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NEWS consumer sentiment research, released today from ABTA – The Travel Association, explores the impact of the conflict in the Middle East and the rising cost of living on people’s intention to travel over the next 12 months.
It shows that a strong appetite to travel abroad remains, with 64 per cent of people planning to travel overseas during the next 12 months1.
Holidays also continue to be a spending priority and over a third (34 per cent) say they plan to spend more on holidays over the coming year.
When asked if they needed to cut back to cover the cost of living, holidays remain the last thing to go. It was eating out (55per cent ), leisure activities (45 per cent) and clothes/shoes etc (41 per cent) that people say they would cut before holidays (33 per cent abroad, 23 per cent UK breaks).
ABTA says that while the intention to travel overseas during the coming year is there (albeit down from 70% last year showing a slight softening2), it is expecting to see a strong late booking pattern over the coming months, with many people planning to book just weeks before they are due to travel.
The new data finds that almost of third (30 per cent) of people planning to travel over the summer period3, intend to book their trip two-to-four weeks in advance, with a further 10 per cent saying they will book less than a fortnight in advance.
Of those who plan to take a trip over the next 12 months, 38 per cent of people have delayed booking their holiday. Waiting to see what happens with the costs of flights (43 per cent) and holidays (31 per cent) and waiting to see if the cost of living improves (33 per cent) are among the top reasons for those delaying their bookings. Other reasons were waiting to see what happens with the conflict in the Middle East (36 per cent), which is more of a concern than the availability of jet fuel (26 per cent).
Although holidays remain a spending priority above all other non-essentials, they are not free from the impact of the increased cost of living. When all respondents were asked what was putting them off booking a holiday, cost of living was the top response at 31 per cent, suggesting those not planning to travel may have already been deterred by rising household bills.
Similarly, a greater proportion of people said they would spend less on their holiday over the next 12 months at 20 per cent, compared to 15 per cent from the previous survey. Again, it’s the rising cost of living driving this, with 54 per cent saying they are cutting down their spending due to increased costs (household bills), up from 47 per cent from the last research.
ABTA says these findings are not just for the industry to note, but for Government to consider as well, given the outbound travel industry generations £52bn a year for the UK economy and supports over 818,000 jobs.
The consumer research has been released ahead of ABTA’s Travel Matters conference, which takes place in Westminster today, and brings together government officials, industry leaders and experts to discuss what travel businesses need from Government. Following the conference, ABTA and its members will be discussing the value the outbound travel industry with MPs at an event in Parliament, including how outbound travel businesses support local communities across the country.
ABTA will be sharing the findings with members over the coming weeks.
Mark Tanzer, Chief Executive of ABTA – The Travel Association said: “Global and economic uncertainty pose challenges for any business, with travel often feeling them more acutely; the conflict in the Middle East has not only had an operational impact, it’s has also affected consumer confidence, both when it comes to travel and confidence in their finances.
“However, as our research shows – and we’ll explore at today’s event, the appetite and interest to travel remains, and we continue to be hopeful for a strong summer season. There is plenty of competition in the market, which will ensure customers continue to get good value for their money.
“Clearly is it not an easy time for travel. Not only do our members have to contend with the impact of the conflict in the Middle East, and its uncertainty, but also rising costs, such as increased business rates and air passenger duty.
“Travel is a huge contributor to the UK economy and provides employment for hundreds of thousands of people. At times like these, collaboration and an open dialogue with government is key to Ministers and officials understanding the pressures all parts of the industry are under, and exploring the solutions that will help businesses, including our members – the travel agents and tour operators.”
The 'Travel' Life of Brian 