Beyond Staycation. April Prepared by Trajectory

Transcription

1 Beyond Staycation April 2015 Prepared by Trajectory

2 Where were we? Expectations in March 2014 Consumers aware of the recovery and moving out of a recessionary mindset, showing higher levels of confidence and lower concern but they hadn t started to feel the direct impacts of recovery yet This was reflected in holiday expectations for 2014: while there was a desire to take more long breaks abroad in the future, there was no shift in 2014 plans (only 0.6% expected to switch domestic trips for foreign ones) Expectations in Sept 2014 As the downturn officially ended, confidence continued to improve and people felt much more secure in their own finances. Cutting back behaviours continued to wane with the proportion saying they were spending less on holidays falling by 5% Consumers displayed a greater willingness to plan big for 2015 (although many were still cautious) and domestic breaks looked likely to be short rather than long

3 What actually happened? Cautious consumers look to make the most of the trips they can take Signs of optimism at the end of last year are evaporating as consumers are concerned the recovery may be passing them by This has led to increased cutting back behaviours in everyday spending especially around groceries and energy, but this prudence is helping to fund spending on leisure and holidays Holidays in 2014 changed only slightly on 2013, with a small shift towards longer trips abroad, at the expense of long trips in England. The England short break market remains the same. For those that have holidayed in England, this wave provides further evidence that the appeal of England goes beyond finances (even though they are important) with a rise in the number returning to places they d liked before Significant number of trips are malleable either because they are impulsive, and specific triggers are powerful motivators, or because they change during the planning process and even routine breaks can change in this way In the future outlook remains cautious, with a clear desire amongst consumers for longer trips abroad and as much else as they can get.

4 The national economy is continuing its recovering from the downturn 4.0 UK GDP growth, % year on year Real Forecast Source: Oxford Economics 2014

5 Inflation is falling, while wages are (slowly) growing (for some) 7.0 Wage and price inflation growth, % year on year 6.0 Consumer Price Index Wages and salaries - real Consumer Price index - forecast Wages and salaries - forecast Source: Oxford Economics 2014

6 But uncertainty and instability remain at home and abroad

7 Majority still not feeling the recovery - Younger most likely to be feeling better off (26%) - Public sector workers most likely to be feeling worse (24%) Extent to which people are feeling the economic recovery (%) I feel much worse off than I did I feel slightly worse off than I did I feel the same as I did I feel slightly better off than I did I feel much better off than I did 10 7% 8% 9 14% 15% 8 21% % 56% 52% 4 15% 19% 18% 3% 3% 2% March 2014 Sept 2014 Feb 2015 Have nots: Feeling worse off Worried Unlikely to be taking any holidays On the fence: Haven t felt the recovery Concerned, but optimistic Have cut back on holidays in some way Haves: Feel fine & optimistic Not really concerned (what recession?) Taking holidays and plan big for 2015 and beyond Source: VisitEngland Staycation Monitor Feb 2015 / Base 1,002 Q2d There has been a lot of talk lately about the economy recovering from the downturn of the last few years. To what extent are you feeling the recovery?

8 Concerns start to rise but little evidence of direct impact - Public sector workers consistently more concerned/worried - Squeezed middle demographically also more likely to be concerned % agreeing with each of the following statements, Sept 13- Feb 15 61% 59% 6 59% 53% 53% 5 5 Sep-13 Mar-14 55% 55% Sep-14 49% 47% 44% 44% 45% Feb-15 42% 41% 42% 39% % 37% 35% 34% 29% 29% I am very concerned about the downturn I am concerned about unemployment I am worried about making ends meet The downturn is going to get worse before it gets better I'm fed up with hearing about the downturn We are over the worst of the downturn The country I live in is one of the worst affected Source: VisitEngland Staycation Monitor Feb 2015 / Base 1,002 Q1 To what extent do you personally agree or disagree with each of the following statements about the economic downturn?

