Thomas cook 2017 by KSD S.A

CONTENTS Foreword

Who are we?

Where are we going?

How do we get there?

Let’s talk about money

We are family

Pester power

Eurovision

Back to the future

The majority of statistics in the Thomas Cook Holiday Report, unless stated otherwise, are based on UK tour operator and flight-only bookings up until 2nd May 2017 and a survey of 2,635 UK customers in April and May 2017. The Pester power chapter is based on a survey of 5 to 13 year olds in partnership with First News in May 2017. The Eurovision chapter is based on customer surveys across Thomas Cook’s key markets in 2016 and 2017.

£100 pledge: Debit card costs calculated on a non-sterling fee of 2.75% and a DCC rate of 5% Debit card cost for ATM withdrawal also based on an additional 1% ATM fee Debit card cost and fees via Money Saving Expert (June 2016) using Tesco debit card Foreign exchange and pre-paid currency card costs calculated using the Thomas Cook Exchange Rate for € on 01/06/17 = 1.1183 (plus ATM at £1.75) Luggage costs based on a short haul flight-only booking (zone 1) with Thomas Cook Airlines Waterpark costs based on two adults and two children at Siam Park, Tenerife – booking via a Thomas Cook store in advance and at the entrance on the day All conversions and debit card exchange rates from € to £ or £ to € calculated from Interbank rate via Revolut on 01/06/17 = 1.1490

FOREWORD

Welcome to Thomas Cook’s first Holiday Report. As one of the world’s leading holiday companies, with 19 million customers from 16 countries and 176 years’ experience, Thomas Cook has unique insight into how, where and why people holiday. So it makes sense for us to produce a group-wide report looking into the holiday habits of our sun-seeking customers. It is perhaps surprising we haven’t done it before now. The report is based on a combination of our own booking data and a specially-commissioned customer survey. Replicating this approach across Germany, UK and Sweden, has provided us with valuable insight into the behaviour of our customers in each of these, our core markets. It’s also enabled us to compare between the different nationalities: what holiday trends divide us and what unites us (there’s more than you might think!). There’s plenty in this first report that you’d expect from a holiday company of our size: the hot destinations for Summer 17, how – and when – customers are booking their holidays, and the way that differs between the age groups. But we’ve also gone into a few other areas in a bit more detail.

In a year when we’ve seen a big swing in the value of the pound, we look at Brits’ attitude to their holiday money and suggest four simple ways families could save £100 or more this summer. We’ve also gone out and canvassed the views of Britain’s children – what makes a good holiday for them and what they could do without. With one in four Brits admitting they think about holidays [every day], it’s clear that British customers’ appetite to travel remains strong despite the uncertain environment. This report lifts the lid on what influences their decision over where to go and what to do in those most important weeks of their year. We hope you enjoy it.

Peter Fankhauser CEO Thomas Cook Group

Millenials WHO ARE WE?Independents CH A R AC TER S COU NT O N H O LI DAY – C A N YOU S POT YOU R S?

Millenials

CROSS checking what our customers told us with extensive research in the field produced a few familiar faces. You may recognise some of these (stereo) types.

MILLENNIALS

Independen

INDEPENDENTS

Holidays are the currency of long-lasting memories - perfect for a generation that values experiences over possessions

They used to backpack around the world. They still want to travel before they have kids, but they’re not going to rough it any more

Age: 18-24

Age: 25-34

Researches: by smartphone (68%) or tablet (67%)

Researches: by smartphone (63%) or tablet (48%)

Books: online or in store – 64% have used travel agents before – they’re usually travelling in a group and want to pay individually

Books: late and online – 22% start planning and researching three weeks or less before departure. Few family ties mean they can travel at short notice – often a flight-only deal which they will pair up with some accommodation they have seen on Instagram or in a fashion magazine

Spends: cash – 91% take all or most of the money they need as foreign currency. 73% save regularly for their holiday Loves: the beach – 53% in this age group said the beach was a key factor. They’re more likely to be swayed by fashion than older groups - but not much. 10% said somewhere fashionable or new was important to them Shares on: Snapchat, Instagram, Facebook, Twitter; anything with a handle or a hashtag Dream destinations: Ibiza, Ayia Napa Ways to save: order your spirits in advance from Airshoppen to lighten the holiday drinks budget. Buy duty free Bombay Sapphire for £13.50 (around 50% cheaper than duty free) for export strength G&Ts.

Spends: on a mix of credit cards and foreign currency left over from their last trip. 28% in this age group use their credit / debit card on holiday Loves: city breaks, long-haul travel and boutique hotels like Casa Cook that has been designed with the perfect Instagram shot in mind. Having local culture nearby is a big plus – 23% of those without kids say that excursions from the resort such as visits to historic sites, are one of the most important factors when booking Shares on: Instagram, Twitter, Pinterest where they rigorously ensure their feed is more stylish and glam than their followers’ Dream destinations: San Francisco, Cape Town, Rhodes and Croatia Ways to save: be flexible with your flight times to get the best deal available

STRIVERS

THRIVERS

Hard-working families work harder still to get a good deal for their summer holiday

They have plenty of experience and now the kids are getting older they want maximum holiday thrills

Age: 25-44

Age: 45-54

Researches: by smartphone (56%), tablet (52%) or desktop / laptop (52%)

Researches: by desktop/laptop (55%) either after the school run or while noone is looking at work

