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All-Inclusive Holidays Enjoy Renewed Popularity Following the Recession

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According to a new market assessment, All-Inclusive Holidays, published by market intelligence provider Key Note, the all-inclusive holiday market has undergone a resurgence in recent years, with many holidaymakers preferring the convenience and budgetary benefits that package holidays offer, particular since the economic downturn. This has reversed an almost decade-long trend, during which a significant decline was observed in sales of package holidays, brought about by the rising popularity of the Internet and budget airlines, which served to erode travel agents and tour operators' share of the market. Flights could easily be booked online at the last minute and at affordable prices, while adding accommodation separately was simply a few clicks away. However, following the recession, the volume of all-inclusive holidays is estimated by Key Note to have grown by 48.5% since 2007.


Travel agents and tour operators have struggled to adapt to the changes in the market in recent years and, with the high street in decline, a number of major mergers have been undertaken in recent years, while the current woes at Thomas Cook are well documented. A number of smaller agents and operators have ceased trading altogether. The added security that an ATOL protected carrier provides has been another factor driving growth in the all-inclusive holidays' market. Many independently packaged holidays are not currently covered by ATOL and this has forced the Government to act. Plans to modify rules governing ATOL protection are ongoing and should significantly increase the number of holidays that are protected in the future.


The continued economic uncertainty is set to continue to boost the all-inclusive holidays' market in 2012, and a number of travel agents have restructured their business accordingly. For example, the TUI-brand First Choice will offer only all-inclusive package holidays from 2012 onwards. Rising Air Passenger Duty (APD) and the introduction of aviation to the EU's Emissions Trading Scheme (ETS) are likely to push up the costs involved in travel, thus increasing the appeal of the all-inclusive holiday. Key Note forecasts that 2012 will be another strong year for the market, which is expected to grow by 28.3%, before slowing to 9% between 2013 and 2016.



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