Despite little sign of economic recovery and low consumer confidence, the travel market remained relatively steady in 2012, with UK residents having made an estimated 50.3 million visits abroad, unchanged from 2011.
Package holidays are on the rise with nearly half of Brits (48%) booking a package holiday in 2012 compared to 42% in 2011 and 37% in 2010. 70% of consumers said ‘good value’ was essential when booking a holiday with 59% looking for low prices in 2013. This trend is believed to be fuelled by the 35-44 year age group, with over half (51%) booking an overseas package holiday in 2012. In addition, the research showed that 34% of consumers booked their holiday in advance with 68% stating it was to secure a better deal or cheaper price.
Greg Lawson, Head of Retail at Columbus Direct, said: “With the current economic uncertainty expected to continue through 2013, it is no surprise that people are looking for ways to stretch every penny. This is why there has been an increase in the number of people choosing holiday packages, and all-inclusive holidays in particular, instead of arranging their own flights and hotels independently.
With families struggling to get away, there is always a temptation to make travel insurance a lower priority. However, with less money around at home, the last thing anyone needs is a bill as a result of an accident, illness, lost phone or break-in on holiday. We always recommend taking travel insurance whenever you travel overseas but there are products to suit every pocket.”
Interestingly, younger travellers are taking more holidays, with those aged 15-24 taking an average of almost five breaks in the past 12 months, above the average of 3.5 breaks across all age groups.
Lawson continued: “The outlook for the high street continues to look positive this year with the number of people booking an overseas holiday through a high street travel agent rising to 27% in 2012, compared to 25% in 2011. With many making their first holiday booking on their own, this growth is most likely fuelled by the 15–24 age group which may suggest that social media and technology could be a worthwhile investment to enhance the travel agent experience.
“In addition, there has been a growth of investment by travel companies in mobile booking platforms as tablets and smartphones continue to grow in popularity. To grow in tandem, travel insurance companies need to be equally mobile to ensure they remain connected to this distribution channel.
“The risks of travel are always changing, as are the ways customers want to interact, and Columbus Direct believes that we have to change with our customers and our products reflect both the way customers want to buy insurance and what they want covered.”
