The Changing Face of

Distribution Channels
KTB UK

Where we are

Market Background UK
ECONOMIC UPDATE
GDP grew by 2.7% in 2014 and has continued
to grow at 2.6% in 2015 (exceeding earlier
forecasts)

Growth for 2016 also recently upgraded to

2.8% (versus 2.5% initially estimated)
Total consumer spending is expected to

continue growing by around 2% per annum

until 2030 (PWC)

Market Background UK
TRAVEL INDUSTRY OUTLOOK
In terms of spend the United Kingdom is the fifth largest
outbound market (UNWTO Tourism Highlights 2014 Edition)
Holiday bookings have risen by 10.3% in 2015

Over half (53%) the UK population took at least one holiday

abroad in 2014
Growth in the number of holidays driven by more affluent

consumers (ABTA)

Who Do The British People Holiday With ?

PARTNER ONLY

52%

EXTENDED FAMILY

IMMEDIATE FAMILY

38%

ADULT ONLY GROUP

OF FRIENDS

20%
24%
GROUP OF FRIENDS
INCLUDING KIDS

5%

ALONE

15%

Top 10 Holiday Types

Package holidays remain important

The Changing Face of

Distribution Channels

How are people booking their holidays?

Online Consumer Trends

86% of overseas travel transactions in the UK are
now digitally influenced (Deloitte)
80% of travel products in the UK are researched or
purchased online, the highest figures for any
country in the world (Google)
96% of UK consumers book their air travel online
(Kantar Media Compete)
30% of UK travellers booked their most recent
hotel stay directly from a hotel brand website,
32% booked from an online travel agency (ABTA)

What does online mean?

Kenya bucks the trend!

Consumer Trends Online vs High Street

Kenya bookings buck the online trend
Multi centre safari and beach itineraries are
complex
Consumers need to speak to a specialist
The trade are well aware of this this is why
they love selling Kenya!

Target your consumers online then take

people to the booking source

Main influencers for Kenya

The internet

45%

Personal experience

15%

Recommendations

Travel agencies
Guidebooks

43%

6%
3%

32%
28%
24%

1%

Newspaper/magazines

24%
19%

Travel magazines
Radio

48%

9%

Tour operator
TV Travel programmes

49%

13%

Brochures

19%

3%

77%

Main

All

Main channels of research for Kenya

Which channels did you use to research your holiday to Kenya?

Booking Kenya
When booking a Kenya holiday
respondents were significantly more
likely to book direct with a tour
operator or a travel agent than online
When booking their Kenya holiday
82% booked through a tour operator
or travel agent vs 30% when booking
another long haul destination
(Burns & Co KTB Research)

Which tour operators?

192 tour operators sell Kenya
Volume operators sell 3 / 4 * hotels
Luxury operators 5* holidays

Specialist tour operators who focus on specific

niches

In general growth in number of holidays

driven by affluent consumers

Which tour operators?

Previously charters and large tour
operators committing seats on
charters
To survive tour operators have
focussed their efforts more on
tailor-made travel

How can we all use online?

The buying process

Discovery

Purchase

Experience

Advocacy

What should we all be doing?

When are UK consumers online?

Post times of a leading travel supplier in 2015

No one likes cold calls or spam

So avoid promotional posts!

Think Mobile!

UK Outlook

Future

CURRENT TRAVEL TRENDS IN THE UK

Current & evolving consumer travel marketing trends will help partners to determine the right
marketing channels and messaging
THE AGE OF PERSONALISATION

INSTAGRAM: THE INFLUENCER BUMP

THE RISE OF UBIQUITOUS BOOKING

EMERGENCE OF BLEISURE

Customisation is key, from cycling, culinary or photography

tours. Customers, especially millennials, are seeking deeper
connections & personal experiences

The new breed of travel sharer is more viral than bloggers &
the twitterati: travel & beyond, to family, food, sports, fashion
& design

The ability to book is becoming even more ubiquitous, central,

flexible & mobile. Long- haul destinations need to identify with this
booking trend which demands more captivating content to help
convert last minute bookings

The merging of business & leisure has created a new breed of

sky warriors whose expectations & behaviours have shifted
towards a culture that combines productivity, opportunity &
new experiences.

Hills Balfour

FUTURE TRAVEL TRENDS IN THE UK

Across the board, people want to take more international trips and Australia, Italy and the US
continue to be the destinations topping travellers wish lists. TripAdvisor chief marketing officer
Barbara Messing
AGEING DEMOGRAPHIC

GROWTH IN TECHNOLOGY

Increase in 60+ retired travellers with disposable incomes

(GENERATION S)

Research by World Travel Market & Euromonitor International

identifies more than a third of all travel bookings made online
will be done via a mobile device by 2018, revolutionising the
travel industry from destination education through to booking

SOCIAL MEDIA REWARDS

Companies (such as hotel chains) will start to offer reward

schemes for people who share images and reviews of their
hotels rooms on social media

LAST-MINUTE LIVING

Continuation of last-minute living. AOT partners & industry need

to be aware of the late-booking trend & to price fluidly to take
advantage of peaks & troughs in occupancy

Hills Balfour

Asante sana
We are here to help you

Where we were

Where we were
In 1990 91% of all holidays booked through a travel agent or tour
operator
In 2004 50% of all holidays booked through a travel agent or tour
operator
Consumers needed human contact
1999 Expedia was launched