This report analyses the holiday purchasing patterns of UK residents. Holidays in this context are defined to include all holidays and breaks taken either within the UK or overseas.

In recent years, UK consumers have experienced quite significant changes in their lifestyles, influenced by changing employment and leisure patterns. These changes have led to different attitudes towards holiday taking, with potential travellers seeking more than just rest and relaxation from the holiday experience.

Independent leisure travel is becoming ever simpler to organise, threatening the continued existence of some sectors of the travel trade — notably the traditional High Street travel agent. Much of this threat comes from the Internet, and the opportunities it provides for the holidaymaker to cut out intermediaries. The Internet not only facilitates the retrieval of relevant travel information, a feature that it shares with systems such as Teletext, but also allows direct bookings online with tour operators, as well as with providers of transport and accommodation services.

One long-term trend has been the decline in domestic holiday's share of the total UK holiday market. The traditional 1- or 2-week seaside holiday has been particularly affected. The effect on the domestic holiday market would have been even more pronounced had it not been for an increase in the volume of domestic short breaks. Short breaks have also increased their share of the UK market for holiday travel abroad, making this an important growth sector.

This report features the results of original research commissioned by Key Note from NOP to elucidate the decision-making process of British-resident holidaytakers. Respondents were asked to identify the sources of information used and other factors that affected their choice of holiday, and to state the method of purchase used. Among the key findings was an increase in the use of the Internet, both as a source of information and as a 'DIY', online booking system.

There is a difference between the purchasing patterns of domestic and outbound holidaytakers. Most of those who holiday in the UK organise their trips themselves, while those who travel abroad for their holidays have until recently relied largely on the services of the package-tour operators and retail agencies, with even many non-package travellers using the services of the High Street travel agent.

However, this pattern may be about to change. The main scheduled airlines have been seeking to encourage direct sales and hence to cut down on the costs of commission paid to retail travel agents, while the newer low-cost carriers have been seeking to minimise their distribution costs by selling almost exclusively through the Internet.

The report also outlines many of the social and demographic changes that are likely to have significant long-term effects on holiday travel patterns, calling for a change in the balance of investment in tourism infrastructure. Such changes include a steady increase in the average age of the population of the UK and growth in the number of single-person households.