years, the holiday rentals site has been a steady increase in booking enquiries worldwide, particularly in the UK and Europe.
More independent travellers:
People have started to travel independently and are more confident to travel overseas. The TV and Media are making it more attractive to travel overseas and show different sides of tourism. This has made package holidays decrease as people are deciding when they want to go and only have to pay for their flights instead of ancillary services. In today’s society it is easier to access money abroad, credit/debit card assist the traveller to purchase goods and services. However If people are not sure where to go on holidays then Travel guided are available to most destinations, to help them find their surroundings. The more people that travel abroad alone, the more confident they become with the surroundings and are more likely to go and see and explore the place more than they would with family and friends.
Factors:
Natural Disasters:
Natural disasters has a massive affect on the Travel and Tourism industry. Firstly they can decline the number of tourist visiting a certain area, there is a decrease in money being spent in an area due to lack of visitors, they can destroy natural environments and certain things that the industry relies on and they also have a huge effect on transport links, which prevents people from travelling within the area and so will lead to a decline in domestic tourism. The impact of natural disasters has been more profound during the last few years and this can be attributed to the changing weather patterns around the world as well as the increased number of tourist spots. Today, more and more natural reserves and areas that were once inhabitable are being made accessible to attract tourists. Though this give a boost to the local tourism, it also increases the impact of natural disasters. Natural disasters cause many tourist destinations to lose their beauty, culture and economy for a temporary or extended period of time. The scale of the damage depends to a large extent on the fury of the natural disaster. For example during the 2004 Tsunami, the Andaman and Nicobar Islands of India suffered heavily. Located in the Indian Ocean off the eastern coast of India, these islands were attracting large numbers of tourists due to its untouched natural beauty. Also a few years ago there was a volcanic cloud, major problems occurred and planes weren't allowed to fly which had a big impact on the travel and tourism industry. However nowadays people are more aware of it.
Link: https://tourismembassy.com/en/blog/tourismology-by-tourismembassy/impact-of-natural-disasters-on-the-tourism-industry
Health Warnings:
There are various different health warnings which can have a huge impact on the travel and tourism industry worldwide. This could be an out break of a disease in an area. For example in 2009 there was an out break of swine flu in Mexico, which had a major impact on tourism in the area. It is spread rapidly through person to person contact, due to this temporary travel restrictions have been made in the past, for example non-essential travel to Mexico was advised against, also some tour operators cancelled their flights to Mexico. Other viruses include Bird Flu and Ebola which is certainly Epidemic (Worldwide).
Terrorism:
Terrorism can have a very large effect on the tourism industry. It can lead to unemployment of those who depend on it. Data showed that in 2009 the attack on twin towers brought down the number of tourism and the amount of money the travel and tourism industry made. However, recently in Sydney hostages were held during a terrorist attack holding 40 people hostage. This was a massive event in Sydney and frightened a lot of people, this could of meant that people wouldn't go there again and may have put people off the area. This could have an effect on the economy as less people would book to stay in hotels which could lead to less people employed and a decrease in money on the industry. This could be a reverse in the multiplier effect.
Link: https://www.gov.uk/foreign-travel-advice/usa/terrorism
Terrorist attacks on destinations can have a serious impact on the tourism. Every act of terrorism leads to more security checks and is more difficult for air passengers to fly freely. For example a terrorism attack was the 9/11. A foreign travel advice states that there is a general threat from terrorism. Attacks could be indiscriminate, including in places frequented by foreigners. It also suggests that we should monitor media reports and remain vigilant at all times. There is considered to be a heightened threat of terrorist attack globally against UK interests and British nationals, from groups or individuals motivated by the conflict in Iraq and Syria.
Conclusion:
To conclude, there are various factors that can affect the Travel and Tourism industry, for example, if a terrorist attack occurs in a country, then it might make people think twice about visiting the place as they might be frightened or put off the place. Terrorism could lead to unemployment, people left homeless and many other social impacts. In today's society most UK residents prefer to stay in their country rather than going somewhere overseas as it is cheaper and still enjoyable. Overall the trends and factors affecting the Travel and Tourism industry are constantly changing , however the industry has to follow this in order to gain more profit and be successful. As the industry is constantly changing, managers or different organisations need to keep us with all of the current trends to make sure their businesses continues to meet customers needs.
