A new survey published on the eve of World Travel Market has revealed the UK’s travel spending trends based on age.
In its quarterly Holiday Confidence Index (HCI) on consumer holiday plans, First Rate Exchange Services reports a rise in confidence since the summer when, after the General Election, it dipped to its lowest point since the survey of over 5,000 UK adults started in 2013. Boosting the overall results, which show a two-point increase in the HCI score to 49 from 47 in July, are the super confident 25-34 year-olds.
For the most part unencumbered by the financial family commitments affecting older age groups and with a high disposable income, 25-34 year-olds are the UK consumers who lead the way when it comes to holidaying abroad.
According to the Winter 2015 Holiday Confidence Index report findings, around three-in-five (62%) of them intend to travel abroad in the coming year and almost as many (59%) will take two or more holidays overseas. Significantly more of them also expect to take longer holidays than they did in the past: 11% compared with 6% of 18-24 year-olds and 7% of people aged 55 and over.
25-34 year-olds are also more likely to splash the cash on holidays. Not only are they the age group most likely to increase the amount they spend on booking their holiday (13% against an overall average of 10%), they also plan to take more travel money (11% vs 7%) and spend more once they reach their destination (10% vs 7%) than they did on previous trips abroad. Holidays are sacrosanct for a high proportion of these young people: nearly three-in-five (58%) will cut spending in other areas to protect their trip abroad.
By contrast, the youngest age group surveyed – 18-24 year-olds – are far more likely to watch their wallets before spending on trips abroad. Only 42% rate overseas holidays as good value and fewer than average – 50% compared with 55% across the board – propose to travel abroad in the next year. Over one-in-five (21%) of those who do plan to travel will restrict themselves to a short break of 1-3 nights while just 8% say they can afford a two-week holiday. 11% will spend less on booking their next trip abroad, 7% will take less money and 9% will spend less while away.
At the other end of the age spectrum, two-thirds (66%) of holidaymakers aged 55 and over are planning to take two or more trips abroad. With fewer time constraints and a higher disposable income, they are also more likely to go on longer trips. Almost one-in-five (18%) will travel for more than 15 nights – the highest proportion for any age group.
Having children puts the brakes on holidays abroad. The survey found that the greater the number of children, the fewer holidays that people will take. 44% of parents with four or more children plan to holiday abroad in the next year, compared with 54% who have just one child. Furthermore, a third (32%) of those with four children say they will take fewer holidays compared with 7% who have one child. Adults with children also favour 1-3 night breaks and are less likely to go on holidays lasting over a fortnight.
35-44 year-olds, the group most likely to have a young family, are least likely to travel abroad. Three-in-10 have already decided against taking an overseas holiday in the next 12 months. 45-54 year-olds are slightly more positive: half are planning trips abroad but only 6% of them will increase the number they take.
Lingering doubts about the economy and personal finances may account for the general mood of caution picked up by the winter Holiday Confidence Index. Compared with three months ago, fewer people expect the economy to recover (29%, down 4%) and their finances to improve (23% from 24%). However, 25-34 year-olds are markedly more optimistic: a third (33%) expect the economy to recover and a third of those aged between 18 and 34 also believe their personal finances will improve. Similarly, 50% of 25-34s are confident of job security for the coming year, compared with an overall average of 40%.
On a positive note, the spectre of a potential interest rate rise is not proving the deterrent to travel plans that might have been expected. Only 16% of the survey respondents felt that a rate rise would negatively affect their holiday plans.
Alistair Rennie, First Rate Exchange Services head of Strategy & Innovation said: “Successive Holiday Confidence Index reports have shown that there is a hard core of people intent on travelling abroad for their holidays. Those numbers have remained pretty consistent, indicating that a significant percentage of people have an unshakable resolve to take an overseas holiday, whether or not interest rates rise.”
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