09 April 2009

Recession more likely to hit foreign activity holidays

Foreign activity holidays are likely to be more affected by the recession than other types of break, according to a new study.

It is likely that some travellers will economise by taking holidays in the UK rather than abroad this year and in 2010.

This will be more marked in the activity holiday sector, where there is a greater price differential between the overseas and domestic trips than in some other sectors of the overall holiday market, the research by market intelligence provider Key Note found.

"This said, once the economy recovers, the domestic sector is expected to continue to decline in relation to the overseas sector," the report said.

The market assessment report into activity holidays found that the impact of the recession will be more severe on the overseas sector in the short term.

But this situation will probably be reversed as the economy resumes its growth pattern.

A poll of 1,000 consumers for the report revealed that a third had been on one or more activity holiday either in the UK or abroad in the past five years.

Around 19% indicated that, although they had not yet taken an activity holiday either in the UK or abroad, they would consider doing so in the future.

The corresponding figure for those who had not yet taken such a holiday in the UK was 25%, and for those who had not yet taken a holiday abroad, but would consider doing so in the future, the proportion was 24%.

Walking - including trekking - emerged as the most popular activity with 14% of respondents indicating that they had taken a holiday of this kind in the UK, and seven per cent staying that they had taken such a holiday abroad.

The survey found that multi-activity holidays were also popular, with nine per cent saying that they had been on such a holiday in the UK, compared with six per cent who had taken this type of holiday abroad.

Overall, the conclusion of the analysis is that the appeal of overseas activity holidays is being broadened with respect to a number of demographic characteristics, including age, social grade and region of residence, Key Note said.