A trend is something that people follow over a certain amount of time and factors are facts and statistics that back up this trend and give information about why people follow it and about it.
Trends:
Package Holidays:
Link ABTA: Travel Trends 2014
http://abta.com/resource-zone/publication/abta-travel-trends-report-2014-publication
Package holidays are rising due to the popularity in recent years and they are expected to continue into 2014. For example in 2013 46% of holidaymakers who took a foreign holiday booked a package and they would package to remain popular in 2014. The growth has been fuelled by consumers valuing having everything taken care of and the value offered by packages. It is also a cheaper way to book a holiday rather than booking it by yourself as Tour Operators can get a better deal and can provide you with much more information about the place and what you are going to be doing. At the same time the package holiday market has also evolved to offer greater choice and sophistication to holidaymakers as well as tailor made tours and bespoke itineraries. It’s shown that package holidays are most popular with families with young children under the age of 5. This may be because, with package holidays often theme parks or family fun days are included which will increase the want for families with young children to go. However it is also shown that package holidays are popular with those aged over 65. Similarly this could mean that they may want a relaxing holiday with everything booked for them and their days planned out. All inclusive are also expected to see continued strong demand in 2014. The all-inclusive market had been a major beneficiary of the downturn and 2014 looks set to see further increases in demand for all inclusives both at home and abroad, with 15% of respondents to ABTA’S consumer survey saying they took an all-inclusive break in 2013 and 21% saying they’ll consider taking one in 2014.
Train, Coach and Cruise:
Link: http://www.cruisemarketwatch.com/growth/
This link shows that cruises are expected to continue to perform well in 2014 with many of the large cruise companies forecasting a strong year. ABTA is also seeing particular interest from 16-24 year old for cruises with 19% saying they are considering a cruise in 2014, which is more than double the 7% that took one in 2013, therefore more young people are cruising in today's society. ABTA is also seeing strong interest in train and coach holidays, with 6% of consumers considering a coach holiday in 2014 and 7% considering a train holiday.The reason cruising is important is because it is all inclusive and everything is provided for them, and is increasing each year.This increase can be attributed to people seeking alternative options to flying, the growth of high speed rail, particularly across Europe and consumers looking for good value holidays close to home. The cruise industry has an annual passenger compound annual growth rate of 7% from 1990 – 2018. Growth strategies to date have been driven by larger capacity new builds and ship diversification, more local ports, more destinations and new on-board/on-shore activities that match demands of consumers. The industry is also expanding rapidly internationally. Similarly tour operators such as Thomas Cook and Thompson now have their own cruise ships and are making there own holidays.
Link: https://c0e31a7ad92e875f8eaa-5facf23e658215b1771a91c2df41e9fe.ssl.cf3.rackcdn.com/publications/Travel_Trends_2015_Report.pdf
2015 Travel Trends:
The 2015 trends shows that cruise looks set for a strong year in 2015. 10% of the people are planning a cruise holiday for 2015, compared to the 7% who took one in 2014. This shows that there is a big increase each year as 3% is a great growth to the travel and tourism industry and predictions have been said they will continue to rise each year. In 2015, cruise holidays will be most popular with the older end of the market, 18% of over 65's and 13& of people ages 55-64 are planning to take one. River cruising is playing an important part in the continued growth of the cruise market with the
majority of river cruises heading to Europe, reflecting the trend for city breaks seen elsewhere in the market. This is also testament to the ease of getting to many of these destinations through the number of air and train routes that are readily available. CLIA UK & Ireland is reporting that the
European river cruise sector grew 22%, making it the fastest growing sector in the British travel industry. In my opinion in the older days cruises were seen to be for older people, however today there are a lot more younger people that are preferring to try out cruises. In the ABTA travel trends it says that 16-24 year old's are considering to take a holiday, and other companies such as Costa are now providing cruises for families which is a big demand as more families are willing to try out more and explore all different types of things to entertain themselves as well as the children.
