Consumers are not cutting their holiday budget because of the weak pound, the latest statistics from the Post Office suggest.

When the pound slumped to its lowest ever rate against the euro in April, sales for the month rose 4.7% on the previous year.

Post Office head of travel Helen Warburton said: “Currency sales have remained remarkably resistent, suggesting that holidays are the last luxury to be dispensed with during the credit crunch.

“Year on year growth of nearly 5% is an encouraging signal.”

The euro-pound rate has stabilised over the last three weeks and is now around 15% down on the same period last year.

Sterling is down marginally against the US dollar compared with the sky high rates achived in 2007, but still remains buoyant, said Warburton.

“The impact of sterling’s ongoing strength against the dollar is helping to make many mid and long haul destinations – in particular Dubai and Caribbean Islands such as Jamaica, Barbados and St Lucia – a more enticing prospect,” she said.