9 Greater concern but only slightly more say they are affected - While concern has risen, this has not translated into direct impact - For many, the concern may be a result of worrying that the recovery may pass them by % agreeing with each of the following statements, Oct 08 Feb % 13% 17% 12% 9% 6% 6% 9% 8% 8% 11% 16% 17% 22% 28% 19% 16% 15% 13% 13% 14% 47% 52% 5 52% 53% 51% 54% 52% 51% 53% 52% 55% 52% 15% 17% 18% 17% 19% 24% 24% 25% 25% 27% 25% 27% Oct/Nov 08 Feb-09 Jun-09 It hasn't affected me yet, and I'm really not worrying It hasn't affected me yet, but I'm concerned that it might do It's affected me a little It's seriously affected me 18% 13% 13% 15% 51% 53% 18% 19% Oct-09 Feb-10 Sep-10 Mar-11 Sep-11 Feb-12 Sep-12 Feb-13 Sep-13 Mar-14 Sep-14 Feb-15 Source: VisitEngland Staycation Monitor Feb 2015 / Base 1,002 Q2a Which of the following best describes your feelings about the economic downturn?

10 More people expect no change in the short term and confidence is down for the next 3-4 years - Only 17% report feeling more optimistic now than they did a year ago 10 View of personal financial situation next year/next 3-4 years (%) Don't know Much worse A little worse No better or worse A little better Much better % 8% 6% 16% 14% 17% % 33% 32% 32% 31% 28% 9% 9% 9% Mar-14 (3-4 years) Sep-14(3-4 years) Feb-15 ( 3-4 years) Source: VisitEngland Staycation Monitor Feb 2015 / Base 1,002 Q2d How do you think you personal financial situation will change in the coming year / next three or four years? Do you think it will become...

11 Optimists and pessimists Optimists: those believing that we are over the worst of the downturn (34%,-4% on Sept) 39% of men and just 29% of women are optimists. More likely to be those working FT (37%) than PT (31%) Some concerns still exist of those worried about making ends meet are also optimists Slightly more freedom in holiday behaviours 41% of those that had a foreign holiday are optimists Pessimists: those believing that the economic situation will get worse before it gets better (45%,+3% on Sept) Even age and gender split Those working PT likely to be pessimists (51%) Pessimism likely to be derived from own experience 7 of people who feel seriously affected are pessimists More than half of those who took no holidays in 2014 are pessimists

12 Most at least slightly aware of the exchange rate but only 18% follow it closely 4 35% 37% More are completely unaware of it than follow it closely 25% 18% 25% Level of awareness varies widely by holiday behaviour: 15% 5% Very aware of it - I follow it closely Aware of it - I look at it from time to time Slightly aware of it - I only look if I'm planning to go abroad Not aware of it at all The proportion who follow it closely: 28% of those who went abroad in % of Switchers 9% of England Loyalists Source: VisitEngland Staycation Monitor Feb 2015 / Base 1,002 Q19 To what extent would you say you are aware of the exchange rate as it affects the value of the pound compared to other currencies

13 Cutting back behaviours Consumers are less likely to be cutting back on leisure spending, and are funding this through greater emphasis on everyday savings. For those that are still cutting back, the majority don t expect to stop soon although the proportion who do is increasing. This wave has shown a slight shift in cutting back priorities: Fewer people say they are cutting out little luxuries (down 9%) Fewer people say they are spending less on holidays (down 2%) However, the length and depth of the downturn has caused some behaviours to become more entrenched particularly everyday consumer coping mechanisms. In addition, many of those cutting back are doing so because of ongoing financial pressures Of those who are still cutting back on holidays, the measures are less extreme Fewer people say they are taking fewer holidays (down 3%) Fewer people say they are taking no holidays (down 4%)

14 Changes to everyday behaviour helping funding treats & trips - Those who are cutting back more on everyday spending are more likely to feel affected by the downturn (24% seriously), and as likely as average to feel confident about the next year - They are also wary about the future 53% think the downturn will get worse before it gets better - This indicates that this behaviour is motivated by finances rather than a discretionary approach to cost-cutting and thrift Cutting back less Cutting back more % 37% 34% 32% 51% 53% 35% 38% 18% 21% Cutting out little luxuries Spending less on holidays Being more careful in the supermarket Using a cheaper supermarket Changing energy supplier Sep-14 Feb-15 Source: VisitEngland Staycation Monitor Feb 2015 / Base 1,002 Q3 In which, if any, of the following ways are you cutting back the amount you spend?

