Significant volume growth is unlikely in the key UK outbound leisure travel segment until there is a sustained revival in consumer confidence and growth in household income. Even then growth rates are likely to be modest compared with the pre-recessionary boom years. In the domestic market, outside of the dominant self-drive segment, there is an underlying shift towards domestic rail, which has become more competitive on cost and time with air travel, as well as offering businesses a greener and more CSR-friendly alternative.
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TABLE OF CONTENT
Slow growth pattern likely to continue
Figure 1: Volume forecast of total passengers uplifted at UK airports, 2008-18
Spain and France remain favourite destinations
Figure 2: Most popular overseas travel destinations for UK residents, 2012
Domestic air losing out to rail
Figure 3: Passenger traffic, by UK airport, 2012
Short-term pressure easing but long-term hikes likely
Figure 4: Kerosene-type jet fuel monthly average spot price and US$:£ monthly average spot exchange rate, January 2007-March 2013
Issues in the Market
How can airlines respond in an era of high costs?
Is the UK falling out of love with budget airlines?
How can airlines best target the increasingly important over-55 population?
What is the best response to green ‘flying guilt’?
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