Books: in store (59%) or laptop / desktop (42%) and via direct debit – 21% use payment plans so they can spread the cost Spends: foreign exchange cash. This group are more likely to use price comparison websites to find the best deal they can on travel money than anyone else (54%). But 50% worry about the fees and charges for using credit / debit cards abroad

Thrivers

Books: 44% by desktop / laptop, possibly while relaxing on the sofa in the evening. Online bookings peak during wine o’clock from 8-10pm (see p. 8-9; Timing is everything) Spends: from their own savings – 81% of those with kids save for their holiday spending money in advance so they don’t have any debts after their trip

Boom Tim

Loves: all-inclusives (for value) and hotel-based activities. 53% cite having features in the hotel or resort, such as kids club and activities, as a key booking factor - the highest score among all the customer types. Having local culture nearby is not so important (only 6%)

Loves: all-inclusives (for variety) in big resorts with loads going on and theme parks on the doorstep to keep the whole family entertained. Those in the South East of the country opt for all-inclusive (66%) over self-catering (15%) more than any other region.

Shares on: Mumsnet, while checking TripAdvisor for advice

Shares on: Facebook, while updating their family blog and uploading reviews to TripAdvisor

Strivers

Dream destinations: Turkey’s great value 5* hotels with facilities aplenty Ways to save: a currency card would help allay those fears over credit card fees and is a great way to keep track of spending (see p.10-11; Let’s talk about money)

Dream destinations: Florida, Mexico and Cuba Ways to save: buy theme park tickets in advance (see p.10-11; Let’s talk about money)

Thrivers

BOOM TIMERS They’re either SKIing - Spending the Kids’ Inheritance - or spoiling them with a family holiday to remember Age: 55+ Researches: online (55% by desktop / laptop) or in store Books: online or with a travel agent (69% book in store; the most likely of all the age groups to use the high street) Spends: more wisely than any other group. 60% keep track of currency rates throughout the year and change money when the rates are good Loves: convenience. 52% say flight departure times are important to them while they are the least likely of all the groups to book for the cheapest price (11%) They also like to treat the family – they might pick up the bill for a holiday with the grandkids – or treat themselves to a cruise or a grand tour. Shares on: FaceTime, the phone and by postcard, if they can find anywhere to buy stamps Dream destinations: France, Italy, unspoiled Greek Islands Ways to save: book early to ensure you get the flight times you prefer and the family room if you’re bringing the whole clan

WHERE ARE WE GOING? GR EECE I S TH E WO R D FO R S U M M ER 2017 BUT TU R K E Y STI LL TA LKS A G OO D GA M E EAST vs West and near vs far: perhaps these are the simplest ways to view which direction customers are heading on holiday this year. But summer 2017 is far from simple and many factors play on holidaymakers’ minds when deciding where to go. The Pound is weak and likely to stay volatile for the next 12 months at least. And security fears continue to affect certain destinations: one of Egypt’s main resorts is still off the map and Tunisia entirely so. Good value hotels mean Turkey has seen a bounceback in popularity but the demand is still lower than recent years and bookings come in for old favourites such as Marmaris later than they do for Greece or Spain. So west is more popular for short-haul at least – but this brings issues of its own. The holiday market is very competitive in Spain with lots of flights available, so demand for accommodation is high and as a result hotel rooms are not always cheap. Nevertheless, Spain’s popularity endures: combining the islands and mainland, it is still the number one destination for Thomas Cook customers. This also leaves Greece having its moment in the sun. Its smaller islands are finding favour with families especially: package holidays to Thassos are up 53% year-on-year, Santorini by 40% and Lefkas by 19%.

Neighbouring Cyprus is also faring well – it is Thomas Cook’s fifth best seller overall this summer.

THE LONG AND THE SHORT The long-haul market continues to grow in popularity. Despite some fearing a ‘Trump slump’, bookings to the US are good and even compared to a particularly strong 2016, it is the fourth most popular destination with bookings up 10% for summer 17. Flight-only bookings to Boston have increased 116% year-on-year, while La La Land (LA) has seen a 33% rise. Mexico is also up 18% year-on-year, helped by the weakness of the Peso – it is one of the few currencies to be down against the Pound. Cape Town tells a similar story and Thomas Cook’s new route from London Gatwick to the Table Mountain city has been very popular with the weakness of the South African Rand against the Pound making an already good-value destination even more affordable. This more adventurous spirit can also be seen in package bookings to Goa and The Gambia which are up 10% and 7% respectively.

HOT FOR SUMMER The top 5 destinations for summer 2017.

3 Turkey

4 USA Hot for summer: Based on UK tour operator and flight-only bookings up until 2nd May 2017

2 Spain

(including mainland, Canaries and Balearic islands)

Greece

5 Cyprus

24%

39%

Cuba

Cancun

17%

UNEXPECTED FAMILY DESTINATIONS

TALES OF THE UNEXPECTED Parents are also doing their bit to boost long-haul destinations and they’re taking the kids to destinations you might not expect. Having travelled abroad with the kids since they were very little, they’re now more happy to expand their horizons and travel further afield. Family package holidays are up 24% year-on-year to Cuba, up 39% to Cancun in Mexico and up 17% to the Dominican Republic. What’s more, families now account for a third of customers in Cuba and almost half in Cancun and the Dominican Republic. Clearly the value of a Caribbean all-inclusive is a decisive factor for parents. Looking closer to home, other destinations showing a growth in demand from families on the search for a package holiday include Almeria in Spain (+27% year-on-year), appealing to those looking for a less busy and well known part of Spain, as well as Bourgas in Bulgaria (+74% year-on-year) which is good value for money compared to some of the more traditional package holiday destinations this summer.

