The UK Travel Market – still very active for 2025
Declan Morton
February 1, 2025
As 2025 approaches, and with thoughts turning to holiday planning, the travel market in the UK reveals some competing trends. For many, an overseas holiday remains an essential luxury, a preference not necessarily limited by income. Demand looks set to continue growing in the UK and globally too. For the holiday sector this is important.
All the way through the travel supply chain, this is good for jobs, and good for specialist players in the sector – from suitcase sales and bureaux de change at home, to waiters and taxi drivers in the resorts.
Different pressures in the travel market – each fuelling demand
Demand for holidays since the pandemic has recovered well, so that in 2025 many destinations should see a return to at least 2019 occupancy levels if not more. At the same time, scheduled airline capacity, as was forecast in 2023, is still lagging behind pre-pandemic levels. This is due, at least in part, to delayed delivery of new planes. One consequence is that there is competition for seats, so load factors are expected to remain high. In turn that supports price levels for the airlines.
At the same time, hotel and resort capacity in Europe (and beyond) is broadly as it was in 2019, so there are beds to fill. And some (quite a lot) of those beds are tied into deals with the tour operators. And they may also have their own or contracted charter flight seats to sell.
Thus the UK travel market is being pulled in different directions. As a result, the consumer is often winning. Take package holiday prices, for example. In order to fill seats and beds for 2025, there are plenty of early booking discounts to be had on a range of package holidays. Plenty of offers will save 10% on ‘brochure’ prices, and in late summer 2024, 2025 holidays averaged £552 per passenger, compared to a £614 per passenger average for holidays in 2024.
An Essential Role for Foreign Currency
For bureaux de change, and for independent retail currency exchangers, this alignment of factors is a real opportunity. For holiday-makers – even if staying within Europe – foreign currency is an essential.
Many tourists have been won over by the convenience of carrying a debit, credit or currency card while abroad, but it’s difficult to beat cash for convenience. For small purchases like a coffee, lunch, or a taxi, cash is ideal. Plus, it’s a re-assuring back-up if electronic payment is just out of reach.
For foreign currency retailers this opportunity is influenced by numerous factors, but high on the list are these two. First, how to tap into their local market? Secondly, how to provide the sort of genuinely competitive exchange rate that will keep customers coming back? The two are, of course, connected.
Money4Travel: opening up the UK travel market for currency exchangers
Money4Travel is a new service from established foreign currency specialists Essiell Ltd. Quite simply, it provides the consumer with an intuitive click & collect travel money service which will always give the best exchange rate within their locality. Specifically, within a ten minute drive of their postcode – either at home or work.
Foreign currency retailers who subscribe to the service benefit from growing volumes of business, and they further build their brand by offering a buy-back service and a loyalty scheme, both of which come as part of Money4Travel.
The icing on the cake is that Money4 Travel also includes automated compliance screening , plus instant bank payment. Overheads are cut, making it even easier for independent and small-to-medium chains of travel money retailers to compete on a level playing field.
Automation, Efficiency, Profitability
Money 4 Travel simplifies the process of getting foreign currency. Its smartphone-accessible, click-and-collect service allows customers to order travel money online and pick it up at their chosen retailer or bureau de change. Money4Travel’s automated process streamlines the entire currency exchange operation.
With this service, the travel market is no longer dominated by big providers like supermarkets, the Post Office and banks. There’s more choice and greater convenience. Everyone benefits.
For currency exchangers, integrating this type of cost-effective solution is not merely improving or adding a service. It’s a strategic move. In 2024 and into 2025, as travellers seek to secure their holidays, providing an easy, efficient foreign currency service becomes essential. Money4Travel positions these businesses to meet this demand effectively, turning an important service into a profitable venture.
By Declan Morton, writer and editor at Money4Travel – the online service for foreign currency sales in the UK. More about the author.
For reference:
Global Outlook for Air Transport Deep Change, IATA, June 2024; Airline capacity constrained until 2025 due to delivery delays, spare parts – IATA, Reuters, 19th April 2023; Europe’s airline capacity proves ‘lower than expected’, Travel Weekly, 10th April 2024; TUI UK bolsters summer 2025 flying programme with focus on choice and flexibility, TUI UK; Package holiday price drops for 2025 sees early-bird savings, Holidays Pirates, 27th August 2024.
