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
Introduction
Definition
Abbreviations
Executive Summary
The market
Slow growth pattern
likely to continue
Figure 1: Volume
forecast of total passengers uplifted at UK airports, 2008-18
Budget shift
Market factors
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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