HOT VS NOT Sharm El Sheikh in Egypt is on hiatus so Brits are looking elsewhere for holidays in this popular country. Hurghada is attracting more and more British visitors, reflecting a return to popularity for Egypt’s good value winter and summer sun, though visitor numbers are considerably lower than a few years ago. Thomas Cook has also just launched Marsa Alam as a new winter sun destination to meet the increased demand.

LOOKING AHEAD Summer 2018 holidays launched in March; the sales to date show the same top four compared to summer 2017 sales this time last year. Bigger trips, like Orlando, take a lot of planning so it’s no surprise that holidaymakers want to get this booked early so they can save for theme park tickets. Weddings are driving the early Cyprus bookings, again not something you leave until the last minute! Further down is a shift away from Spain and back to Greece and Turkey. The usual Greek destinations make it into the top ten but the small island of Santorini is the surprising entry as people don’t want to risk missing out on their favourite hotel in this trendy hotspot. But with summer 17 not even in full swing yet, it’s too early to call which destination will be top of the popularity charts next year.

SUMMER 2018 RANKING

DESTINATION

01 02 03 04 05 06 07 08 09 10

ORLANDO-MCO CANCUN-CUN LARNACA-LCA ZAKYNTHOS-ZTH DALAMAN-DLM PA P H O S - P FO A N T A LYA - AY T PA L M A - P M I RHODES-RHO SANTORINI-JTR

Turkey has had its troubles but is still popular – it’s number three for British customers this summer, although more popular with later bookers, whereas those booking six months to a year ahead tend to choose Spain and Greece. Because Turkey’s tourism boom has been relatively recent, its hotel stock is new and good quality – you can get a five-star all-inclusive there for the same price as you would a threestar equivalent in the Balearic Islands. Egypt can still take heart: Greece’s financial woes in 2015 combined with the refugee crisis saw tourist numbers fall sharply. In 2017 it is firmly in demand. Suddenly, two years seems a very long time ago.

Dominican Republic

SUMMER 2017 RANKING

DESTINATION

01 02 03 04 05 06 07 08 09 10

ORLANDO-MCO CANCUN-CUN LARNACA-LCA ZAKYNTHOS-ZTH PA L M A - P M I LAS VEGAS-LAS PA P H O S - P FO TENERIFE-TFS HOLGUIN-HO G ARECIFE-ACE

Looking ahead: Based on like-for-like early UK tour operator bookings up until 2nd May 2017

HOW DO WE GET THERE? U N D ER TH E I N FLU EN CE: W H EN LOO K ER S B ECO M E BOO K ER S Searches 2017

Mobile

Desktop Tablet

TIMING IS EVERYTHING

DO we ever stop thinking about holidays? According to our insight, at least one in four Brits claim always to have travel on their mind.

Mobile

Desktop

But different factors prevail when choosing where to go and how to book.

Transactions 2017

January is still the peak month for holiday bookings – almost one in five Desktop of Thomas Cook’s package holidays Tabletthe first month of the year. Not only does are booked during everyone want to get Christmas out of the way before thinking Mobile about their next trip away, but tour operators also respond 0 40 60 with early booking offers and20advertising. Are the deals80driving the bookings? They certainly play a part: good deals can be found year-round but none drive a spike in the figures higher than those we see in January.

Tablet is One of the clearest splits in the decision-making process governed by children – or lack of them. We’ll see what effect pester power has on the type of holiday families go for in 2014 2016 2017 without chapter five, but2015 in terms of planning ahead, those kids are stealing a march on parents.

Although a proportion of holidaymakers without kids do book last minute, particularly the Independents (see p. 4-5; Who are we), perhaps more than you think are planning ahead. In fact 37% of those with children left booking their main overseas holiday until a month or less before departure, compared with 23% of those without children. Do parents have less time to plan than their child-free peers? BOOKINGS

BOOKINGS BY THE HOUR

It’s happy hour! Bookings really peak around wine o’clock, when the kids are in bed and we chill on the sofa – possibly with a glass of something nice

Just curious…we fire up the browser at breakfast time and keep an eye on things as the day progresses. Searches start higher than actual bookings as we compare what’s out there

Bookings overtake searches around the time most of us are packing up work for the day – it is time to go home and get that holiday in the bag

SEARCHES BOOKINGS

1 NIGHT

MORNING

Bookings by the hour: Based on search and booking data from thomascook.com

100

Looking at bookings hour-by-hour is also revealing. On average, holidaymakers will visit thomascook.com 11 times before completing their booking and with research traffic steady throughout the day, we really do have holidays on our mind from the moment we wake up. Figures show interest creeping up from breakfast onwards, including people passing the time on the daily commute and a sneaky look for holidays during office hours and over lunch. Time spent searching for holidays slowly gives way to time spent actually booking them and transactions overtake searches around 5pm, before peaking between 8-10pm. Is it a coincidence that this is the time when you are most likelyJAN to have aFEB glass ofMAR wine in APR your hand? NOV DEC MAY

Family or not, practicality prevails when booking the main overseas break: 55% of each group say getting the best holiday for their budget is the most important factor – but it’s good quality and value for money they’re after rather than getting something cheap. The beach is also key to both: 40% of families and 41% without kids name it a decisive factor in choosing their MAYholiday. JUNE JULY AUG SEPT OCT

100

AFTERNOON

EVENING

LEFT TO OUR OWN DEVICES

GOING MOBILE Mobile is the king of search for obvious reasons: you are more likely to have a phone in your pocket than be sitting at a desk. Smartphones show you all you need to know about the holiday, from pictures to the price, but desktop remains the preferred choice for booking. Financial transactions are still easier from the keyboard.