Age group trends:
In 2013 those aged 55-64 were the only age group to experience growth in the average number of holidays taken per person. From this they expected holiday bookings to continue to be steady among this age group as there was a mass rise. While younger consumers cut back on the number of holidays they took in 2013, they look to be back in 2014 with 29% saying they will spend more on holidays and just 13% saying they will spend less.
Increase in frequency of holidays:
Many years ago a lot of people would only go on one main holiday a year with family. This holiday would usually be abroad in the holidays when children are off in summer time. However any other holidays that they decide to take in a year would usually be domestic holidays for either a short break or to visit family and friends. Over the last few years holidays have become popular and a lot easier to book therefore a lot more people are deciding to go away on holidays more frequently. Also the Holidays with Pay Act 1938 has been introduced and it encourages the two week holiday. Domestic holidays have become widespread due to people only wanting short breaks away as it is not that expensive as going abroad. In today’s society people have better working conditions and are entitled to more holidays. There are a lot more electrical appliances that are able to do the jobs that many years ago, people would have to do by hand. These are devices such as washing machines, microwaves, dryers and dishwashers. Families now have more time to spend with each other for leisure therefore they are starting to take holidays more regularly and have a lot more fun. This means the travel and tourism industry are not losing out on any money that they are gaining and making a lot more profit. The trend has changed recently, causing a decline in visitor numbers and outbound trips. The visitor numbers in the UK in 2009 was 29.889 and dropped in 2010 to 29.803 million.
Increased holiday ownership:
Holiday home ownership in the UK has become increasingly popular since the recession with more and people taking regular breaks within the UK. In 2009 the number of holiday homes that are now the owner in Britain has increased by 2.6%. In the upcoming years, it is projected that there will be an increase of overseas visitors to Britain and with people purchasing holiday homes they are more likely to stay over for a short break with family and friends. Families like to purchase these holidays, but also couples that like to get away for a short break and single people who are looking for a second home that offers an affordable price.
Having a holiday home in the UK takes away the stress of transfers, exchange rates and communication for foreign languages. This has a positive effect on domestic tourism for the UK as holiday home owners are going to travel within the UK more often and spend their money. If people from overseas bought a holiday home in the UK it would benefit the travel and tourism industry because people are coming into the country and spending their money, this benefits the multiplier effect. This encourages more domestic tourism for example if someone has a holiday home at the Lake District and in London they can spend their holidays and short breaks there rather than travelling and going overseas.
Link: http://www.cornwall.gov.uk/media/3642941/BN11-Second-and-Holiday-Homes-v2-Nov-13.pdf
There are many reasons why someone would have a second home and the English Housing Survey provides some information on these reasons (respondents could give more than one reason) in its latest 2010-11 survey:
• Long term investment (43%);
• Holiday home (48.4%);
• Retirement home (15.1%);
• Away from home (4.5%)
• Previously main home (9.8%); and
• Other (9.2%)
Link: http://www.homeaway.co.uk/info/press/press-releases/archive-2012/homeaway-predicts-the-hottest-travel-trends-for-2013
HomeAway predicts that Personal Catering will become the travel buzzword for 2013 as people move away from the outdated image of self-catering meaning basic accommodation. HomeAway makes it easier than ever for holidaymakers to switch from pricey package holidays to the more authentic holiday experience they are seeking from a holiday rental. Increasing numbers of holidaymakers are now packaging up holidays themselves, leading the phenomenal growth. Over the past years, the holiday rentals site has been a steady increase in booking enquiries worldwide, particularly in the UK and Europe.