15 The end of holiday cutting back is in sight for more but everyday behaviours remain high, and increasingly entrenched % not expecting to stop holiday cutting back behaviour % not expecting to stop general cutting back behaviour Sep-14 Feb Sep-14 59% 6 52% 52% Feb-15 55% 47% 75% % 85% 83% 81% 75% 73% 51% 53% 4 Choosing cheaper destinations in England/UK Taking holidays in England/UK rather than abroad Spending less on going out on holiday Cheaper travel Using a cheaper supermarket Being more careful with energy Being more careful in the supermarket Spending less on holidays Source: VisitEngland Staycation Monitor Feb 2015 / SMALL SAMPLE Base (only those who are spending less on holidays) Q4a How long will you be doing them?

16 Holiday Behaviour 2014

17 Slight decline in domestic breaks made up by rise abroad - Short breaks in England same as 2013, long down 3% - All trips abroad up by 4% on 2013 Holidays taken in (%) 2013 Long Short Total 2014 Long Short Total England Rest of UK Any UK Abroad No holidays Source: VisitEngland Staycation Monitor Feb 2015 / Base 1,002 Q6a Which of the following holidays/breaks did you take in 2014?

18 Less compromise in 2014 than % more people getting the trip they wanted at the price they wanted 6 5 Mar-14 Feb-15 49% 56% 4 22% 17% 15% 16% 14% 11% I had to compromise on some aspect of the trip in order to stay within my budget I had to spend more than I'd planned in order to get the trip I wanted I booked the holiday I wanted at the price I wanted I didn't book - someone else did Source: VisitEngland Staycation Monitor Feb 2015 / Base 574 Q8d Thinking of your last trip in England, which of the following statements best describes your experience when booking?

19 Drivers of domestic holidays: beyond cost Cost remains an important reason consumers holiday in England rather than abroad, but it is rarely the sole, or even the dominant driver. The growth in domestic holidays in recent years is driving repeat visits, as are the established trends of convenience, ease and liking England The idea of England as a cheaper option is waning, with fewer consumers especially for long breaks saying that this was a major driver in their decision to stay at home Instead, England has other strengths driving domestic tourism including liking England (the top reason for long breaks and now a bigger reason for short ones), it being easier and less hassle and the availability of discounts In addition, for long breaks, a legacy effect of the staycation is emerging with 1 in 3 saying they returned to a place they liked before

20 The appeal of England is a bigger driver than finances MAIN reason for domestic short break MAIN reason for domestic long break Net: Pro England 37% Net: Pro England 64% Net: Financial Net: Financial 18% Net: Easy/convenient 12% Net: Easy/convenient 9% It's where friends/family were 21% To return to a place I'd liked before 23% To go somewhere new/explore I got a good discount/special Financial - cheaper than abroad I like England 13% 12% 11% 9% I like England Financial - cheaper than abroad To go somewhere new/explore Easier to holiday in England/hassle 18% 15% 9% 6% Source: VisitEngland Staycation Monitor Feb 2015 / Base 522/181 Q6d What was your main reason for taking a trip in England rather than abroad?