The most significant shift in the last three years has been the rise in people using their mobiles to search for holidays, up 113% on thomascook.com between May 2014 and April 2017. As for looking vs booking, there is a definite play off between mobile and desktop channels. Tablets and smartphones dominate searches whereas desktop and laptop are the preferred choice for actually making a booking. Given it’s often the two most important and treasured weeks of the year, perhaps it’s no surprise that people want to use a bigger device to check all the details before clicking book.

+113%

Mobile

That is not to say high street travel agencies are a thing of the past. When asked, 43% of customers said they use shops for research and 60% said they are one of their preferred means of booking. Mobile

Searches 2017 Desktop

Even for dedicated web users, two-thirds of those who research their holiday online come into store as they still value speaking face-to-face with a travel expert who can help them design a holiday to best suit their needs. Unlike online, where traffic is relatively spread out throughout the Desktop week, it is the weekend when Brits take full advantage of speaking to an expert. While Sunday is currently seeing the biggest growth in bookings year-on-year, it is Saturday which remains the busiest day in stores – 20% of an average Tablet week’s bookings take place on Saturday.

Tablet

2015

2016

Tablet

Mobile 0

2014 2015 Transactions 2017

100

20 And we’re off! The40deals are in60store and 80 online, the ads on TV promise sunny skies, what better escape from a gloomy January than grabbing an early booking offer?

100

2016

2017

Going mobile: Based on search data from thomascook.com up until April 2017

Desktop Tablet Mobile

BOOKINGS BY THE MONTH

2014

Desktop

2017

BOOKINGS

The calm before the storm. There is a flurry of interest as winter bites, but Christmas is the big stumbling block – everyone wants the big day out of the way before they start thinking about holidays

BOOKINGS

MAY

JUNE

JULY

AUG

SEPT

OCT

NOV

Bookings by the month: Based on booking data from thomascook.com between May 2016 and April 2017

MAY

JUNE

JULY

AUG

SEPT

OCT

NOV

DEC

JAN

FEB

MAR

APR

MAY

GOGGLEBOOKS How VR changes our view

Technology may have shifted consumers to other channels but, ironically, it may now be pulling them back to stores. Virtual reality headsets deliver a dose of the future at eight Thomas Cook travel agents from Glasgow to London – with some 40 immersive videos to view. They allow holidaymakers to experience the holiday without needing to set foot on SEARCHES a plane. Some BOOKINGS say it’s a gimmick but it’s one

that customers like. After experiencing the New York helicopter fly through SEARCHES BOOKINGS sales at the eight stores increased by 28% while the Royal Caribbean’s cruise ship video led to a 45% increase.

1 NIGHT

MORNING

LET’S TALK ABOUT MONEY A R E YOU S PEN D I N G W I S ELY?

ONLY HALF OF BRITISH HOLIDAYMAKERS KNOW WHAT THEY WILL BE CHARGED FOR USING PLASTIC ABROAD A YEAR on from Brexit, the best anyone can say is that we still don’t know what it will mean. With so much uncertainty around the Brexit negotiations, it’s fair to say that foreign exchange is likely to remain volatile for the foreseeable future. That means that now, more than ever before, it is important to make informed decisions about our holiday spending. Unfortunately, travel money seems to be the last thing on our minds – quite literally. While Brits might book their travels up to a year in advance and keep an eye on holiday prices, less than half keep track of currency rates throughout the year in order to change their money when the rates are good. Furthermore, a third of of us use the pay day closest to departure to buy our currency, suggesting foreign exchange is frequently left to the last minute.

IS PLASTIC FANTASTIC? It’s clear that spending habits on holiday haven’t caught up with the way we spend our money at home. Less than half of all consumer transactions are now made using cash in the UK1 however, more than two in three holidaymakers like to take all the money they expect to spend in hard cash. Nobody walks around with many hundreds of pounds on them at home, so why do we do it on holiday?

83%

34%

use their debit / credit cards abroad

take foreign currency in cash

Research based on a survey of 2,635 Thomas Cook customers in April and May 2017

The answer could lie in the credit and debit card fees we’ll be charged abroad. 42% of us worry about these fees and half of us admit that we don’t know how much we will be charged. When it comes to withdrawals, almost half (48%) believe they will be charged less than 2% by their bank, when in reality they’ll be charged on average 2.73% of the withdrawal (and often an ATM fee on top). This can soon add up on a two-week holiday. Another common pitfall is opting to pay in Sterling (presented as GBP on the terminal) rather than the local currency if you do have to use your usual credit or debit card. When asked, less than 20% of holidaymakers correctly answered that they would be charged less by choosing to pay in the local currency at a restaurant.

49%

16%

35%

A SAFER SOLUTION More Don’t Know (AND THELess BEST DEAL) Despite all the complicated and costly fees, more than one in three of us still use our regular debit or credit card while on holiday. So how do we get the convenience and security of plastic without the associated fees?

