MidBritain and Travel expenditure
Introduction
The Office for National Statistics revealed that 66.4 million overseas trips were made in 2005, triple the number recorded in 1981. The statistics also show people are travelling more frequently and over longer distances than ever before. According to research from Tourism Intelligence International (TII), almost 70 million Britons will take a break abroad by 2010, compared with the 64.1 million recorded in 2004.
According to The UK Tour Operators Market Development Report by Market & Business Development, travel expenditure by UK residents is predicted to grow to £26.1 billion by 2010. However, despite overall growth, package holidays share of the total holiday market is declining. Its share of the market has slipped from 49% of travel expenditure in 2001 to 45% in 2005. The trend will continue until 2010 when its share is expected to be around 41%.
The increased popularity of the internet has meant that people are increasingly choosing to book flights and hotels direct with suppliers. According to research by Thomson Holidays, more than half of all holidays and flights will be booked online by 2007. Those in their 50s and early 60s are the fastest growing group of Internet travel bookers. 2006 saw a strong rise in travel to Eastern European countries (24%) being not only accessible, but they still hold a certain 'mystique' for the traveller and are still very cheap destinations and fair favourably against the UK cost of living.
According to the TII, British holidaymakers are likely to flock to countries as diverse as Cyprus, China (2008 Olympics) and Dubai in the near future. Locations such as Brazil, Bulgaria and the Dominican Republic were also cited as being 'in' for British holidaymakers. It seems that long haul destinations are no longer restricted to a once a year, 3 week holiday treat – with new low cost long haul airlines flying to the Far East - people are increasingly taking short breaks to destinations like Hong Kong.
MidBritain and Travel
What about MidBritons and their travel habits? They make up 54% of those who travel, which equates to 17.2million holidaymakers. 56% of holidaymakers travelling abroad were MidBritons and they are spending more on higher value holidays.
55% of those booking their holidays do so via the internet and they are responsive to advertising - 60% of those booking their holidays did so via an advertisement .
MidBritain’s worth to the Travel Industry
66% of those who spend over £2,500 per holiday per person are MidBritons compared to 34% non-MidBritain. In fact most of their holiday habits suggest they are a free spending group…
64% of those taking 5 or more holidays a year are MidBritons, they tend to travel in large groups – 58% of holidays booked for 2+ people are booked by MidBritons and they’re taking longer holidays – 60% of three week holidays booked, are booked by MidBritons.
58% of those booking their holidays 3+ months in advance are MidBritons – 8.9m of them, in fact. This could mean advance bookings worth in excess of £8 billion.
These facts coupled with their propensity to travel abroad imply they are undeniably high spending and therefore a valuable group to the travel industry.
The MidBritain Opportunity
This propensity by a large number of people to book in advance allows us to talk to them at key holiday purchasing periods when MidBritons are most receptive to advertising – i.e. out of season (winter for summer holidays and summer months for winter holidays).
As shown above, MidBritons take more holidays, with more people, stay longer and spend more. In short, they are a vital audience for the travel market place, spending a massive £11 billion per year!
Sources: Mintel 2006, opodo.co.uk, TGI 2007 Q2 (Jan 06–Dec 06).
