Evolution of the UK Holiday Industry: A Historical Overview

When I joined the tour operating world in 1990, tour operators were two a penny. ILG, the company I worked for, had numerous brands such as Intasun, Lancaster, Global, Club 18–30, and Horizon, to name just a few. After they went bust in 1991, the tour operating world started to change.

The major players then were Thomson, Airtours, Thomas Cook, and Owners Abroad, which rebranded as First Choice in 1994. After the Gulf War of the early ’90s, the holiday industry started to recover. Although the internet had begun, people were still booking their holidays at travel agents such as Lunn Poly, Thomas Cook, and Going Places. Who remembers searching the TV for a Teletext holiday? Unbelievable now when you think about it.

By the mid-’90s, the European Council relaxed the rules to create a common aviation area across Europe, and this was the start of the no-frills airline revolution. Ryanair, a company that had started in 1984, was known—believe it or not—for its customer service! In 1988, Michael O’Leary, who was an accountant at the time, was sent in to try and save Ryanair as it was losing millions of pounds. EasyJet started in 1995 when Stelios Haji-Ioannou took a loan from his shipping-tycoon father. He said at the time he didn’t have a clue what he was doing. Interestingly, both companies looked to the American airline Southwest for inspiration in building what you see today.

Between 1996 and 2015, passenger numbers at UK airports increased by 85 percent, from 135 million to 251 million—driven by flights sold by low-cost carriers and online booking. The traffic was also coming from more regional airports such as Stansted, Luton, and Liverpool.

This was definitely having an effect on the tour operators, with people now booking directly or with dynamic packaging companies, often for shorter trips. The traditional 7- or 14-night holiday was becoming a thing of the past. This squeeze brought about mergers: Airtours (rebranded as MyTravel in 2002) merged with Thomas Cook in 2007, and in the same year TUI, which operated the Thomson brand, merged with First Choice. Around this time, OTAs (Online Travel Agents) started to take off. On the Beach launched in 2004 from a terraced house in Macclesfield, and Love Holidays began in 2012.

The 9/11 attacks, subsequent wars, the global financial crisis, and the pandemic wreaked havoc across the holiday industry over the years, ultimately leading to the collapse of Thomas Cook in September 2019.

That left a gap in the market, which was filled by a company that had actually started in 1971 as Carpenters Air Services, flying flowers from Guernsey to the UK. After going through various guises, Jet2 launched its first scheduled leisure flight from Leeds Bradford Airport in 2003. In 2007, its holiday division was launched, and it has since become the leader in the package holiday industry.

Another company that began to fill the Thomas Cook void was already an established player in the airline industry. In November 2019, EasyJet Holidays was launched. It quickly realised that a seat sold as part of a package holiday generated more money per head than a seat-only sale.

When you look at the top five ATOL (Air Travel Organiser’s Licence) holders as of April 2025, it makes for interesting reading:

1. Jet2holidays

2. TUI

3. Loveholidays

4. easyJet Holidays

5. On the Beach

Now, I know you may think I’m mad, but don’t be surprised to see Ryanair Holidays within the next five years—or maybe even sooner. In fact, in a roundabout sort of way, they already exist without you knowing it. Ryanair has many partners in the holiday world, but the most recognisable are TUI, On the Beach, and Love Holidays—all of which include Ryanair flights in their packages. So don’t be surprised if Ryanair eventually takes over either On the Beach or Love Holidays in the future.

To borrow a football analogy: the holiday industry is a funny old game!