Bargain holidays gain popularity in economic slowdown

An unexpected boom is being seen in the coach holiday business, in hostel accommodations and cheaper holiday destinations, as UK travellers begin to realign their holiday plans with economic realities.

The coach-based winter holidays firm, Skiweekends.com, reported last week that bookings for the coming winter season have increased by 150 per cent over that of last year. The operator has increased its capacity by 40 per cent, and will be running coach trips to two new destinations, the ski resorts of Chamonix and Zermatt. The firm’s managing director, Daniel Fox, commented that the company is having the best season in its history. Prices for the holiday packages start from £179 for three days at the weekend, and £239 for a full week

Hostels are reporting a similar boom in business. Hostelbookers.com has noted that bookings are up 83 per cent over last year. The Post Office reports is indicating that foreign currency sales are up, as well, with the sale of Egyptian pound up by 50 per cent in September.

At the top end of the market, the economic downturn is already showing an impact. British Airways has reported a decline of 8.6 per cent in the number of premium-class passengers carried last month, as compared with September of 2007. Ryanair, the Irish low-cost carrier, reported an increase of 20 per cent in its passenger traffic for the same month.

According to an analyst for travel and leisure at investment bank Collins Stewart, Andrew Fitchie, regardless of economic conditions, Brits will find a way to keep taking their main holiday, but may well cut a second holiday and shorter breaks.

www.collins-stewart.com