21 Financial reasons are less prominent than liking England - Discounts for Short Breaks up 5% to YOY - 13% drop in those saying financial reasons for a long break in England - 5% rise in taking a long trip in England to return somewhere they liked Reasons for short/long breaks in England (net %) Net: Pro England 57% 7 Net: Financial Net: Easy/convenient 24% 28% 36% 36% Long trips Short breaks Net: Other 25% 35% Source: VisitEngland Staycation Monitor Feb 2015 / Base 522/181 Q6d What was your reason for taking a break in England in 2014?

22 For those holidaying in England more (i.e. switchers), finances dominate - Cost of passports/travel insurance a barrier to trips abroad - Other issues also emerge caring responsibilities/avoiding hassle - As well as positive reasons to stay in the UK Reasons for holidaying more in the UK (%) Net: Financial Net: Easy/convenient Net: Pro England Net: Other 13% 34% 65% 9 Financial - Cheaper than going abroad It's easier to take short breaks in England I like England/the UK It's easier to get offers for England (or the UK) Too much hassle to go abroad The cost of travel insurance It's easier with a young family The cost of passports is too high 22% 15% 14% 14% 12% 34% 44% 58% Source: VisitEngland Staycation Monitor Feb 2015 / Base 170 (only those holidaying more in England/the UK) Q5b You said you re holidaying more in England/the UK. Why is this?

23 Planning and booking

24 Planning and booking what we already know Qualitative research last year identified 3 key stages of planning a short trip: Need wanting to go away Ability able to go away (time/cost) Trip specific trigger includes specific location/activity and deal Furthermore, 3 key types of holiday emerged based on the nature of the planning involved Impulsive / last minute trips with little research, often somewhere known Considered / planned trips somewhere new, longer lead time, more planning Routine / regular trips annual or traditional event, same place/people

25 1 in 5 short breaks in England are spur of the moment - Women more likely to take last minute trips abroad (16%/9%) - Younger more likely to take impulsive trips everywhere - Routine trips dominated by older % 18% 15% 7% 14% % 78% 74% 76% 8 79% Routine/Regular Considered/Planned Impulsive/last minute Short break in England 5% Long holiday in England 16% Short break in rest of UK 9% 13% Long holiday in rest of UK Short break abroad 7% Long holiday abroad Source: VisitEngland Staycation Monitor Feb 2015 / Base: Q6ab:For each holiday you took, please say if this trip was impulsive, considered or routine

26 Impulsive trip takers: Profile Demographically, impulsive trip takers tend to be younger and female especially for domestic short breaks While they are as likely to feel affected by the downturn, they are more optimistic about the future 25% 15% 5% 18% Impulsive short breaks in England (% of all who took a domestic short break) 22% 25% 17% 17% 21% 24% 25% 17% 23% Source: VisitEngland Staycation Monitor Feb 2015 / Base: 522 Q6ab:For each holiday you took, please say if this trip was impulsive, considered or routine

27 28% of short breaks and 39% of long trips change during the planning process - For short breaks, this is less likely to be for those cutting back on holiday spend (76% go to the original place) - Strong age bias older least likely to change, younger most likely When you started thinking about your last trip in England, were you considering going to another destination than the one you actually went to? Short break Longer holiday 72% 61% % 16% 11% 12% 4% 7% Yes - I was originally thinking about another destination in England Yes - I was originally thinking about another destination in the rest of the UK Yes - I was originally thinking about another destination abroad No - I went to the same destination I was thinking of at the start Source: VisitEngland Staycation Monitor Feb 2015 / Base: 475/99 Q8f: When you started thinking about your last trip in England, were you considering going to another destination than the one you actually went to?

28 Trip-changers Like the impulsive short break takers, trip changers are also younger, but more likely to be male, and more likely to be in FT work Significant numbers of those who feel affected by the downturn are likely to change their trip 45% 4 35% 25% 15% 5% Trip changers (% of all who took a domestic short break) 41% 36% 35% 31% 25% 26% 13% 25% 28% Source: VisitEngland Staycation Monitor Feb 2015 / Base: 475 Q8f: When you started thinking about your last trip in England, were you considering going to another destination than the one you actually went to?

