Thousands of UK holiday home owners stand to benefit from the further increase in Air Passenger Duty from next April.
The announcement in the Autumn Statement marks the second time that APD has been raised in 12 months
Consumer research by domestic self-catering firm Blue Chip Holidays found that the likely outcome is an increase in domestic holidays.
The poll of 800 people found that almost 18% had been put off foreign travel in the last year due to APD rises.
A further 38% said that they had chosen UK self-catering holidays over overseas trips to save money.
Customers who choose not to holiday overseas next year intend to spend the money they save here in the UK.
A quarter of those polled said they would upgrade their accommodation while almost 24% said they would choose to use the money saved to truly treat themselves on their holiday in the UK.
Almost 30% said they would use any money saved to take an additional domestic break in the UK.
Blue Chip Holidays managing director Alan Taylor said: “The Chancellor’s announcement of a further hike in APD is clearly going to weigh on the minds of travellers, especially in these financially challenging times.
“Confronted with the possibility of hundreds of pounds being added to the cost of an overseas holiday, you can bet that travellers will think twice about the pound in their pocket and what value they can get for that here in the UK.”