market outlook Travel’s recovery exceeded all expectations


may have an impact on their holiday decisions, rising to 80% of those ‘very likely’ to have an overseas holiday and 88% among those ‘quite likely’. Half (49%) cited the cost of holidays as a factor that could influence their decision. Unsurprisingly, the survey found ways


to control or minimise cost increases increasingly popular. Almost three out of five prospective holidaymakers (57%) said they were likely to book all-inclusive accommodation, up five percentage points year on year and the highest yet recorded in the survey, fully 17 points up on 2015. Three- quarters (77%) of those with children said they would opt for all-inclusive. Three out of five UK adults and 77%


of those ‘very likely’ to travel said they aimed to travel outside peak season, including two-thirds (64%) of those with children. Two-thirds (68%) of those intending to take an overseas holiday said they would seek cheaper flights or travel options, and more than half cheaper accommodation. Just under half of those planning a holiday said they would reduce the number of nights away – in the case of those ‘very likely’


The Deloitte view


The year 2023 unfolded as another challenging chapter for the travel sector, grappling with the prolonged aftermath of the pandemic, geopolitical unrest and economic uncertainties. Despite these hurdles, the industry demonstrated its resilience, highlighting an ability to adapt to societal changes and emerging trends. These changes have included a workforce with varying needs and expectations, a decrease in business travel, an increasing focus on sustainability, and shifting customer demands. In the next year,


industry executives will need to consider: Q Strategic supply chain management: Understanding the domino effect of disruptions and implementing measures to address them will be crucial for


ensuring uninterrupted operations. Q Regulatory preparedness: Travel companies need to stay abreast of changes


such as the EU Corporate Sustainability Reporting Disclosure, UK Corporate Governance Reforms and the new Failure to Prevent Fraud offence. Being prepared for regulatory shifts is essential for maintaining


compliance and building resilience. Q Adaptable travel products: Flexibility in product offerings, combined with an understanding of evolving consumer needs, will be essential for sustaining


profitability in the face of uncertainty. Q Climate transition readiness: The global focus on climate change presents risks and opportunities. As the finance industry channels capital towards low-carbon technologies, travel companies must be at the forefront of developing ground-breaking technologies and new operating models. Embracing the climate transition is not only imperative but a strategic move to de-risk the industry.


Q Breaking down organisational siloes: Resilience requires a collaborative effort across departments, mobilising experts in risk management, finance, operations, technology, ESG, business continuity, supply chain and product development. Breaking down organisational siloes will enhance oversight of risks and facilitate mitigation strategies. Prioritising enhanced risk management


and resilience building can instil confidence in the industry’s ability to adapt and thrive in times of uncertainty. By addressing supply chain challenges, staying ahead of regulatory shifts, adapting products to changing consumer demands, embracing the climate transition and fostering organisational collaboration, executives can fortify their


businesses against future uncertainties. Q James Meadowcroft, partner, Risk Advisory, and Bethany Hawkings, senior manager, Risk Advisory


to travel this proportion was up 14 percentage points year on year to 44%. Half of all UK adults (52%) said they


would take fewer holidays in 2024 in response to increased costs. This rose to roughly two-thirds among those with children (64%) and those aged 35-44 (68%). Alongside the strength of demand and


cost concerns, the survey’s most striking findings relate to climate change and sustainability. This may not be surprising given the growing prevalence of heatwaves, wildfires, floods and other climate-related events, often in travel destinations. More than two in five UK adults (43%)


said they were concerned enough about the warming climate to change their travel behaviour, up eight percentage points year on year. The proportion was lower at 37% among those ‘very likely’ to take a holiday overseas but up 20 percentage points on a year earlier. Almost two out of five holidaymakers


(38%) said they were prepared to pay more to travel with a company which minimises its carbon emissions, up 10 percentage points year on year, with a strong bias in agreement among those aged under 45.


16 Travel Weekly Insight Report 2024


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