Tag Archives: winter holidays

Research finds two thirds of holidaymakers will book online

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Research finds two thirds of holidaymakers will book online

By Ian Taylor

Research finds two thirds of holidaymakers will book onlineThe latest TNS consumer insight for Travel Weekly underlines the popularity of digital channels. Ian Taylor reports

Two thirds of UK adults planning an overseas holiday or break intend to book online this year, according to research for Travel Weekly.

A survey of more than 2,000 adults by TNS in early February suggests up to 20 million could book their travel online, compared with more than eight million with a high street agent or by phone.

Researchers found that 42% of respondents (including those not planning an overseas holiday) said they would book online, 12% on the high street and 5% by phone.

Of course, booking online does not have to mean going direct or buying from someone outside the trade. Few high street retailers fail to sell online; Tui Travel reported 37% of its summer 2013 bookings were made online up to early February and expects this proportion to increase this year.

However, the results confirm consumers are increasingly at ease booking all kinds of holidays – including package holidays – on the internet.

Young adults are clearly most at ease: 55% of 16 to 34-year-olds said they would book a holiday or break online, against 25% of over‑55s. The proportion of student online-travel bookers (60%) was three times higher than those of retired age (20%).

More than half (54%) of adults in better-off households expected to book online, as did a similar proportion (52%) of those with children living at home.

Londoners and those in the southeast showed a similar propensity to book on the internet (54%), while less than one-third did so in Yorkshire, the East Midlands and Scotland and just 36% across the north – suggesting a digital divide.

However, the greatest variation in the survey results was in the proportion planning to take an overseas holiday, rather than how they would book it.

TNS found more than one third (36%) of respondents did not expect to go overseas in 2013 and a further 4% were undecided.

That suggests 60% intend to have a holiday abroad – a healthy market in light of previous research showing less than half the adult population (44%) are likely to go away in any year.

It is important to note people often express an intention to go abroad at this time of year but subsequently fail to do so – the young being especially prone to this.

February’s TNS survey found three-quarters of 16 to 24-year-olds planned an overseas holiday (and 56% intended to book online). Yet previous TNS research which asked 16 to 24-year-olds whether they had a holiday abroad in the past 12 months found 60% had not.

Almost half (48%) of adults over 55 said they were not planning an overseas holiday this year; neither were half the adults in less well-off households (47%).

Most adults with children did plan a holiday (68%), compared with 56% of those with no children. But the former appear more dependent on finding a cheap holiday – 38% of those with children identifying price as an important factor in whether they go away, against 28% of those without children.

TNS group director of travel Tom Costley noted “significant age variations” in online booking habits but said: “The proportion choosing to book via a high street agent does not vary to any significant extent, irrespective of age.”

He added: “It’s evident that being able to access a cheap price allows some to go on a holiday which might otherwise not be available to them.”

Tui reduces losses and grows share in Q1

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Tui reduces losses and grows share in Q1

By Phil Davies

Tui reduces losses and grows share in Q1Tui Travel’s underlying operating loss was cut by 15% in the three months to December as the group’s ‘unique’ holidays continue to drive increases in UK market share.The operating loss reduced by £16 million to £93 million to give an underlying first quarter operating loss of £116 million.Issuing first quarter results for the period ending December 31, Tui Travel reported “significant” continued growth in UK cumulative market share with summer 2013 up 4% and the key January booking period up 2%, gaining on the 7% increase in the same period last year.

Unique holiday bookings in the UK, Nordics and Germany increased by 15%, 10% and 6% year-on-year respectively for summer 2013.

Direct distribution sales in the UK for summer 2013 grew to 90% from 89% with online sales accounting for 37%, up by 1% over the same period a year earlier.

Tui claims its accommodation wholesaler business “continues to build a global leadership position” with total transaction value up by 9% for this summer, driven by Latin America and Asia where TTV is up by 23%.

The group reported strong current trading with winter 2012/13 83% sold with higher margins and average selling prices in key source markets.

Summer 2013 bookings in the UK and Nordics are up 9% and 10% respectively with margins ahead of the prior year in key source markets.

Chief executive Peter Long said: “We are pleased to report that our strong trading momentum has continued with particularly encouraging growth in the UK and Nordics.

“Our leading position in the UK has further benefited from increased market share as a result of higher demand for our unique holidays. Across all our key markets demand for the overseas holiday remains strong, despite the overall economic environment.

“We are confident that our customer focused strategy is driving performance and based on current trading we expect to be towards the top end of our roadmap guidance of 7 to 10% underlying operating profit growth for the 2013 financial year.”

Tui said: “Positive trading momentum continues for summer, with a third of mainstream summer holidays sold to date.

“Customer demand for our unique holidays has allowed us to increase capacity in the UK, Nordics and Germany. In the UK we have again increased our market share year on year as a result of increased demand for our unique holidays.”

Tui Travel will issue a pre-close trading update on March 27.

Transformation plan starting to have impact, says Cook

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Transformation plan starting to have impact, says Cook

By Lee Hayhurst

Transformation plan starting to have impact, says CookThomas Cook said its business transformation plans were starting to have an impact as it announced higher margins in its first quarter to December.

The travel operator and retailer saw  revenues of £1,724 million in the three months to the end of December. And it achieved gross margin of 21.9%, up 1.3 percentage points over the comparable period last year, it said in a trading update.

The group said plans to achieve annual savings of £100 million over the next two years to 2015 were on track and a further £60 million of savings had been identifed.

Harriet Green, group chief executive, said she was particularly pleased with Cook’s UK performance.

“As we continue to strengthen Thomas Cook and determine our profitable growth strategy for the future, the power of our brand remains key to the transformation.

“We have seen stronger operating performances in our major markets – the UK, Germany and the Nordics. I am particularly pleased with the improved performance in the UK as the benefits of the turnaround plan are reflected in its operating results.

“Our business transformation is firmly on track. We have further strengthened our leadership team and the pace at which we are driving change gives me confidence that together we will achieve our near term objectives and much more.

“The business has generated higher gross margins than we did last year and this will remain an area of focus for us through the financial year.

“Our cost-out initiatives and improved cash management will be important contributing factors to the Group’s future performance and continue to receive strong focus in all parts of the business.

“Although global economic conditions and consumer confidence remain challenged, our business transformation is firmly on track.”

Cook said its Business Transformation programme was “firmly on track” to deliver on its three key elements:

• building an effective organisation: high quality executives, bringing a wealth of experience, appointed to the Thomas Cook leadership team;
• addressing costs and cash management: on track to execute announced £100m of cost reductions with a further £60m identified;
• profitable growth strategy: undertaken rigorous, and independently verified, market and customer research, to ensure strategy and future resource allocation is based on extensive and fact based information.

Cook said higher gross margins and lower overhead costs were reflected in the Group’s improved underlying operating which saw losses of £70 million compared to £93 million in 2012

It reported lower net debt of £1,559m, which had been reduced by £86m year on year and higher liquidity headroom of £290m, up £72m over the prior year due to improved cash management disciplines

In a statement it said: “Winter and Summer bookings are robust, in-line with expectations as our strategy of improved capacity management results in higher sale prices and improved margins.”

Cook also revealed the completion of the first phase of “one of the largest customer surveys undertaken in the sector” involving nearly 18,000 consumers from the UK, Sweden and Germany. The survey results have been combined with in-house data from Cook’s 23 million annual customers.

“The results, along with a profitability analysis of the industry by internal and external experts, will be used to shape our business model and future strategy, as well as accelerating our web transformation to create a web centre of excellence with channel ownership in each of our market segments,” the group said.