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British consumers’ increasing economic confidence is translating into holiday bookings.
The latest Holiday Confidence Index, published this week by exchange service First Rate, shows a two-point rise, to 44%, on the last index last September.
The index, launched in 2013 and published three times a year, is based on a survey of 5,000-plus UK adults. First Rate uses the results to produce indices on consumer holiday intentions, frequency, duration and spending and, from these, an overall Confidence Index.
The survey in February found the number of consumers intending to take an overseas holiday in the next 12 months had risen by three percentage points on September to 57%. More than half (51%) had already booked a foreign holiday and 30% had a second trip abroad booked. The proportion planning a single trip abroad was up from 44% to 46%, reflecting a return to the market by some who didn’t have a holiday last year.
Alistair Rennie, First Rate’s head of business decisions, said: “This is by far the most optimistic of the surveys we’ve done. We’ve reached a point where we’re starting to see consumer confidence feed into the market.”
The survey suggests the storms at the start of the year had an impact, with 46% saying they were more likely to head abroad as a result. The effect was strongest among 35 to 44-year-olds, the age group most likely to travel as families, with 51% saying they would go abroad “because of the weather”.
Fewer holidaymakers appear to be taking exchange rates into account, down from 40% in September to 36%. This could reflect the rising value of the pound, although Rennie said: “I suspect a good proportion of holidaymakers don’t do the maths on exchange rates.”
The survey also found consumers more ready to buy cash in their destination, up from 8% to 10%, which surprised Rennie who said: “You get better value if you purchase currency before you go.”
A further Holiday Confidence Index will be published ahead of the summer peak. To request a copy, email: holidayconfidenceindex@firstrate.co.uk.