29 Even routine trips can change during the planning process 35% % of each type of trip that changed in some way during the planning process Impulsive trips are the most likely to be altered (32%) but only marginally more so than considered ones () 25% 3% 13% 5% 13% 2% This is likely to be a result of the lack of flexibility last minute trips may have often tied to specific deal or opportunity 15% 5% 16% 12% 13% 5% Impulsive Considered Routine Another destination abroad Another destination in UK Another destination in England Considered trips, on the other hand, are more open to change due to the longer lead in time Even routine trips can change () indicating that the routine element is dictated as much by time and people as by place Source: VisitEngland Staycation Monitor Feb 2015 / Base: 170 Q8f: When you started thinking about your last trip in England, were you considering going to another destination than the one you actually went to?

30 Fewer short breaks booked last minute - Almost a third of domestic short breaks booked a month or less in advance - Younger more likely to book a week or less in advance (15%) & more likely overall (36%) - Switchers less likely to wait until a month before () How far in advance did you book the trip? (domestic short breaks) 35% 25% 23% 26% 32% 32% 23% Mar-14 Feb-15 15% 5% 7% Over 6 months Between 6 and 3 months Between 3 months and 1 month 16% Between 4 and 2 weeks 11% 8% Between 2 weeks and 1 week 4% 7% 2% 1% 1 week or less The day before or closer Source: VisitEngland Staycation Monitor Feb 2015 / Base: 475 Q8f: How far in advance did y6ou book it/was it booked?

31 Slight fall in last minute long breaks - Vast majority booked at least a month in advance - Younger most likely to do so (29%) - Those spending less on holidays also likely to book later (23%) How far in advance did you book the trip? (domestic long breaks) 35% Mar-14 Feb-15 25% 23% 26% 27% 25% 29% 15% 12% 9% 5% Over 6 months Between 6 and 3 months Between 3 months and 1 month Between 4 and 2 weeks 5% Between 2 weeks and 1 week 2% 1% 1 week or less The day before or closer Source: VisitEngland Staycation Monitor Feb 2015 / Base: 99 Q8f: How far in advance did y6ou book it/was it booked?

32 Last minute bookers Younger and female skew, although older are almost as likely to book a month in advance or less Last minute bookers, by time of booking (% of all taking any England trip) 35% 25% 15% 5% 11% 25% 17% 2 weeks or less 1 month or less 33% 33% 19% Men Women Optimistic about finances 12% 27% 11% 29% 16% 29% 15% 15% Things will get worse 25% Seriously affected 14% Total 29% Source: VisitEngland Staycation Monitor Feb 2015 / Base: 574 Q8f: How far in advance did you book the trip?

33 Booking & planning: opportunities to influence domestic breaks There is potential to influence a significant number of trips in total, 16% of all trips taken in 2014 were impulsive, and of domestic trips were different to the original plans Across last minute bookers, trip changers and impulsive trip changers, common characteristics emerge these consumers are likely to be younger, in work, and although cautious about the recovery, beginning to feel more optimistic about their future In line with our qualitative findings, therefore, consumers are receptive to opportunities to maximise their holidays (and spending behaviour analysis suggests they are gearing their spending proactively towards this), with last minute and impulsive trips the most suggestible and easy to influence However, even routine trips, and those with longer lead in times are subject to change with price, deals and destination all moveable as long as the trip purpose, or company remains the same

34 Holidays in 2015 & beyond

35 Balance still lies with those expecting to take less For each of the following types of holiday, do you expect to take more, less or the same in 2015 as you did in 2014? More in 2015 than in 2014 About the same in 2015 as in 2014 Less in 2015 than in 2014 Don't know % 34% 4 43% 33% 27% % 15% 13% 13% 18% 18% 4 54% 45% 41% 41% 41% 43% 11% Short breaks in England 5% 6% 4% Long holidays in England Short breaks in rest of UK Long holidays in rest of UK 8% Short breaks abroad 13% Long holidays abroad Source: VisitEngland Staycation Monitor Feb 2015 / Base: 931 Q11a: For each of the following types of holiday, do you expect to take more, less or the same in 2015 as you did in 2014?

