Outbound
Package holidaymakers hit record level FIGURE 68:
Major travel groups reported strong growth in all sectors in 2024
RECORD numbers of UK holidaymakers booked overseas package holidays in 2024 and there was every prospect 2025 could be another record year, despite a fall in UK business confidence which could yet feed through to consumers. The strong demand saw Atol
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The Deloitte view
Despite the persistent inflationary environment, outbound travel outperformed other discretionary spending categories in 2024 as consumers ringfenced travel budgets. Total net spending on short holidays was
up compared with 2023, according to the Deloitte Consumer Tracker survey for Q4 2024, while net spending on longer holidays remained flat. This suggests consumers are adjusting their spending habits, opting for shorter, cost-conscious trips. Looking to 2025, several critical areas
will shape the future of outbound travel: Q Diverse players, evolving dynamics:
The outbound market is diverse, with large-scale integrated operators, niche players and online travel agencies (OTAs) vying for market share. Large players must leverage their scale to offer competitive pricing and comprehensive packages, while niche operators specialising in escorted tours, luxury travel or specific regions can differentiate through curated experiences and personalised service. OTAs with powerful tech platforms will continue to influence booking behaviour
and shape consumer expectations. Q Experiential journeys and emerging
destinations: Travellers are increasingly seeking experience-driven trips. Destinations like southeast Asia and South America are rising in popularity, but we also see growing interest in central Asia and eastern Europe. Outbound operators which tap into niche experiences – culinary tourism, wellness retreats, wildlife
encounters – will be well-positioned. Q Currency fluctuations and value-seeking: The strength of the pound will play a crucial role in shaping destination choices. Outbound operators must manage currency fluctuations, offer competitive prices and highlight value-added experiences
to attract cost-conscious travellers. Q Navigating regulatory change: The UK outbound market still awaits the outcome of Atol reform. Understanding and
adapting to the reforms will be crucial. Q Adopting generative AI: AI’s transformative potential for consumers and businesses can’t be overstated. Businesses must make strategic decisions about AI investment
to ensure they remain competitive. Q Technology advances: AI, mobile apps, OTAs, travel booking platforms and aggregators are intensifying competition.
Outbound operators must leverage technology advances to enhance customer
experience and streamline operations. Q Addressing climate change: The increasing frequency and intensity of climate-related events was reflected in Deloitte’s Future of Consumer research which found consumers who experienced climate events first-hand are more likely to factor environmental considerations into their travel plans. Businesses that align with shifting consumer
preferences will be better positioned. Q Mergers and acquisitions: The market has yet to return to pre-pandemic peak levels of M&A and underperformed expectations in 2024. However, increased travel sector M&A activity is anticipated in 2025. Consolidation among operators, agencies, airlines and hospitality providers may create opportunities for businesses to expand their market presence and streamline operations. Given the evolving landscape, success
will depend on players’ adaptability, ability to innovate and understanding
of changing consumer preferences. Q Danielle Rawson, director, CFO Advisory, and Tim Robinson, director, Audit and Assurance
EU N America
Non-EU Europe Rest of world Source: ONS UK OUTBOUND
HOLIDAYS BY REGION 2019
13% 5% 6% 58.7m 76%
outbound holidays
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48 Travel Weekly Insight Report 2025
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