UK spending on traditional package holidays increased by 6% last year, raising total revenues of £11 billion, according to a new study.
Market research company Market and Business Development has released its UK Tour Operators report for 2007, which shows growth in package holiday business beat the overall growth in total holiday revenues, which was up by 4% to £24.6 billion in 2007.
Market analyst Beth Ramsden said the rise, which saw package holidays account for 46% of the total holiday expenditure, was largely thanks to growing demand for long-haul trips.
She added: “We expect the levels of growth will be more muted in 2008, reflecting lower levels of consumer spending.”
Ramsden said this slowing of the economy will lead to only 2% growth of total holiday expenditure this year, although by 2012 she predicted £27.3 billion will be spent annually on holidays in the UK.