36 YOY decline in those expecting to take fewer domestic breaks - But pessimism increased since end of summer Expecting to take more Expecting to take less 16% 14% 12% 8% 6% 4% 2% 14% 11% Short breaks in England 5% 5% Long holidays in England 8% 7% Short breaks abroad 14% 13% Long holidays abroad 18% 16% 14% 12% 8% 6% 4% 2% 16% 13% Short breaks in England 19% 19% 19% 18% 18% 15% Long holidays in England Short breaks abroad Long holidays abroad Feb-14 Feb-15 Feb-14 Feb-15 Source: VisitEngland Staycation Monitor Feb 2015 / Base: 931 Q11a: For each of the following types of holiday, do you expect to take more, less or the same in 2015 as you did in 2014?

37 The appeal of England is driving domestic trips - Practical and financial reasons decline although this could be related to slight decline in those expecting to take more Reasons for more short breaks Reasons for more long holidays I really like taking short breaks in England, don't see why to stop 24% I really like taking long holidays in England, don't see why to stop 28% Nice to go somewhere you feel you know 23% Nice to go somewhere you feel you know 28% Easy to book at last minute 22% I want to support England I plan on seeing friends/ family more this year 19% I plan on seeing friends/ family more this year 17% I prefer taking more short breaks and fewer long holidays 15% Easier to book at last minute 15% I'd like to go abroad but can't afford to 14% Getting back to normal 11% 4 Source: VisitEngland Staycation Monitor Feb 2015 / SMALL SAMPLE: 100 / 46 Q11a: Why do you expect to take more holidays in England this year?

38 Finances dominate those taking fewer domestic trips - 18% say long holidays don t appeal - others want to go somewhere new Reasons for fewer short breaks Reasons for fewer long holidays I feel worse off financially 41% 39% I feel worse of financially 42% 39% Nice to go somewhere new 14% 19% Nice to go somewhere new 22% 22% I want to prioritise long holidays 18% 19% Long holidays in England don't appeal 18% Other 8% 16% Weather puts me off 14% 15% Weather puts me off 8% 13% Mar-14 England doesn't excite me 5% Mar-14 Feb-15 I'd rather just take it abroad 13% Feb-15 Other 7% Source: VisitEngland Staycation Monitor Feb 2015 / SMALL SAMPLE: 120 / 141 Q11a: Why do you expect to take less holidays in England this year?

39 Declining numbers expect their domestic break to be their main one - Consumers able to go abroad increasingly prioritising the long break - Over a quarter will take their main holiday in England 5 45% 4 35% 25% Which of the holidays/breaks that you have taken this year/ expect to take next year will be your main or big holiday? Mar-14 Feb-15 45% 42% 15% 5% 16% 15% 14% 11% 3% 6% 3% 4% 12% Short holiday in England Long holiday in England Short holiday in rest of UK Long holiday in rest of UK Short holiday abroad Long holiday abroad None of them, I did not have/will not have a main/big holiday Source: VisitEngland Staycation Monitor Feb 2015 / Base 1002 Q6b Which of the holidays/breaks that you have taken this year/ expect to take next year will be your main or big holiday?

40 Very slight shift towards taking a big holiday 4 35% More generally speaking, which of the following do you expect to do in 2015? 37% 37% 25% Mar-14 Feb-15 24% 27% 15% 17% 13% 13% 16% 5% 9% 8% Take multiple short breaks but no big holiday Take multiple short breaks and a big holiday Take a big holiday with only one or two short breaks Take only a big holiday, and no short breaks Too early to say/don't know yet Source: VisitEngland Staycation Monitor Feb 2015 / Base 1002 Q11f More generally speaking, which of the following do you expect to do in 2015?