42%

worry about the fees and charges for using credit / debit cards abroad

50%

Only half said they knew how much they would be charged for using credit / debit cards abroad

The answer is in a pre-paid currency card, used by only around one in ten of us. A currency card is just as easy to use as a credit or debit card and just as widely accepted for pointof-sale transactions. There are no charges for card payments and only a small fee for using the ATM – but remember to pay in the local currency when using it in a shop or restaurant. The currency card locks in the rate at the time you transfer money onto it just like changing money in the UK. You can also track your spending online or on an app – great news for the 44% of us who set a strict budget for holiday spending. What’s more there is help on hand 24/7 and if you lose it, your money is secure and you can typically get a replacement sent to your hotel within 24 hours.

£100 PLEDGE3 Forward planning is key. Considering luggage options before you go, prebooking tickets for days out and avoiding the use of credit and debit cards while on holiday, are all easy ways to save money. By taking these four simple steps a family of four will save at least £100.

However, take-up of pre-paid cards has been slow. There are several versions on the market but only 13% of respondents use one, compared with 83% who take foreign currency in cash. That balance needs to switch.

1 x family day at the waterpark Book in advance

To end on a brighter note, at least we know not to change our money at the airport any more: only 2% of customers resort to the terrible exchange rates airside. It’s far better to restrict airport spending to duty free!

£100 Pay on the day

£126

THE SIX GOLDEN RULES OF TRAVEL MONEY MONEY NEVER

Total savings

£26

5kg extra luggage allowance Book in advance

£16

leave it until the last minute. The average spend on holiday for a family of four over two weeks is £1,0002 – how many other transactions of that size would you leave to chance?

Pay on the day

£50

CHECK

exchange rates a few months before departure. Save up and then buy when the rate is good. You can set alerts to your phone or computer and be notified when the rate gets to a certain level

Total savings

£34

4 x meals out at £100 each

TAKE

a mixture of cash and pre-paid card – you’ll still need cash for the little things, like tipping, but most places take plastic

USE

Debit card

Currency card / Cash

£375

£358

a pre-paid card as much as possible for point of sale transactions and ATM withdrawals – only use your debit / credit card as a last resort and always select to pay in local currency, never GBP

Total savings

£17

4 x £250 cash withdrawals

MINIMISE

cash withdrawals. Depending on the ATM, your bank and the currency you select, you could end up paying on average 2.73% in fees (and often an ATM fee on top)

Debit card

Currency card / Cash

£946

£901

Total savings

£45

BUY

attraction tickets in advance 1 Payments UK 2016, 2 Global business intelligence provider, RFi Group, 3 See inside cover of report for £100 pledge sources

WE ARE FAMILY… … A N D I ’ V E B ROU GHT M Y GR A N D PA R ENTS W ITH M E TWO adults and 2.4 kids have been the mainstay of the holiday market since packages began. But times change and now single parents and multi-generational bookings are both growing. In fact, over half of holidaymakers said they’ve either holidayed with grandparents or are considering it. The F-Word – family – is the metric that applies to all of the holidays you take, and with 176 years of experience, Thomas Cook is well-placed to spot the latest trends. Grandparents, for example, are a wonderful travel accessory: not only can they free up time for busy mums and dads, they might pay for dinner out – or even the whole trip. A range of different hotel concepts back up what we know about our customers. Sunwing, Sunprime, Sentido and the new Casa Cook have all been designed to suit the demands of holidaymakers at different stages of their lives - no matter how many kids or parents are on board. Here are the seven ages of holiday we think everyone is likely to take in their lifetime:

With your parents

You are young and it might be your first time abroad – perhaps your first time on an aeroplane. Everything is new and different. The Med is most likely for kids and their young parents, maybe the US or further afield for tweens, teens and older mums and dads (see p. 4-5; Strivers and Thrivers). A sunny all-inclusive is the easiest way to enjoy it. Sunwing family resorts all have easy access to the beach, multiple pools, kids’ club (with mascots Lollo and Bernie), a teen lounge and a range of activities on tap. Seven nights’ all-inclusive at the Sunwing Resort Fanabe is from £2,997 for a family of four* 2

With your mates

You have been to the Med but never like this: long nights, bright lights and one thing in sight – having a good time. Young, free and single, this is your first taste of independent travel (see p. 4-5; Millenials) and the perfect time to enjoy a break in the sun. Fashions may change but Ibiza is still the leader where club culture is concerned (although its beautiful people are a little older than they once were). This summer it’s Ayia Napa and Zante which are pulling in the groups on their first holiday without mum and dad – perhaps not surprisingly given Greece and Cyprus are in vogue this summer. Club 18-30 will help you see it in a spirited style. Seven nights’ self-catering at the Tsokkos Holiday Apartments in Ayia Napa is from £2,019 fox six adults* *All holiday prices include flights

THE SEVEN AGES OF HOLIDAYS

+74%

2. Zakynthos 3 On your own You have seen some of the world, courtesy of mum and dad, now you want to go further without them. It may be a gap year or a long summer break between college and university, but an independent trip is the best way to spend it. Hop on a flight to anywhere – you may never have this sort of freedom to travel again. Bangkok has long been a favoured gateway for backpackers, but Cape Town makes a surprising alternative. Nestled at the foot of Table Mountain, this beautiful metropolis is a melting pot of cultures, coastlines and scenery. Don’t forget to stop by the jazz cafes in the heart of the city. Fly one-way from Manchester to Cape Town from £419 with Thomas Cook Airlines. 4 With your partner You’ve grown up but you still want a stylish break without kids, somewhere you can enjoy the local culture with your partner (see p. 4-5: Independents). Or just lounge by the pool with a backdrop that will look good on Instagram. Casa Cook on Rhodes ticks all the boxes, bringing the quality of a city break to a sunny Greek Island. Good food and wine are as much of a draw as the sun loungers. Seven nights’ bed and breakfast at the Casa Cook Rhodes is from £2,275 for two adults* 5 With your children You have kids of your own and you want their holidays to be even better than the ones your parents took you on. For Thrivers (see p. 4-5), a long-haul break takes everything up a gear. A Caribbean all-inclusive packs in the kind of activities you might not have the chance to do at home – unless you belong to a lot of expensive clubs: sailing, watersports, golf…all under a reliable Caribbean sun. Seven nights’ all-inclusive at the Akumal Bay Beach and Wellness Resort in Cancun is from £4,439 for a family of four*

