Market and Consumer Trends Sharon Orrell 8 th March 2012

Holiday trip volumes are below 2009 peak, but remain well above pre-recession levels for the third successive year Trips (m) 2011 change +6% Holiday VFR Business +10% +15% Source: GB Tourism Survey

Trends vary by region…. Source: GB Tourism Survey

Trends also vary by demographics and trip characteristics… Source: GB Tourism Survey

…and online booking continues to become ever more important Jan – Nov 2011 Holiday trips booked online + 19% Source: GB Tourism Survey

Attractions performance was positive through most of Source: England Attractions Monitor Quarter 1 +7% Quarter 2 +4% Quarter 3 +2% Source: VE Quarterly Attractions Monitor Quarter 4 +12%

Some recovery in inbound trip volumes in 2011, with holiday travel at an all-time high Source: International Passenger Survey

In the accommodation sector, confidence levels vary by type of business Source: VisitEngland Business Confidence Monitor – January 2012

Among attractions, larger operators are more optimistic than others Source: VisitEngland Attractions Monitor

The Consumer

Widespread concern about the economic environment, though levels seem to have peaked Source: VisitEngland Staycation Research

Three quarters have changed spending patterns as a result of the downturn – and 1 in 4 are “seriously affected.” Source: VisitEngland Staycation Research

What do we know about “staycationers”? 15% “Switchers” Replaced a foreign holiday with one at home High proportion of families More worried about job security and credit crunch Main motivations were financial situation and exchange rate In total, 22% of the population 9% “Extras” Took more domestic breaks – but not as substitute for others – also more foreign hols Younger profile Less affected by credit crunch than switchers (but have become more cost conscious over time) Main motivations were exploring / going somewhere new “I went on so many holidays last year... here as well as abroad..it was great” “I had to go on holiday in this country because money was well short”

And what was their experience? “Switchers” In the main, positive…. “Extras” It was far better than expected...we went to Cornwall where I used to go when I was a kid..but it’s better than I remember and little ones wanted to be shown what we used to do...they really loved it We enjoyed it as a family much more than we thought we would..we did things together...went on trips to light railways, country houses, the grounds It was OK…But to be honest if I had more money I would go abroad this year...I don’t so it will have to be England...I don’t know it’s not quite like going away I really enjoyed the trip last year in England...really opened eyes to possibilities you don’t really think of...great country really and seen so little of it We had a wedding in Cumbria...so we decided to extend it to 3 days in the Lakes...wow! This year has got me thinking….

Expectation of more domestic trips – even in longer term Source: VisitEngland Staycation Research Sept 2011

Finances play a role in this, but NOT the only reason Source: VisitEngland Staycation Research 2011

Market and Consumer Trends Sharon Orrell 8 th March 2012