Travel & Tourism - United Kingdom

United Kingdom

The United Kingdom's Travel & Tourism market is expected to reach a revenue of £32.32bn by 2024, with an annual growth rate (CAGR 2024-2029) of 1.92%, projecting a market volume of £35.54bn by 2029.
The market, the Hotels market, is expected to reach a market volume of £16.75bn by 2024.
The number of users in Hotels is projected to reach 42.94m users by 2029, with a user penetration of 71.2% in 2024 and a projected increase to 82.5% by 2029.
The average revenue per user (ARPU) is expected to be £0.67k.
By 2029, online sales are anticipated to generate 80% of the total revenue in the Travel & Tourism market.
In global comparison, United States is projected to generate the most revenue, amounting to £168bn by 2024.
The emergence of niche tourism segments such as wellness retreats, culinary tourism, and heritage tours is reshaping the UK's travel landscape, catering to specific interests and preferences of travelers.

Key regions: Malaysia, Europe, Singapore, Vietnam, United States

Definition:

The Travel & Tourism market encompasses a diverse range of accommodation services catering to the needs and preferences of travelers. This dynamic market includes package holidays, hotel accommodations, private vacation rentals, camping experiences, and cruises.

Structure:

The market consists of five further markets.

The Cruises market covers multi-day vacation trips on a cruise ship. The Cruises market encompasses exclusively passenger ticket revenues.
The Vacation Rentals market comprises of private accommodation bookings which includes private holiday homes and houses as well as short-term rental of private rooms or flats.
The Hotels market includes stays in hotels and professionally run guest houses.
The Package Holidays market comprises of travel deals that normally contain travel and accommodation sold for one price, although optional further provisions can be included such as catering and tourist services.
The Camping market includes bookings at camping sites for pitches using tents, campervans, or trailers. These can be associated with big chains or privately managed campsites.

Additional Information:

The main performance indicators of the Travel & Tourism market are revenues, average revenue per user (ARPU), users and user penetration rates. Additionally, online and offline sales channel shares display the distribution of online and offline bookings. The ARPU refers to the average revenue one user generates per year while the revenue represents the total booking volume. Revenues are generated through both online and offline sales channels and include exclusively B2C revenues and users for the above-mentioned markets. Users represent the aggregated number of guests. Each user is only counted once per year. Additional definitions for each market can be found within the respective market pages.

The booking volume includes all booked travels made by users from the selected region, independent of the departure and arrival. The scope includes domestic and outbound travel.

Prominent players in this sector include online travel agencies (OTAs) like Expedia and Opodo, as well as tour operators such as TUI. Specialized platforms like Hotels.com, Booking.com, and Airbnb facilitate the online booking of hotels and private accommodations, contributing significantly to the market's vibrancy.

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Market

Region

Region comparison

Currency

Analyst Opinion

The Travel & Tourism market in United Kingdom continues to show resilience and growth, driven by a combination of factors unique to the region.

Customer preferences: Travelers in the United Kingdom are increasingly seeking personalized and unique experiences, moving away from traditional tourist attractions to more niche and off-the-beaten-path destinations. This shift in preferences is fueled by a desire for authentic cultural experiences and a deeper connection with the local community.

Trends in the market: One notable trend in the United Kingdom's Travel & Tourism market is the rise of sustainable and eco-friendly travel practices. Travelers are becoming more conscious of their environmental impact and are actively seeking out companies and destinations that prioritize sustainability. This trend is driving innovation in the industry, with many businesses adopting green practices to cater to this growing market segment.

Local special circumstances: The United Kingdom's rich history and diverse cultural offerings make it a top destination for travelers from around the world. From historic landmarks to vibrant cities, the country offers a wide range of experiences for tourists. Additionally, the United Kingdom's strong transportation infrastructure and well-developed tourism industry make it a convenient and accessible destination for both domestic and international travelers.

Underlying macroeconomic factors: The United Kingdom's stable economy and strong currency make it an attractive destination for tourists looking for high-quality experiences. Despite uncertainties surrounding Brexit, the country remains a popular choice for travelers due to its cultural attractions, world-class museums, and picturesque landscapes. Additionally, the United Kingdom's well-established tourism industry and hospitality sector contribute to the overall growth and development of the Travel & Tourism market in the region.

Methodology

Data coverage:

The data encompasses B2C enterprises. Figures are based on bookings, revenues, and sales channels of hotels, vacation rentals, cruises, package holidays, and camping.

Modeling approach:

Market sizes are determined through a bottom-up approach, building on a specific rationale for each market. As a basis for evaluating markets, we use financial reports, the Global Consumer Survey, third-party studies and reports, data from industry associations (e.g., UNWTO), and price data of major players in respective markets. To estimate the number of users and bookings, we furthermore use data from the Statista Consumer Insigths Global survey. In addition, we use relevant key market indicators and data from country-specific associations, such as country-related GDP, demographic data (e.g., population), tourism spending, consumer spending, internet penetration, and device penetration. This data helps us estimate the market size for each country individually.

Forecasts:

In our forecasts, we apply diverse forecasting techniques. The selection of forecasting techniques is based on the behavior of the relevant market. For example, ARIMA, which allows time series forecasts, accounting for stationarity of data and enabling short-term estimates. Additionally, simple linear regression, Holt-Winters forecast, and exponential trend smoothing methods are applied. A k-means cluster analysis allows for the estimation of similar countries. The main drivers are tourism GDP per capita and respective price indices.

Additional notes:

The data is modeled using current exchange rates. The market is updated twice a year in case market dynamics change.