Front report looks at consumer decision drivers during recession

Consumers will continue to prioritise holidays in disposable household income as the UK moves out of recession; however overall volume of holidays and spending is down and forecast to remain lower than pre-crisis levels throughout 2010. Consumers will take fewer numbers of holiday trips, and to closer and/or cheaper destinations. Holidays will be more intensively researched and they will be based and planned on a specific budget. Escapism remains the primary motivating factors behind all forms of travel (domestic/overseas holidays and days out) and it becomes all the more important in these stressful times. Holiday consumers are knowledgeable and sophisticated, using their previous experiences of destinations of all types (domestic, overseas, day trips) in the information seeking and decision making processes. The internet and user generated content are both growing in importance as sources of information for consumers. However, they have not replaced traditional sources of information but are used in addition to them. The overall market for package holidays is stagnating, but the gap between consumers who independently organize holidays versus those who opt for packaged holidays is currently split fairly evenly, suggesting that consumers are willing to shop around for the best deals either independently or through a travel agent/tour operator. Cost transparency has proved a winning formulation and it can largely be attributed for the increasing success of the all-inclusive holiday market. Consumers are turned off by constant reminders of the economic situation and what it means in terms of their own spending. Communication therefore needs to remain recession sensitive but recession free.

The entire report can be viewed by Marketing Industry Network members on the MIN site.