STAYCATIONS

RESEARCH: 56 DEGREE INSIGHT

STAYCATION TREND ‘TO CONTINUE INTO 2021’

NEW RESEARCH SUGGESTS THAT THE STAYCATION TREND THAT HAS EMERGED THIS YEAR IS SET TOCARRY ON INTO 2021 – BRINGING WITH IT MORE OPPORTUNITIES FOR LOCAL RETAILERS.

Brand new research undertaken at the end of August by Edinburgh-based 56 Degree Insight has revealed that 60% of those interviewed have already ruled out a foreign holiday in 2021, presenting a wealth of new opportunities for local retailers as consumers remain committed to the staycation trend.

The survey is purely a Scottish one but has implications for the whole of the UK. Launched in May and canvassing more than 2,000 people, the Scottish Tourism Index was carried out in four separate waves in an attempt to get a handle on how people feel about travel generally and to monitor the tourism and leisure desires and concerns of the Scottish population.

In this fourth and final wave, undertaken in the last week of August, the Index was able to examine the nature of the holidays taken by Scots in Scotland in July and August – as well as making more robust predictions about the rest of this year.

Some key findings have emerged:

1 PEOPLE ARE STILL FEELING A SENSE OF NERVOUSNESS ABOUT TRAVEL GENERALLY:

Nervousness around travel is still considerable with destinations outside Scotland ruled out for the majority. Although three-quarters are willing to consider Scotland for holidays, a quarter will not travel at all at the moment.

The financial impacts of Covid-19 are showing signs of increasing, with 35% of Scots saying they have been impacted ‘significantly’. This will undoubtedly impact on travel and tourism with less money around to spend on holidays later this year and into 2021. It will also likely impact behaviours, types of holiday and destination choices.

The likely changing face of tourism will be exacerbated in 2021 by a clear demonstration that most Scots are unlikely to return to foreign holiday-taking by air next year (60% already ruling it out) – especially older Scots who will undoubtedly be the last group to regain confidence to travel by air following the impacts of Covid-19.

2 THE SCALE OF THE STAYCATION MARKET IS SIGNIFICANT:

The proportion of Scots either considering or having taken a 2020 Scottish holiday by late August remains remarkably consistent with July’s findings (53%), however not surprisingly, there has been movement down the holiday purchase funnel. By late August, 13% of Scots had already taken a holiday in Scotland since lockdown, whilst a further 10% had booked and 4% were at the ‘serious planning’ stage. Just over a quarter were only thinking about a Scottish holiday (27%).

Just under four in 10 have no intention of a home holiday this year (38%) however as many as 9% claim to have been undecided but have now rejected a staycation this year. If all the holidays being considered are eventually taken, around 2.4 million holidays will be taken by Scots in Scotland in 2020.

Take-up is highest among families – just ahead of prenesters. Empty nesters, traditionally the ‘mainstay’ of domestic tourism, are least likely to be considering a Scottish staycation this year – a reflection of the greater fears this group has around Covid. Therefore, not only is the industry dealing with a much more Scottishbased mix of visitors in 2020, it is also having to adapt to different needs among a younger and more familyoriented audience.

Over half of these potential tourists would not have considered a home holiday if it were not for coronavirus (51%) – although three in five were still at the ‘consideration stage’ in late August – work is clearly still required to convert them into real bookings.

Of the 47% of Scots who will not be taking a holiday or break in Scotland this year, many cited fears around the fact that the virus was still at large and safety concerns as a key deterrent for a home holiday – this was the key barrier for half of them.

Hygiene and cleanliness top the list amongst potential visitors as the most important factors to be adequately addressed on a Scottish staycation this year – both in the accommodation they use and more generally.

3 EATING AND DRINKING ON HOLIDAY:

There has been a reticence towards eating out on holiday since May, with Scots expressing a greater desire to buy food and cook for themselves while on holiday.

Almost three in five ate out while on holiday – probably reflecting an increased trust in the safety mitigations as well as the ‘Eat Out to Help Out’ scheme.

4 THE PROSPECTS FOR 2021

Scotland remains the most likely destination for most Scots’ holidays in 2021 – around half are either definite or very likely they will take a home holiday and a further 30% are fairly likely they will do so – four in five Scots overall.

Other parts of the UK are also likely to benefit from more Scots holidays next year with around two-thirds likely to go there. Europe is a probability for just over two in five (44%) and 22% are likely to consider going further afield.

This all does suggest that the impacts of Covid in encouraging more Scots to consider a home holiday in 2020 may continue into 2021. And indeed, when Scots were asked how their likelihood to take a home holiday in 2021 compared with their thoughts pre-coronavirus, the response is encouraging. A third of Scots are now more likely to consider Scotland for holidays than they were pre-Covid. With 17% now less likely to do so, this represents a swing to staycations (in 2021) of +16%. The swing is greatest amongst families – and also among those who would not have considered Scotland this year if it was not for Covid-19.