3. Paphos ONE-OFF WONDERS 4. Larnaca

6 With your parents (again) As a teen you swore you would never go on holiday with them again. This time, you are begging them to come along. Good company, good babysitters or a good bank balance? Whatever your motivation, the extended family dynamic works well in either a villa or a hotel. Ocean Beach Club by Sunwing is a mix of the two. Apartments have their own swimup pools and kitchenettes but are served by a hotel restaurant, so no-one is lumbered with the washing up all the time. Seven nights’ all-inclusive at the Ocean Beach Club by Sunwing in Gran Canaria is from £3,895 for four adults and two children* 7 On your own (again) The kids have flown the nest leaving the Boom Timers described on p. 4-5 with more time to spend on holiday. Sunprime hotels are aimed at experienced travellers looking for a quiet, contemporary adult-only hotel. There is an emphasis on fitness, they all have a gym and spa, and are within walking distance of the beach and all the usual resort amenities. Seven nights’ half-board at the Sunprime Monsuau in Majorca is from £1,375 for two adults*

+14%

FAMILIES influence bookings in different ways. Overleaf, see what kids had to say about their holidays and draw your own conclusion on how far parents are prepared to indulge them.

One statistic does stand out in regards to ‘pester power’: Lapland is booming. Bookings for the once-in-a-lifetime experience where children and parents alike meet Santa and glide across the snow on reindeer and husky sleigh rides are up 59% year-on-year for this winter. As Lapland is 95% families, we can safely assume kids are the driver for the chilly north.

Greece 0

+26%

Turkey

Cyprus

Overseas weddings, hopefully another one+100% off1.booking and often with the whole family Kos in Greece tow, are also seeing a mini-boom when it Turkey comes to short-haul destinations. For many years the likes of Cancun, Cuba and the +74% US 2. Zakynthos have been top of the wedding listsCyprus but this 1 place closer to 4 year’s 2 nuptials are taking 3 +26% home. Love is in the air, just not for long-haul. 3. Paphos 4. Larnaca 1. Kos

+14% +100%

2. Zakynthos

+74%

3. Paphos

+26%

4. Larnaca

+14%

One-off wonders: Based on UK tour operator bookings up until 2nd May 2017

PESTER POWER W H O’ S C A LLI N G TH E S H OTS I N YOU R H O LI DAY H O U S EH O LD? 75% OF PARENTS ASK FOR THEIR CHILDREN’S OPINION WHEN PLANNING A HOLIDAY AND 85% OF KIDS SUGGEST PLACES THEY’D LIKE TO GO FIRST the good news: planning a holiday is something families do together. 75% of parents ask for their children’s opinion when planning a holiday and 85% of kids suggest places they’d like to go. The bad news? You can get rid of that sombrero if you want to be seen by the pool with them: one fifth of kids admit to being embarrassed by their parents’ dodgy holiday wardrobe. From the mouths of babes came some of the most revealing research, and, as pleasing as it was to hear that parents listen to their kids, those same parents may get a shock when they realise where some of their ideas are coming from. Of the kids surveyed, 10% listed big-screen favourites such as James Bond and, strangely, Ghostbusters for holiday inspiration. Small-screen favourites included Planet Earth, Keeping Up With The Kardashians and, even more surprisingly, Coronation Street. At least you can’t accuse them of being predictable.

FAMILY PLANNING Celebrities were always going to be a big draw. When asked what famous person they would want to go on holiday with, the list of dream companions went from the surprising (the Power Rangers and Theresa May) to the sensible (David Attenborough and Prince William and family). Taylor Swift, Katy Perry, Barcelona FC’s Neymar and the whole of One Direction were also favourites. However, mums and dads can take heart that they were the top choice of holiday companions, outstripping celebrities by four to one. Perhaps kids can be realistic after all. Best friends were only marginally less popular than parents, but siblings were way down the list. At least brothers and sisters can feel reassured by the fact that they were more popular than grandparents: only 4% of kids said grandma and granddad were their number one holiday companion. Sorry oldies - at least mum and dad still love your wallet!

WHY CRY OVER WIFI? While perhaps for parents the holiday doesn’t officially start until they’ve unpacked and have a glass of wine in hand, the kids are in the holiday spirit from the get-go. The aeroplane journey came second in the list of favourite things to do on holiday with a fifth of kids rating it top. Once on the sun loungers, gratifyingly, young people seem less bothered about WiFi than the grown-ups. Spending time with family was more than twice as important as getting online, and being active outdoors also ranked highest among the favourite things to do on holiday – provided being active outdoors includes going to the pool or beach or to waterparks and theme parks (we think it does). Even more pleasing, parents aren’t such an embarrassment to their kids after all. Aside from the odd wardrobe fail, and the evidence of it on social media, 20% of kids said nothing about their parents in particular embarrassed them. The small but acute sources of shame included “saying weird things”; “making me dance or sing”; “trying to speak other languages” and “kissing in public”. All of these, however, may be linked to having too much to drink which also featured in the list of embarrassing moments.

