Allegations launched by the European Commission
into Eurotunnel levying excessively high track access charges could also see
passenger ticket prices fall – Eurostar currently pays Eurotunnel as much as
£19 per passenger. The increased competition offered by Deutsche Bahn’s entry
into the market could also serve to reduce cross-Channel ticket prices as both
rail operators will be running direct services to Lille and Brussels.
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TABLE OF CONTENT
Introduction
Definition
Abbreviations
Executive Summary
The market
Figure 1: Volume
forecast for UK short-haul holiday market, 2007-17
Market volume is
expected to remain flat before returning to growth in 2014
Value growth is set to
outpace volume growth as confidence improves
Figure 2: Value forecast
for UK short-haul holiday market, 2007-17
Market drivers
Pound regains some
ground after eight-month slide
Figure 3: Foreign
exchange rate index, GBP against key short-haul destination currencies, January
2012-June 2013
High jet fuel prices
weigh on consumer sentiment towards flying
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Figure 4: Jet fuel
prices, GBP per gallon, April 2008-January 2013
The competitive
landscape for Channel crossings set to intensify
Market share and
segmentation
Independent segment
continues to cede market share
Figure 5: Independent vs.
non-independent short-haul holidays, by volume, 2008-12
Tunnel segment grew by
12.8% in 2012 to take a 10% market share
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