Travel and Tourism Market Review 2006

Released on = April 16, 2007, 9:19 pm

Press Release Author = Bharat Book Bureau

Industry = Marketing

Press Release Summary = Executive Summary

The UK travel and tourism industry serves three main markets: domestic tourism by UK
residents within the UK; outbound tourism by UK residents travelling abroad; and
inbound tourism by overseas residents travelling to the UK.


Press Release Body = Travel & Tourism Market Review 2006
Executive Summary

The UK travel and tourism industry serves three main markets: domestic tourism by UK
residents within the UK; outbound tourism by UK residents travelling abroad; and
inbound tourism by overseas residents travelling to the UK. In 2005, total
expenditure on UK travel and tourism was £69.11bn, a total of 235.2 million trips
were made and 1.36 billion overnight stays were made. Between 2001 and 2005, the
inbound sector was the best-performing of the three in terms of number of trips and
bed nights spent. The performance of the domestic market was more subdued.

The domestic travel and tourism market has experienced a number of difficulties
since 2001, including terrorist actions and the ongoing availability of low-cost
outbound air travel, which has made overseas holidays much more attractive and
economical.

Within the inbound market, the growing number of direct, low-cost services from
Eastern Europe to many regional airports across the UK has boosted short-stay
visitor numbers, and strong economic growth across much of Asia, most notably in
China, India and South Korea, is helping to increase tourism from these countries to
the UK.

Faced with repeated price wars on mass-market package-tour destinations such as
Spain and the Canary Islands, many tour operators in the outbound market have been
refocusing their strategies on niche sectors. Others are moving steadily away from
the congested short-haul market towards long-haul destinations and specialist
holidays, such as activity breaks.

The trend among consumers for organising independent travel over the Internet
continues, and the traditional travel agencies are finding it hard to survive in
their current format. Most are reducing the number of high-street branches they
operate, while others are refocusing their retail presence to address the change.
One leading chain, for example, is turning its travel agents into Web support
centres, which help customers to book online. This development could dramatically
redefine the role of the travel agent, resulting in further store closures in the
future.

There is concern within the travel and tourism industry that a growing number of
holidays or flights purchased online do not have insurance cover and, as a result,
could prove to be costly for the consumer should the airline, tour operator or hotel
go bankrupt before or while they are away. Many consumers are also opening
themselves to financial risk because they wrongly assume they are covered - either
through the travel operator or by their insurance - against companies collapsing. In
2005, the Civil Aviation Authority (CAA) and other regulatory bodies backed a
parliamentary bill to levy £1 on all air passengers leaving the UK, in order to
build up a fund to protect those left out of pocket by airline failures. The
proposal failed, however, and it is now up to holidaymakers to ensure that they are
financially protected.

The UK travel and tourism market is forecast to show further expansion between 2006
and 2010, with the outbound and inbound markets expected to outperform the domestic
market. Nevertheless, the hot summer of 2006 is believed to have boosted the number
of domestic tourists and expenditure, and could produce longer-term benefits if hot
temperatures are repeated in future years. Conversely, environmental concerns, such
as the high levels of carbon emissions from aircraft, together with the negative
impact of mass tourism on the environment in general, could lead to higher taxes
being imposed on the industry, which, in turn, could affect both inbound and
outbound visitor numbers.


Web Site = www.bharatbook.com

Contact Details = 207, Hermes Atrium,
Sector 11, Plot No.57
CBD Belapur

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