Rakuten Marketing and Centre for Retail Research data reveals Brexit is causing Brits to change holiday plans
London, UK, 24th May 2017: As the late May Bank Holiday approaches, research from Rakuten Marketing, the leading digital marketing company, and Centre for Retail Research today reveals nearly 1 in 4 (24%) consumers admit they are changing their intended travel plans this summer as a result of Brexit.
Over a third of people are choosing cheaper destinations (37%), a third are reducing the number of days spent on holiday (37%), and nearly a fifth (18%) are holidaying at home in the UK instead of abroad.
The types of holidays where cheaper destinations are most likely to be chosen are cruises (46%), camping (42%) and city breaks (40%). For beach breaks, 45% of people are choosing to go away for fewer days.
Mark Haviland, EVP Global Development and MD of Rakuten Marketing Europe says: “Although the appetite for travel is still high, people are aware that foreign holidays are more expensive this summer because of the fall in the pound’s value. Overlooked affordable destinations are likely to become new favourites with Brits travelling outside the UK and within Britain and regional economies will get a boost from staycations.”
Brexit is most likely to affect holiday planning, rather than causing people to cancel already booked breaks, with nearly a third (30%) of people saying Brexit is affecting their travel decisions in some way. A fifth of Brits say there will be no difference in their travel plans this year and 18% say they’ll take more holidays in 2017 than in 2016.
Haviland continues: “This will be the summer of good value so there’s a clear opportunity for brands if they market to these tourists effectively. The must focus on selling memories and experiences, rather than just hotel rooms and use targeted advertising, for example based on consumers’ mobile location or previous product purchases to stand out from the competition. Brands would also be wise to consider partnerships with cashback and voucher publishers. These websites have a following of savvy travellers and can open up huge new customer bases.”
Professor Joshua Bamfield from Centre for Retail Research adds: “People are now taking on average 3.6 holidays per year. However sterling’s currency depreciation may force holidaymakers expecting to go abroad to change their plans this summer and the uncertainty about the economy or the household’s future living standards may limit holidaymaking amongst more prudent families.”
Please see here for the full report from Centre for Retail Research and Rakuten Marketing on consumers’ attitudes to Brexit and spending.
Notes to editors: The Centre for Retail Research conducted interviews with a representative sample of 1,000 respondents aged 18 years and over in February 2017. They represented as far as possible a cross section of the UK population, consisting of: 515 females and 485 males; a representative demographic sample by six different age groups; and, to prevent regional bias, 46.2% from the north of the UK and 53.6% from the south. The Referendum indicated sharp differences between regions in their attitude to Brexit, which explains the need to obtain a north:south regional spread of opinions and responses. The percentages in this press release have been rounded up to the nearest percent.
About Rakuten Marketing
Rakuten Marketing is the global leader in digital marketing solutions that empower marketers to realise the full potential of their campaigns across display, affiliate and social channels. Our clients are looking to work with a transparent partner who can help them increase the efficiency and performance of their campaigns. These campaigns are supported by a robust platform that includes our own attribution and retargeting technology, unique data and advanced user identification capabilities.
Integrated multichannel solutions, along with our unique data insights and unparalleled client focus, equip marketers to deliver ad experiences that engage and influence across a global network.
Rakuten Marketing is backed by Rakuten, Inc. one of the world’s leading Internet service companies. With UK offices in London and Brighton, the company is headquartered in New York City, with additional offices in Australia, Brazil, Japan and throughout the United States. Further information can be found on Twitter or at https://rakutenadvertising.com/en-uk.
About The Centre for Retail Research
The Centre for Retail Research based in Nottingham England, carries out independent research in Europe and North America on customer spending trends, the changing retail marketplace, online retailing and the impact of technology on retail development. The Centre’s publication, Retail Futures 2018, examining the changing structure of UK retail, led to its Director giving evidence to a UK Parliamentary Select Committee and the Competition Committee of the EU. The Centre’s research and views are quoted widely on radio and TV and by major newspapers. Joshua Bamfield is a Member of the Royal Economics Society and a Fellow of the Royal Statistical Society. The Centre was established in 1997.
Beth Sissons for Hotwire
020 7608 4670