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Holiday Condence Index Summer 2014 Summary o key ndings or the 12 months rom June 2014 to May 2015 ● A drop in overall condence levels has resulted in a one point all in the Holiday Confdence Index (HCI) to 43. This reects a slight decline in the intention to book holidays abroad by those who travelled over the past 12 months and may result rom concerns expressed about holiday booking costs, which has led to a rise in the Cost o Booking Index ● Despite urther increases in the number o consumers who believe the overall economy will improve, holiday condence is inextricably linked to job security and condence in personal nances, both o which remain largely unchanged since the last survey. ● The increased condence about the economy is not reected ully in attitudes to travel, where the positive mood reported in March is now more subdued. Slightly ewer people say holidays abroad are important to them, while there has been a decline in those who prioritise ATOL protection and who think overseas trips are good value or money ● Despite this, over hal o consumers (56%) intend to holiday abroad and 54% have booked their rst trip, while nearly a third have booked a second one. Britain’s poor weather earlier in 2014 has had an impact, as almost hal o respondents admit this has made them more likely to holiday abroad. Furthermore, the numbers who say they will cut other spending to aford a trip abroad has risen ● Overall the holiday market looks stable. Among consumers who holidayed abroad in the past year and intend to travel in the coming 12 months, there have been small increases in those planning to take more holidays and those intending to take longer trips ● Almost a quarter o consumers expect the cost o booking a holiday to rise in the coming year and one-in-ve also anticipate spending more while abroad. However, they are not intending to increase the amount o spending money they take with them ● Europe continues to dominate the holiday market, although North America has gained ground. Demand may have been boosted by the strength o sterling against the US and Canadian dollars ● Although over three-quarters o consumers make bookings online, there has been a two percentage point rise in the numbers who would rather book ace-to-ace or by telephone. While almost two- in-ve book independently, a trend more marked among younger consumers, overall more people pick package holidays ● Financial rather than time constraints remain the main obstacle to holidaying abroad. C About the First Rate Holiday Confdence Index Created by First Rate, the UK’s leading oreign exchange provider, the Holiday Confdence Index is published three times a year in April, July and November as a monitor o the consumer appetite or overseas holidays. It is produced in partnership with the Institute o Travel & Tourism, the University o Wolverhampton and YouGov. Each Holiday Confdence Index is compiled by surveying a nationally representative sample o approximately 5,000 consumers online – 5,052 or the latest index - to gauge their holiday intentions, the planned requency and duration o these holidays and associated spending or the next 12 month period. An index is assigned to each o these six key elements o holiday intention which are then combined to create a detailed, industry-specic, composite index o aggregated consumer ‘holiday condence’ or any business with an interest in the UK outbound holiday market (see page 12 or methodology and analysis details). The ollowing pages provide detailed breakdowns o each index as well as covering holiday constraints, attitudes and behavior. M S The current index score appears within the main sundial moti – shown here as ‘C’ while the previous scores (March 2014 and September 2013) are indicated here by an ‘M’ and ‘S’ respectively.
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