The United Kingdom's outbound travel industry is projected to hit a value of USD 90.46 billion by 2024. This momentum is expected to be sustained as it is rising at a CAGR of 8.60%, leading to an estimated valuation of USD 206.43 billion by 2034.
A number of factors contribute to this positive outlook. The elevation in household incomes has resulted in increased disposable income. This allows individuals to allocate more funds towards leisure trips such as overseas holidays. In addition, the strong British pound sterling has further boosted the affordability of international traveling for United Kingdom residents through favorable exchange rates with weaker currency countries.
| Attributes | Details |
|---|---|
| Industry Size of the United Kingdom in 2024 | USD 90.46 billion |
| Expected Industry Size of United Kingdom by 2034 | USD 206.43 billion |
| Forecasted CAGR between 2024 to 2034 | 8.60% |
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Work vacations for the Nomadic Workforce
The increase in remote work culture in the United Kingdom has boosted the workcation trend, where professionals mix both working and traveling. Travel companies can target this section by providing co-working spaces, reliable Wi-Fi connectivity, and extended stay packages in attractive destinations. Therefore, these professionals can combine work and tourism.
Luxury Travel Evolution
Luxury travel is moving on from traditional luxury to more authentic experiences throughout the United Kingdom. These include private tours with local guides, access to exclusive cultural events, or bespoke itineraries that uncover hidden gems. To meet this demand, travel companies can provide personalized itineraries that mirror the unique interests and tastes of luxury tourists.
Festival Tourism Takes Flight
Music festivals, food fairs, and cultural fetes have become popular tourist highlights. Hence, British travelers are incorporating these events into their sojourns, thus fueling travel needs for festival-oriented packages and logistics around main occasions. They may also collaborate with festival organizers to offer all-inclusive deals, including ticketing, transport, or lodging services.
Wellness and Spa Retreats
Individuals in the United Kingdom are looking after their health, visiting places with famous Spas, wellness resorts, and natural healing therapies. Yoga, meditation, spa treatments, and healthy food are included in a travel package. The traveler can unwind and rejuvenate while trying to focus on his or her physical as well as mental well-being.
Culinary Experiences
Food tours, cooking classes, and local market visits have gained immense popularity among travelers over the past few years. These include dining experiences like eating at local establishments, learning how to cook from top chefs, and tasting traditional meals and ingredients.
Principal Consultant
The section offers an analysis of the dominant segments influencing the demand outlook for outbound travel in the United Kingdom. Notably, the day trips and local gateways segment takes the lead with a 44.70% share in 2024. Following this, the online booking channel is estimated to secure a share of 29.60% in 2024.
| Dominant Segment by Type | Day Trips & Local Gateways |
|---|---|
| Share held by the Segment in 2024 | 44.70% |
Day trips and local getaways are likely to take 44.70% of the industry in 2024.
| Dominant Segment by Booking Channel | Online Booking |
|---|---|
| Share held by the Segment in 2024 | 29.60% |
Online booking platforms are likely to have 29.60% of the industry in 2024.
The outbound travel industry in the United Kingdom is a vibrant one, with many established players and new entrants competing against each other. Traditional travel agencies still have a strong presence, especially when it comes to complex itineraries or luxurious holidays.
They use their knowledge and relationships with customers to offer bespoke services and expert advice. Nevertheless, they are expected to embrace the online world and provide competitive rates as well.
Online travel agents (OTAs), such as Expedia and Booking.com, have emerged as key forces grabbing an increasing percentage of the industry. Their user-friendly portals, combined with a wide range of choices, including flights, hotels, and attractions, make them appealing to budget-conscious travelers who prefer convenience.
Specialized travel companies catering to specific interests like adventure travel, eco-tourism, or cultural immersion trips are gaining traction. These companies cater to a growing segment of travelers seeking unique and authentic experiences. Additionally, travel bloggers and social media influencers are emerging as powerful voices, influencing travel trends and potentially disrupting traditional marketing strategies.