41 Little change from a year ago - balance just lies with taking more trips abroad - Economic uncertainty reflected in unwillingness to plan ahead around 8 expect no change or don t know - However, those that do say indicate more short breaks in England and more long trips abroad Thinking about the longer term (3-4 years) will you take more, less or the same number of trips than you will this year? 29% 9% 49% 13% Short breaks in England 4 12% 46% 49% 43% 38% 37% 5% 6% 4% Long holidays in England Short breaks in rest of UK Long holidays in rest of UK More About the same Less Don't know 39% 34% 11% 38% 41% 12% 15% Short breaks abroad Long holidays abroad Source: VisitEngland Staycation Monitor Feb 2015 / Base 1002 Q11f Thinking about the longer term (3-4 years) will you take more, less or the same number of trips than you will this year?

42 Planning 2014 and 2015 comparison - Slightly higher booking both domestic and abroad - Fewer people saying they re unlikely to go abroad I haven't really thought about it yet I'm unlikely to take a holiday/ break in 2015 I haven't booked or researched anything yet, but I'm likely to take a holiday/ break in 2015 I've researched a holiday/break for 2015, but I haven't actually booked it yet I've already booked a holiday/ break for 2015 March 2014 Feb % 21% % % 33% % 27% % % 13% 13% 13% 18% 22% England Abroad 12% 13% 24% England Abroad Source: VisitEngland Staycation Monitor Feb 2015 / Base 1002 Q13a/b Which of the following best describes the extent to which you ve planned your holidays in England/Abroad?

43 Implications

44 Key findings The recovery continues at national level but continues to evade people. The effect this wave has been increased concern about the downturn and increased caution about the short term future although this has not translated into behaviour changes (yet) Everyday spending is increasingly subject to some form of cost-saving measure in order to fund greater spending on treats and holidays England remains very competitive as a holiday destination, especially for short breaks. There are also indications that the drivers of domestic trips are increasingly less likely to be practical or financial and more likely to be driven by wanting to explore England or return to a previous destination Between 30-4 of all domestic trips change between being planned and booked indicating scope to influence and encourage trips Consumers remain cautious about the year ahead, but indicate that their long term holiday plans include a balance of short breaks in England with longer trips abroad

45 Where next for the staycation and why The staycation is currently being sustained by economic uncertainty with some evidence from this data that as people feel better off, they will take long foreign trips at the expense of domestic ones There will be no big shift until economic recovery is more concretely underway, and given consumers current cautiousness, this year, as in 2014 we are likely to see only a gradual increase in overseas travel In the short-medium term it is likely the staycation will continue to decline as consumers feel better off resulting in fewer longer trips in England as pent up demand and greater affluence encourages people to go abroad. As a short break destination, England will remain competitive in both the short term and beyond In the longer term, it is possible that the staycation will rally: the length and depth of the downturn ensured consumers were more likely to holiday in England, and their positive experiences of those trips will spur repeat visits and a legacy effect

46 Thank You

47 Appendix

48 Within holiday spending, consumers continue to move away from cutting back Money-saving holiday behaviours (% of all) Taking fewer holidays overall 12% 11% 14% Not taking any holidays 12% 11% 15% Mar-14 Cheaper accommodation Spending less on food/drink on holiday 6% 7% 9% 8% 8% 9% Sep-14 Feb-15 Taking holidays in England/UK 6% 8% 9% Going to England/UK destinations that are nearby 6% 6% 9% Choosing cheaper destinations abroad 5% 5% 7% Cheaper travel 6% 5% 8% Source: VisitEngland Staycation Monitor Feb 2015 / Base 1,002 Q4a How are you cutting back in the amount you spend on holidays? 5% 15%

