This is a best prospect industry sector for this country. Includes a market overview and trade data.
Last Published: 8/2/2019
Overview

Despite a strong dollar and an uncertain political climate in Britain, the United Kingdom again sent a record breaking number of visitors abroad globally in 2017 and continues to represent a sizable opportunity for U.S. travel suppliers.  The UK ranks third in overall arrivals to the United States (behind Canada and Mexico, respectively), and thus the UK is the number one overseas market.  UK spending globally is on the rise, however, UK spending in the United States has seen a significant decline (11%) between 2016 and 2017.
 
 201520162017 2018 (estimate)
UK Visits Abroad to All Countries
(in millions)
65.770.872.872.8
UK Visits Abroad To USA
(in millions)
3.53.63.43.4
UK Expenditure Abroad to All Countries
(in $ billion, £1 = $1.23)
47.9753.8755.1054.00
UK Expenditure Abroad To USA
(in $ billion, £1 = $1.23)
5.475.895.265.1
 
Source: UK Office of National Statistics, Travel Trends 2017

After a sharp fall in 2009 due to global recession, UK outbound visitor numbers have increased every year since 2012, reaching a new peak in 2017.  According to Travel Trends 2017 (published by the UK Office for National Statistics (ONS)), there were 72.8 million visits abroad by UK residents in 2017.  This 3% increase comfortably surpassed the previous visitor record of 70.8 million set in 2016.  UK visitor spending abroad globally rose 2% between 2016 and 2017, however, UK visitor spending in the United States declined 11% from the previous year, falling from $5.89 billion in 2016 to $5.26 billion in 2017.

Depending on seasonality, there are an average of 1,000 direct flights between the US and UK each week.  Major airlines with US routes include: American Airlines, British Airways, Delta Airlines, United Airlines, and Virgin Atlantic Airways.  U.S. destinations are also serviced by two major disruptor airlines (Icelandic, Norwegian), as well as three major charter carriers (Jet2, Thomas Cook, and Thomson).  The top 10 U.S. cities with most frequent service are (in order): New York (JFK), Newark (EWR), Chicago (ORD), Los Angeles (LAX), Orlando (MCO), Boston (BOS), San Francisco (SFO), Dulles (IAD), Atlanta (ATL), and Miami (MIA).

According to research conducted by the Association for British Travel Agents (ABTA), online channels are the most popular method of booking vacation travel and are continuing to grow.  In-person or in-store bookings are the second most popular method and remain steady in the degree of their popularity.  For those using online channels to book, a PC or laptop is the most popular device followed by tablets and mobile phones.  The adoption of mobile phones to book travel, across all age groups, is growing.

Leading Sub-Sectors

According to the 2016 Market Profile for the UK (produced by NTTO), the top four U.S. state destinations for UK visitors are (in order): Florida, New York, California, and Nevada.  New York remains the number one U.S. city visited by UK travellers, and Orlando retains its number two ranking.  The top reason for UK visitation to the U.S. is vacation, followed by visiting friends/relatives.  Shopping is the number one activity of UK travelers, followed by Sightseeing, National Parks, and Fine Dining.  The fifth most popular activity in 2016 was Guided Tours, which grew over 2% to replace Small Towns/Countryside.

Opportunities

The UK traveler is often a repeat visitor, which presents an opportunity for destinations and offerings beyond the traditional gateways.  The National Park Service celebrated its centennial in August 2016, which continues to generate considerable interest in this segment.  Culinary tourism and authenticity (seeing the ‘real’ America) continue to trend with UK travelers. Cultural tourism, musical heritage, small towns, and historical sites also represent opportunities to attract UK travelers. The weak Pound (though expected to impact the budget-conscious traveler) also presents an opportunity for U.S. travel suppliers in terms of more affordable marketing or representation spend in the UK economy.

Web Resources

Industry Events:
World Travel Market
November 5-7, 2018
ExCel, London

IPW 2019
June 1-5, 2019
Anaheim, California

IPW 2020
May 30-June 3, 2020
Las Vegas, Nevada

Trade Associations:
Brand USA
U.S. Travel Association
Visit USA UK Association (VUSA)  

For further information, please contact:
Chrystal Denys
Commercial Specialist
U.S. Commercial Service
Tel: +44 (0)20 7891 3432
Email: Chrystal.Denys@trade.gov

 

 

Prepared by our U.S. Embassies abroad. With its network of 108 offices across the United States and in more than 75 countries, the U.S. Commercial Service of the U.S. Department of Commerce utilizes its global presence and international marketing expertise to help U.S. companies sell their products and services worldwide. Locate the U.S. Commercial Service trade specialist in the U.S. nearest you by visiting http://export.gov/usoffices.