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More Brits plan breaks but ‘sector faces challenges’


THE LATEST HOLIDAY CONFIDENCE INDEX PAINTS A MIXED PICTURE FOR THE INDUSTRY. BY IAN TAYLOR


UK consumers remain cautious about spending on holidays despite average living standards rising this year for the first time since 2008.


That is the conclusion of the latest


Holiday Confidence Index from First Rate Exchange Services, which predicts “a challenging time for the travel industry” in the next year. The Winter 2015 Index, published this week, is based on a survey of more than 5,300 consumers. It reports “a prevailing


78 travelweekly.co.uk 29 October 2015


mood of caution both in taking holidays abroad and the UK economic climate”, with one in five respondents (19%) undecided on whether to book an overseas holiday in the next year – a rise of three percentage points on the last survey in May. However, the index also gives


grounds for optimism. It shows an improvement in confidence since the previous survey, which suggested a two-year low in consumers’ holiday expectations,


with a two-point improvement in the intention to travel abroad and an increase in the frequency of overseas trips planned by those who will take a holiday. There is also a four-point


increase on a year ago to 46% in the proportion of consumers who have already booked a trip between now and next September – with half of these (52%) due to travel before the end of this year. First Rate suggests families


are “feeling the pinch”, but says demand among 25 to 34-year-olds – “the age group most likely to be in full employment and without the commitments of a young family” – remains strong.


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