The mainstream media likes to talk about the ‘pink pound’ and depicts the gay and lesbian market as a highly mobilised and urbanised body earning well above average incomes, that - for the most part in the absence of dependent children - they are keen to spend on themselves. Is this image of the gay consumer as a high-spending, frequent travelling goldmine reality?

Whether or not the gay market represents a prime target in this respect, to what degree is it a distinct market segment? The assumption is that sexuality is always an issue, but how does this market differ from the overall average in terms of its desires, priorities and aspirations?

The travel industry is keen to know the answers, to help it decide where and when to promote gay specific or gay friendly holidays, or whether it should pursue a softer approach, achieving kudos through branding and word of mouth and blog recommendations.



Table of contents:


Issues in the Market
Definition

Abbreviations

Market in Brief
Gay holidaymakers make straightforward choices
Power of the ‘pink pound’ overrated
A more tolerant society
Homophobia still out there
Honeymoons
It’s not all about sun, sea, sand and sex
A brighter, fairer future

Internal Market Environment
A more liberal society?
Stand up and be counted
Figure 1: Same-sex households in England and Wales, 2001
Money and location issues
Civil Partnerships: The honeymoon period
Gay-friendly destinations
New worlds opening up
Gay travel advice: know before you go

Broader Market Environment
Rising levels of disposable income drive the growth in travel
Figure 2: Trends in personal disposable income and consumer expenditure, 2001-11
Internet penetration
Figure 3: Internet penetration, by gender, socio-economic group and age, 2001-06
Population: youth market thinning out
Figure 4: Trends in the age structure of the UK population, by gender, 2001-11
Socio-economic population
Figure 5: Forecast adult population trends, by socio-economic group, 2001-11

Competitive Context
Figure 6: All and gay overseas holidays volume, 2001-06
Figure 7: All and gay overseas holidays expenditure, 2001-06

Strengths and Weaknesses in the Market
Strengths
Weaknesses

Market Size and Forecast
Strong performance, but nothing out of the ordinary
Figure 8: Volume and value of overseas gay holiday market, 2001-11
A fairer future?

Segment Performance
Popular destinations
Gay strongholds
Long-haul
UK
Active all-inclusives
Cruises: an American monopoly
Adventure seekers
Honeymoons too hetero

Companies and Products

Gay-specific tour operators
Amro Holidays
The Man Around Group
Mantrav International
Respect Holidays
Throb Holidays
WalkingWomen

Online gay travel operators

Gay cruise operators
Olivia Cruises and Resorts
RSVP Vacations

Gay travel agents
Madison Travel
Pride Travel

Channels to Market
Holidays taken
Figure 9: Overseas holidays by sexuality, August-September 2006

The Demographics of Sexuality
Sexuality: 2% openly gay
Figure 10: Respondents by sexuality, August-September 2006
Figure 11: Sexual orientation, by demographics, August/September 2006

Holidays Taken By Sexuality
Figure 12: Overseas holidays by sexuality, August-September 2006