The BDRC Continental Holiday Trends Report 2015 shows that 82% of the 1,009 adults aged between 20 and 64 questioned in January expect to spend the same or more on a holiday in the next 12 months as they did last year, an improvement on the 76% who said the same in 2014.

Associate director Jon Young said a higher number of destinations were being considered by consumers (2.83) for a “proper break”, compared with the 2.64 destinations under consideration in 2014.

And the destinations on the list are increasingly overseas, with 80% saying they are considering holidays abroad - part of a continued upward trend from 2012 when numbers bottomed out with just 66% considering foreign travel.
Less interest in the UK

The growth is similar to the 16 percentage-point drop seen since 2012 in the number considering a UK holiday, bringing it to 42%.

However, the news is not positive for every destination, with western Europe and the Mediterranean down 4% as the intended region for a trip.

Instead, eastern and central Europe are on the up with an increase of 5%, while long-haul is also performing strongly. The US and Canada are up 8%, Central and South America 6%, Asia 5% and Australia and New Zealand 3%.

Young said this trend was largely driven by Generation Y - people aged 20 to 34 - which far outstrips any other age group in wanting to visit central and eastern Europe, Australasia, Africa, the Caribbean and Central and South America.

Young added: “Generation Y looks for something new and it definitely seems to permeate every part of their lives; it is driven by social media, where people are constantly showing off the things they’re doing.”

As a result of reaching or spending early adulthood in the wake of the 2008 global financial crash, Young said their priorities had fundamentally changed.

“The inability to buy a house or having less disposable income has led this generation to seek experiences over possessions,” he said.

“This links to holidays, where they’re trying something very new and different.”

Domestic warning

Young also warned the domestic market that it would need to work hard if it was to win back this age group, adding: “They’re the age group least likely to holiday in the UK and if they do holiday in the UK, they’re most likely to cite cost [as the reason for doing so].

“It is a bit of a concern for the UK market that their needs aren’t being met in offering something new and different.”

He said only one country in the UK had begun to deal with the issue, adding: “Scotland promotes haggis and whisky and all the other experiences that are available.”

Young said that where the UK does remain popular for people considering a break, it is because it is considered less hassle, with 40% of respondents saying as much.

This was followed by 35% who said it was cheaper than overseas, while 32% were more aware of the UK offer than previously.

As far as foreign holidays are concerned, Young said 46% of those surveyed would most likely book their travel independently from their accommodation, up from 44% last year, while 19% would choose an all-inclusive package with a tour operator, down one percentage point from the previous year.

A further 17% said they would choose another type of package holiday in which travel and accommodation are included, up from 16% in 2014, while 5% said they would choose a cruise - the same proportion as in 2014.

The survey showed there is some good news for cruise however. Of the 5% seriously considering a cruise in 2015, more than half are first timers, while just over a quarter of the 25% likely to take a cruise in the next two years are aged 20 to 34, the largest group of all.