20.2.2007

Interest rates to hit holiday spending

Nearly half of Britons are considering cutting back on their holiday spend this year after three interest rate rises in six months, according to a new survey.

The study of over 2,000 adults, conducted at the beginning of the month by YouGov on behalf of travel comparison site, travelsupermarket.com, found that 46 per cent of people were worried about their financial position and were prepared to trim their holiday budget.

Some 21 per cent of people have already decided they will definitely be making sacrifices. On average, they will reduce their annual travel spending by around £240, by cutting back on weekend breaks or treats while they are away.

Chris Nixon, the managing director of travelsupermarket.com, said: "These results have disturbing implications as far as the loss in revenue is concerned. I only hope many change their minds."

The company advises hard-up holidaymakers to consider travelling to destinations where the cost of living is relatively cheap, such as Turkey, Croatia and Bulgaria. Bargains are available for those prepared to travel off-peak and midweek, it says.