Overview of the UK Travel Market

A snapshot of the UK travel catering market, based on the publication CaterFile Market Reports 2006.

The UK travel market includes catering on board airlines, trains and ferries, and at railway stations, airports, motorway service stations and other roadside operators. It is worth just over £2b in total each year.

The market is heavily group oriented, with a few major companies dominating each of the sub-sectors. Groups account for 86% of the sector by value.

Source: CaterFile Market Reports 2006

The market is heavily dependent on the economic climate, particularly personal disposable income, which affects the number of holidays taken. The current economic climate has been favourable to the sector.

Key trends:

• Increased competition
• General concerns over food safety, quality and healthy eating
• Busy lifestyles dictate the need to provide "grab-and-go" items
• Strong use of brands
• Growth of low-cost airlines with little or no on-board catering provision

Total revenue within travel sectors declined by 2% between 2004 and 2005, with a 4% decline in the number of meals taken. The number of outlets increased, mainly at rail stations.

The main reason for the decline is the loss of revenue from airline meals. On-board rail catering has grown, but not enough to compensate.

Within the road travel market, consumers are more likely to be looking to minimise their journey time, so are less likely to make a leisurely stop at motorway service areas. Instead, they are purchasing grab-and-go snacks to eat either on site or on their journey.

The same trend has led to growth in the number of petrol forecourts with food retail and quick-service facilities, eg BP's Wild Bean Café.

Pricing of food and drink within the travel sector remains a key issue, with consumers consistently feeling they have been overcharged.

The total market is highly competitive and under pressure from sectors such as pubs, QSR and retailers.

This information is taken from the publication CaterFile Market Reports 2006, produced by Dewberry Redpoint. The full report is available to purchase at £695. For further details, visit the website www.caterfile.co.uk