Association of British Travel Agents (ABTA) are cautiously positive about the tourism industry’s outlook for 2016 presented in their Travel Trends Report.

Economic recovery seems set to continue and almost a quarter (23%) of the population are expecting to spend more on their holidays in 2016, up slightly from 20% who said the same this time last year, according to ABTA research.

Early indications from industry figures also show the number of overseas holidays booked to date are up 9% year-on-year. The threat of terrorism has impacted public mood in the second half of 2015 and this may affect holiday decisions for 2016.

GfK Ascent’s Leisure Travel Monitor

According to GfK Ascent’s Leisure Travel Monitor, booking patterns changed following the Tunisian incident towards the end of June, with a switch away from Tunisia towards perceived safer destinations. The attack on the Russian plane at the end of October and subsequent terrorist attack in Paris may also affect consumer confidence.

British holidaymakers have traditionally proven to be resilient travellers and it is likely that this will continue in 2016. Almost one in five people (18%) say they will travel to a country they have never been to before in 2016, compared to 9% who said this last year. Furthermore, nearly a quarter (23%) say they will try a new resort or city (even if they have visited the country before) compared to 10% who said this last year.

Trusted destinations

Tried and trusted destinations look set to benefit from geopolitical uncertainty and it is likely that Spain will be 2016’s top destination: bookings are already tracking well ahead of 2015. Likewise, other European destinations like Portugal and Italy are seeing healthy numbers and are also benefiting from a strong pound bringing down the cost of day to day expenses for British holidaymakers.

Away from Europe, ABTA Members have reported that bookings to Cuba, Cape Verde, Kenya and Thailand have been very healthy for 2015 and are looking positive for 2016. Demand for Jamaica, Barbados and the UAE is also strong for 2016. City breaks and beach holidays are set to go head-to-head once again as the top holiday choices, all-inclusives also look to cement a strong position, with one in five people (20%) saying they may take an all-inclusive holiday in 2016.

The cruise industry

There is good news for the cruise industry with 13% saying they are intending to take a cruise in 2016, up slightly from the 10% who actually did so in 2015. Younger people are the most positive about 2016. A third (33%) of people aged 16-24 and 28% of people aged 25- 34 are planning to spend more on holidays next year. Families will also play a key role in the market in 2016 as the staple family holiday remains a firm favourite.

ABTA research shows a particular increase in the number of overseas holidays of 7+ nights from 1.2 in 2014 to 1.5 in 2015 and data from GfK reveals a 5% increase in family bookings. Key destinations for growth in the family market in 2016 include the Canary Islands, the Caribbean, Cyprus, Cape Verde and the UAE.

Key trends for 2016

1. West is best – a return to the western Mediterranean 

Western Mediterranean destinations, in particular Spain, are set for a bumper year with bookings for summer 2016 tracking ahead of previous years as 2015 comes to a close. These destinations have been the main beneficiary of a shift towards tried and trusted destinations, with the combination of geopolitical uncertainty and a favourable exchange rate with the Euro prompting British holidaymakers to visit their old favourites in even greater numbers. Whilst the western Mediterranean has never fallen out of style and has consistently high visitor numbers, it enjoyed an especially strong summer during 2015, perhaps in part due to extra capacity being put on by tour operators following changes in trade advice to destinations. This capacity remains in place for 2016.

1. The ‘holiday-haves’ splash the cash

Almost four in ten (39%) people in social grade A8 say they are planning to spend more on holidays in 2016, compared to an average of 23%. People in social grade B are also more likely than average to spend more next year with 27% stating that they plan to do this. Last year, the ‘holiday-haves’, those classified as social grade A, took an average of 8.0 holidays per person, up from 7.4 holidays per person in 2011 and this group looks set to continue to drive growth in the holiday market in 2016.

1. Destination transformation and gentrification

Perhaps inspired by past successful transformations of Miami’s South Beach and Barcelona, destinations are repositioning in order to attract specific markets and this is expected to be a key trend for 2016. A high profile example of this trend is Magaluf. In 2015 it introduced new laws and worked with hotel groups to open hotels aimed at a more affluent and more family oriented market. Nearby Ibiza has also seen a raft of new openings aimed at these markets, perhaps unsurprisingly given the spending habits and number of holidays taken by people in social grade A. Some may also look to extend their tourist season with cultural or leisure events or by targeting specific markets with activity (see below) or wellness holidays. An example is the Costa Cálida resort of Águilas which is working with Saga Holidays to bring British holidaymakers to the region outside the main season in 2016.

1. Love for long haul 

Long haul holidays are no longer the preserve of the intrepid traveller. According to TUI UK, Thomson and First Choice holidays have seen a 350% increase in long haul customers over the last ten years with an 800% increase in families taking long haul holidays. Destinations involving a longer flight such as Cancun and Dubai are now well established for holidaymakers and some will be looking further afield for their next trip; destinations highlighted later in this report including Australia, Sri Lanka and China are popular options for long haul travel. Wider availability of new aircraft, such as Boeing’s Dreamliner and the Airbus A380 is also making long haul travel more attractive, as is the abolition of Air Passenger Duty (APD) bands C and D in April 2015, which is expected to save British holidaymakers £200m a year.

1. Intrepid over 55s 

According to ABTA Members, older holidaymakers are travelling further and are seeking more active or adventurous holidays. Saga Holidays has added new adventure holidays for 2016 to meet demand from customers who ‘grew up in the 1960s and have seen it all’. ABTA research shows that in 2015 6% of over 55s took a sporting holiday and the same number are planning one for 2016. Additionally, 14% of 55-64 year olds headed to the lakes and mountains in 2015.

1. Bespoke tours

Holidaymakers are getting off the beaten track whilst enjoying the reassurance and protection provided by a package holiday. ABTA Members have reported an increase in people seeking bespoke or tailor made holidays and 6% of people are planning to take a tailor made tour or holiday in 2016. This type of holiday is most popular with people aged 25-34 and over 65. Many of these holidaymakers are also choosing to combine this type of travel with a few days on the beach and a key trend is to travel with a car and driver to allow ultimate flexibility over the trip. Popular destinations for this trend include Cuba, Mexico, the USA and Sri Lanka.

1. Active holidays

Although older holidaymakers are seeking more active and adventurous trips, it is the younger generation that is driving a trend towards more active holidays. 16% of 16-24 year olds and 13% of 25-34 year olds plan to take an activity or sporting holiday in 2016. Additionally, 9% of 16-24 year olds and 12% of 25-34 year olds plan to take an adventure or challenge holiday break. Both long and short haul destinations can benefit from this trend: in 2015, holidays to the lakes and mountains were most popular with people aged 25-34, with 14% taking this type of holiday.

1. Summer of sports

Summer 2016 will see television schedules dominated by major sports events with Euro 2016 taking place in France and the Olympics in Rio de Janiero. Many British travellers will be heading overseas to enjoy these, with 6% of people planning a trip to see a major sports event in 2016. This trend is being driven by people aged 25-34. Over one in ten (11%) people aged 25-34 state that they plan to take a trip to see a major sports event in 2016. Across all age groups, it is very much a male dominated trend with 9% of men planning this type of trip compared to just 3% of women.

Read full report here.

Source: http://www.tornosnews.com

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