Recent Developments Observed in the United Kingdom Outbound Travel Business
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5 Strategies for United Kingdom’s Outbound Travel Companies to Thrive
Embrace Digital Shift
Online portals are becoming increasingly popular among customers making travel bookings. Businesses need websites that are easy to navigate and mobile apps that offer seamless booking experiences at competitive rates. Moreover, AI-powered chatbots for customer support and personalized recommendations can improve the digital experience even more.
Tailor Experiences, Cater to Niches
The introduction of new niche travel segments creates opportunities for companies. Firms can specialize in adventure tours, eco-tourism outings, and cultural immersion trips or target certain demographics, such as families, singles, or digital nomads. Creating unique local experiences with curated itineraries and partnerships with niche providers is likely to cultivate customer loyalty.
Become a Content Hub, Build Trust
Before booking, travelers often look for inspiration and information. This can be achieved by producing engaging online content - blogs, social media posts, travel guides - about destinations, local attractions, and cultural differences. Moreover, making practices involved in sustainable tourism more visible may draw more conscious tourists into the fold.
Offer Flexibility and Value
Flexible travel options reign dominance. Offering customizable itineraries, last-minute deals, and cancellation policies that cater to changing plans can attract a wider audience. Consider incorporating travel insurance and activity bookings within your packages for additional value and convenience.
Prioritize Customer Experience
Building strong customer relationships is key to success. Personalized service goes beyond just booking. Offer pre-departure support, in-destination assistance, and post-trip follow-ups to ensure a seamless travel experience. Leveraging technology like chatbots and live chat support can enhance responsiveness and address customer concerns efficiently. By focusing on building trust and exceeding expectations, companies can cultivate loyal customers who will return for future trips.
The outbound travel industry in the United Kingdom is poised to reach USD 90.46 billion in 2024.
The industry is anticipated to surpass a valuation of USD 206.43 billion by 2034.
The demand for outbound travel in the United Kingdom is likely to rise at a CAGR of 8.60% from 2024 to 2034.
Day trips & local gateways are the leading outbound travel type in the industry.
The online booking channel is anticipated to lead the industry in 2024.
1. Executive Summary 2. Market Overview 3. Market Background 4. Market Analysis 2019 to 2023 and Forecast, 2024 to 2034 5. Market Analysis 2019 to 2023 and Forecast 2024 to 2034, By Type 5.1. Day Trips & Local Gateways 5.2. Museums 5.3. Pilgrimages 5.4. Religious and Heritage Tours 5.5. Others 6. Market Analysis 2019 to 2023 and Forecast 2024 to 2034, By Traveler Type 6.1. Independent Traveler 6.2. Tour Group 6.3. Package Traveller 7. Market Analysis 2019 to 2023 and Forecast 2024 to 2034, By Booking Channel 7.1. Online Booking 7.2. Offline Booking 8. Market Analysis 2019 to 2023 and Forecast 2024 to 2034, By Age Group 8.1. 0 to 20 Years 8.2. 21 to 40 Years 8.3. 41 to 60 Years 8.4. 60 Above 9. Market Analysis 2019 to 2023 and Forecast 2024 to 2034, By Region 9.1. England 9.2. Scotland 9.3. Wales 9.4. Northern Ireland 10. England Market Analysis 2019 to 2023 and Forecast 2024 to 2034 11. Scotland Market Analysis 2019 to 2023 and Forecast 2024 to 2034 12. Wales Market Analysis 2019 to 2023 and Forecast 2024 to 2034 13. Northern Ireland Market Analysis 2019 to 2023 and Forecast 2024 to 2034 14. Market Structure Analysis 15. Competition Analysis 15.1. Thomas Cook Group Plc 15.2. Trailfinders Group Limited 15.3. Saga Plc 15.4. Hogg Robinson Group Plc 15.5. Hays Travel Limited 15.6. The Globespan Group Plc 15.7. Lotus Group Ltd. 16. Assumptions & Acronyms Used 17. Research Methodology
Travel and Tourism
March 2024
REP-GB-15691
336 pages
Travel and Tourism
July 2022
REP-IN-3008
343 pages
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Outbound Travel Industry Analysis in the United Kingdom