More independent travellers:
People have started to travel independently and are more confident to travel overseas. The TV and Media are making it more attractive to travel overseas and show different sides of tourism. This has made package holidays decrease as people are deciding when they want to go and only have to pay for their flights instead of ancillary services. In today’s society it is easier to access money abroad, credit/debit card assist the traveller to purchase goods and services. However If people are not sure where to go on holidays then Travel guided are available to most destinations, to help them find their surroundings. The more people that travel abroad alone, the more confident they become with the surroundings and are more likely to go and see and explore the place more than they would with family and friends.
Factors:
Natural Disasters:
Natural disasters has a massive affect on the Travel and Tourism industry. Firstly they can decline the number of tourist visiting a certain area, there is a decrease in money being spent in an area due to lack of visitors, they can destroy natural environments and certain things that the industry relies on and they also have a huge effect on transport links, which prevents people from travelling within the area and so will lead to a decline in domestic tourism. The impact of natural disasters has been more profound during the last few years and this can be attributed to the changing weather patterns around the world as well as the increased number of tourist spots. Today, more and more natural reserves and areas that were once inhabitable are being made accessible to attract tourists. Though this give a boost to the local tourism, it also increases the impact of natural disasters. Natural disasters cause many tourist destinations to lose their beauty, culture and economy for a temporary or extended period of time. The scale of the damage depends to a large extent on the fury of the natural disaster. For example during the 2004 Tsunami, the Andaman and Nicobar Islands of India suffered heavily. Located in the Indian Ocean off the eastern coast of India, these islands were attracting large numbers of tourists due to its untouched natural beauty. Also a few years ago there was a volcanic cloud, major problems occurred and planes weren't allowed to fly which had a big impact on the travel and tourism industry. However nowadays people are more aware of it.
Link: https://tourismembassy.com/en/blog/tourismology-by-tourismembassy/impact-of-natural-disasters-on-the-tourism-industry
Health Warnings:
There are various different health warnings which can have a huge impact on the travel and tourism industry worldwide. This could be an out break of a disease in an area. For example in 2009 there was an out break of swine flu in Mexico, which had a major impact on tourism in the area. It is spread rapidly through person to person contact, due to this temporary travel restrictions have been made in the past, for example non-essential travel to Mexico was advised against, also some tour operators cancelled their flights to Mexico. Other viruses include Bird Flu and Ebola which is certainly Epidemic (Worldwide).
Terrorism:
Terrorism can have a very large effect on the tourism industry. It can lead to unemployment of those who depend on it. Data showed that in 2009 the attack on twin towers brought down the number of tourism and the amount of money the travel and tourism industry made. However, recently in Sydney hostages were held during a terrorist attack holding 40 people hostage. This was a massive event in Sydney and frightened a lot of people, this could of meant that people wouldn't go there again and may have put people off the area. This could have an effect on the economy as less people would book to stay in hotels which could lead to less people employed and a decrease in money on the industry. This could be a reverse in the multiplier effect.
Link: https://www.gov.uk/foreign-travel-advice/usa/terrorism
Terrorist attacks on destinations can have a serious impact on the tourism. Every act of terrorism leads to more security checks and is more difficult for air passengers to fly freely. For example a terrorism attack was the 9/11. A foreign travel advice states that there is a general threat from terrorism. Attacks could be indiscriminate, including in places frequented by foreigners. It also suggests that we should monitor media reports and remain vigilant at all times. There is considered to be a heightened threat of terrorist attack globally against UK interests and British nationals, from groups or individuals motivated by the conflict in Iraq and Syria.
Conclusion:
To conclude, there are various factors that can affect the Travel and Tourism industry, for example, if a terrorist attack occurs in a country, then it might make people think twice about visiting the place as they might be frightened or put off the place. Terrorism could lead to unemployment, people left homeless and many other social impacts. In today's society most UK residents prefer to stay in their country rather than going somewhere overseas as it is cheaper and still enjoyable. Overall the trends and factors affecting the Travel and Tourism industry are constantly changing , however the industry has to follow this in order to gain more profit and be successful. As the industry is constantly changing, managers or different organisations need to keep us with all of the current trends to make sure their businesses continues to meet customers needs.