KIDFLUENCE If you could go on holiday with anyone who would it be? 1

What are your favourite things to do on holiday?

3 2 1

1. My parents 41%

1. Go to the pool or beach 27%

2. My best friends 36%

2. The aeroplane flight 18%

3. Brothers/sisters 11%

3. Go to waterparks/theme parks 18%

4. A famous person 8%

4. Do some sightseeing 11%

5. My grandparents 4%

5. Do things I wouldn’t normally do at home 9%

What do you find most embarrassing about your parents on holiday?

1. Posting embarrassing photos on social media 20% 2. Their dodgy dancing 14% 3. Their embarrassing holiday clothes 18% 4. Trying to show off around the pool/beach 23% 5. Other 25% (20% of who said “nothing”)

Research based on a survey of 5 to 13 year olds in partnership with First News in May 2017

EUROVISION W H O’ S LE A D I N G TH E C H A RGE A N D W H O’ S SCO R I N G N U L PO I NTS I N TH E H O LI DAY STA K ES?

RACTICALITY Poking fun at our nearest neighbours has become something of a national sport – one of the few we are still good at.

nsfer, baggage, money But while boozy Brits bemoan the antics of sunbed stealing Germans, or worry about the French going on strike (again), one thing still binds us together: the value we put on a precious week or two away.

Given the squabbles of the European political union, a recent survey of people in the UK, Germany and Scandinavia returned surprising results: 90% prefer to mix with other nationalities their holiday. Perhaps even more surprising is the fact that, laptop,onwifi in many ways, we are not so different from our European neighbours in the way we holiday. That said, it seems as though some stereotypes do still ring true. From excitable PRACTICALITY Brits to practical Germans, here are some of the trends which private transfer, baggage, money both unite and divide us:

ONNECTIVITY

CURIOSITY

map / compass

PRACTICALITY CONNECTIVITY laptop, wifi

NTICIPATION

hes - sunglasses, flip flops

CURIOSITY map / compass

BEACH READY

ORK VS PLAY

ing pool, water slide brief case

Holiday prep is as important as the holiday itself for theANTICIPATION Brits. 87% treat themselves to new holiday clothes holiday - sunglasses, flip flops before jetting off, clothes compared to 55% of Germans. This includes: 76% of Brits buy new swimwear vs 56% of Germans

OING NATIVE

le - speach bubbles?

WORK VS PLAY

58% of Brits buy flip flops vs 18% of Germans swimming pool, water slide

brief case

51% of Brits buy sunglasses vs 22% of Germans

Sun ready: We take the lead in the GOING NATIVE SPF stakes too – 93% of Brits buy new suncream for apineapple holiday compared with - speach bubbles? 81% of Germans

Money matters: More than half of Germans (66%) and Brits (55%) cite price as the most important factor in choosing their holiday First rate or wurst rate? Despite being careful with what they spend on the holiday itself, German travellers could learn a trick from the Brits when it comes to spending money. 32% still buy their foreign exchange at the airport where the rate is worst, compared with only 2% of Brits All in to win: 84% of Brits prefer allinclusive hotels compared with around half (55%) of Scandinavian travellers Travelling light: 20% of Germans say using a baggage service to transfer luggage from home to airport is important to them, compared with only 5% of Brits Travelling in style: Germans are twice as likely than the Brits to use a private transfer service from home to their departure airport – 30% compared with 14% of Brits Quality time: Family-friendly flight times are important for 40% of Germans compared with 33% of Brits

, money

ey private transfer, baggage, money

CONNECTIVITY laptop, wifi

CONNECTIVITY

Go Dutch; get online: 82% of Dutch holidaymakers expect high-speed broadband in their hotel compared , flip flops with 61% of Brits and 49% of Germans

CURIOSITY

map / compass

Digital detox? No thanks. Only 10% of Germans and 12% of Brits are happy to switch off on holiday

PRACTICALITY private transfer, baggage, money

slide

lops

ANTICIPATION

holiday clothes - sunglasses, flip flops

CONNECTIVITY laptop, wifi

bles?

WORK VS PLAY swimming pool, water slide brief case

ANTICIPATION

The Brits just can’t wait to get away. They typically book their holidays 30% further in advance than customers in other markets, all of whom are pineappleremarkably - speachsimilar bubbles?

GOING NATIVE

Time of booking prior to departure: Netherlands – 98 days Germany – 106 days Nordics – 107 days Belgium – 107 days UK – a whopping 151 days

CURIOSITY map / compass

WORK VS PLAY Out of office: The vast majority of Brits (76%) and Germans (85%), ANTICIPATION encouragingly, have no interest in the ideaholiday of hotels that feature workspaces clothes - sunglasses, flip flops with desks and phones to help them get the last bit of business done Water babies: You can’t keep the Brits away from the thrill of water slides and WORK VS PLAY pools - 82% of Brits said they were very importantswimming compared to 57% water of Germans pool, slide

brief case

GOING NATIVE Live like a local: Germans put their European neighbours to shame when it comes to living like the locals on holiday. While 60% of Germans are very interested in holidays that offer ‘local experiences’, just 23% of Brits and 8% of Swedes voiced a similar desire Get out! 37% of British families like to explore new places compared with only 7% of Swedish families

GOING NATIVE pineapple - speach bubbles?