49 65% have made changes to their holiday behaviour but little change over last year % agreeing with each of the following statements 4 35% 25% 15% 38% 35% 32% 25% 21% 22% Mar-14 Sep-14 Feb-15 22% 17% 17% 18% 17% 16% 15% 15% 9% 7% 7% 5% It hasn't changed at all I've cut back on holiday spending I'm holidaying more in England (or the rest of the UK) and less abroad I've stopped going on holiday altogether I'm taking more short breaks and fewer long trips I'm trying new types of activity, accommodation or holiday destination Source: VisitEngland Staycation Monitor Feb 2015 / Base 1002 Q5 Overall, how do you feel your holiday behaviour has changed over the past few years? Please select all that apply

50 More, less or the same 2014 and 2015 compared Don't know Less in 2014 than in 2013 About the same in 2014 as in 2013 More in 2014 than in 2013 Don't know Less in 2015 than in 2014 About the same in 2015 as in 2014 More in 2015 than in % 5 35% 19% 14% 41% 37% 41% 46% 15% 34% 37% 19% 37% 28% 19% 39% % 13% 54% 34% 15% 4 43% 13% 13% 45% 41% 41% 33% 18% 41% 27% 18% 43% 14% Short breaks in England 5% 8% 5% 7% Long holidays in England Short breaks in rest of UK Long holidays in rest of UK Short breaks abroad 14% Long holidays abroad 11% Short breaks in England 5% 6% 4% 8% 13% Long holidays in England Short breaks in rest of UK Long holidays in rest of UK Short breaks abroad Long holidays abroad Source: VisitEngland Staycation Monitor Feb 2015 / Base: 931 Q11a: For each of the following types of holiday, do you expect to take more, less or the same in 2015 as you did in 2014?

51 More, less or the same (Next few years) 2014 and 2015 compared More About the same Less Don't know 27% 49% 38% 16% 41% 35% 46% 49% 12% 35% 4 14% 35% 31% 12% 38% More About the same Less Don't know 29% 9% 49% 4 12% 43% 38% 46% 49% 37% 39% 11% 38% 34% 41% 14% Short breaks in England 5% 8% 4% Long holidays in England Short breaks in rest of UK Long holidays in rest of UK 11% Short breaks abroad 18% Long holidays abroad 13% Short breaks in England 5% 6% 4% Long holidays in England Short breaks in rest of UK Long holidays in rest of UK 12% 15% Short breaks abroad Long holidays abroad Source: VisitEngland Staycation Monitor Feb 2015 / Base: 931 Q11a: For each of the following types of holiday, do you expect to take more, less or the same in 2015 as you did in 2014?

52 Planning 2014 and 2015 comparison - Slightly higher booking both domestic and abroad - Fewer people saying they re unlikely to go abroad I've already booked a holiday/ break for 2015 I've researched a holiday/break for 2015, but I haven't actually booked it yet I haven't booked or researched anything yet, but I'm likely to take a holiday/ break in 2015 I'm unlikely to take a holiday/ break in 2015 I haven't really thought about it yet 35% 25% 18% March % 23% 22% 33% 21% 35% 25% Feb % 21% 18% 27% 23% 15% 13% 13% 11% 15% 12% 13% 13% 5% 5% England Abroad England Abroad Source: VisitEngland Staycation Monitor Feb 2015 / Base 1002 Q13a/b Which of the following best describes the extent to which you ve planned your holidays in England/Abroad?

53 Booking and planning short breaks Over 6 months Between 6 and 3 months Between 3 months and 1 month Between 4 and 2 weeks Between 2 weeks and 1 week 1 week or less The day before or closer Total Over 6 months 54% 36% 9% 1% 10 Between 6 and 3 months Between 3 months and 1 month Between 4 and 2 weeks Between 2 weeks and 1 week 3% 66% 24% 3% 2% 1% 1% 10 2% 9% 64% 21% 3% 1% 1% 10 2% 3% 11% 52% 23% 9% 10 7% 11% 11% 4% 43% 25% 10 1 week or less 4% 8% 8% 15% 58% 8% 10 The day before or closer 4 10