So what does this tell us?

Whilst our European neighbours are putting the Brits to shame when it comes to exploring the world and living like the locals on holiday, we could teach them a thing or two in terms of getting holiday ready: holiday booked? “wunderbar”, suncream packed? “ja”, embarrassing speedos at the ready? “check”, and relax...Skål!

Research based on customer surveys carried out across Thomas Cook’s key markets in 2016 and 2017.

BACK TO THE FUTURE A ROU N D TH E WO R LD I N 176 Y E A R S 176 years ago, a one-day rail excursion at a shilling a head from Leicester to Loughborough marked the start of a whole new kind of company - devoted to helping Britons see the world. 31 years later, in 1872, Thomas Cook led his first world tour: a 222-day odyssey that cost £300 (equivalent to more than £30,000 today). Thomas Cook and his son, John Mason Cook, led the travel industry from the very start and built their success on continuously innovating and adapting to holidaymakers’ needs. This spirit of innovation continues today. In this chapter we look at the pioneering moves Thomas Cook made in those early years and how we’re continuing to adapt to the what holidaymakers want from their two most important weeks of the year. On the first edition of Cook’s Continental Time Tables, published in 1873, was a stagecoach and camel train. However a clipper ship and a steam locomotive also appear on the distinctive orange cover – a reference perhaps to where the company was going: direct to modernity. Publishing Cook’s Continental Time Tables was one of the first steps towards turning a profit. Costing a shilling and subtitled the Tourist’s Handbook, it was conceived as “a Cheap, Concise and Simple Guide to All the Principal Lines of Railway, Steamers and Diligences on the Continent of Europe”.

of Athens – is once again a bestseller for summer 2017. While Thomas Cook is expecting a return to some of the more traditional destinations next summer, its services have very much moved with the times and needs. Cook’s Circular Note, introduced in 1874, was a forerunner to the traveller’s cheque and allowed holidaymakers to get local currency in exchange for a paper note issued by Thomas Cook. Fast forward and holidaymakers can now use one pre-paid card for numerous currencies. Introduced in 1868, the Hotel Coupon was used by travellers to pay for accommodation and meals. This provided a system of fixed pricing at certain accommodation, opening the world to a new generation of travellers. Nowadays, holidaymakers wear a wristband to enjoy their all-inclusive benefits. And what about the reps who meet you at the airport and transfer you to resort? As early as the 1880s ‘Uniformed Men’ would point Thomas Cook customers in the right direction, like a form of street-bound concierge. These imposing looking figures were the ancestors of today’s holiday reps and could even hold trains to allow VIP stragglers time to board.

Here then, was the search engine of its day – the first step towards mass-market travel.

THE SHAPE OF THINGS TO COME

FULL CIRCLE

So what do holidays of the future look like? The past suggests that favourite destinations will endure. But for tomorrow’s travellers, convenience and customisation are king.

If Cook’s Continental Time Tables had the answers, its newspaper, The Excursionist, provided the inspiration – not unlike the holiday brochures of today. Founded by Thomas in 1851, John expanded it internationally across America, Europe, Australasia and India to tell customers what destinations and services the company had to offer. And there were plenty. While Cook’s early tours stuck to high-minded Victorian ideals, fashion began to infiltrate in the Edwardian era. The temples of Greece, the pyramids of Egypt and the great galleries of Europe gave way to the beaches of the French Riviera and the north of Spain. Now we see fashion turn full circle. The Costa Brava, one of the first package holiday destinations in the 1960s, is back in the summer sun brochure for 2018; along with Malta and Madeira. And after a turbulent couple of years, Greece – where those early tourists would have clamoured to see the sights 18

Try before you buy is a given with most high street purchases these days. Shoppers are now looking for this option when it comes to their summer holiday. While in-store virtual reality is still on a relatively small scale, virtual hotel tours could become much more mainstream. A growing number of hotels on thomascook.com already allow guests to check out room plans before they arrive. Next up will be 360 degree videos, so the argument over who is having the top bunk can be settled before the kids even step foot in the room. Beacon technology is also on the horizon. This will enable hotel guests to unlock their room, inform staff of their preferences and pay their bill via a Bluetooth enabled app on their phone. Order Anywhere will work in much the same way: Bluetooth will connect guests with the waiters who can bring them whatever they want, wherever they may be – whether that’s a cocktail on an inflatable flamingo in the middle of the pool!

FROM STATION TO INNOVATION If disruption is one of the business buzzwords of the 21st century, we might call Thomas and John Mason Cook the disruptors of their day. Most importantly, they sowed the seeds of innovation that are still at the heart of the company in 2017. The travellers of today can thank Thomas Cook for:

THE HIGH STREET TRAVEL AGENCY The first Thomas Cook store opened on Fleet Street in London in 1865. Today Thomas Cook’s Discovery stores are designed to bring all aspects of a holiday to life through video reality and video content.

COOK’S CIRCULAR NOTE This early form of travellers’ cheque launched in New York in 1874 before paving the way to today’s pre-paid currency card

THE HOTEL COUPON This system of payment paved the way for fixed price bed and board in major cities - it was an early form of today’s all-inclusive wristband

THE UNIFORMED MAN Need help abroad? The Uniformed Man was a precursor to the holiday rep. Today Thomas Cook UK has hundreds of reps across the world making sure customers have a holiday to remember

Thomas Cook press office pressoffice@thomascook.com +44 (0)1733 417 272