17 June 2009

Florida bounces back as pound goes further

Florida and Egypt have emerged as late booking summer holiday favourites, according to new research.

The Co-operative Travel’s analysis of more than 380,000 holidays shows that bookings to Florida saw a 49% increase on last year at the beginning of June compared to an 8% drop at the start of May.

The US bookings surge has been prompted by the strengthening value of the pound against the dollar, according to the UK’s largest independent travel retailer.

The analysis shows that in the same period the pound rose in value against the dollar, from $1.48 to $1.65 (a rise of over 11%).

The same effect can also be seen in the eurozone, but with the pound rising only 4% in the same period, the agency chain believes a significant boom in bookings is still to come.

Bookings to Spain, the most popular destination for UK holidaymakers, were still down at the start of June by 11% year on year, but significantly less than the 18% shortfall at the start of May.

The research shows that Spain’s loss has been Egypt and Turkey’s gain, as tourists look for nearby destinations outside the eurozone.

Late bookings to Egypt are up 25% on 2008, while bookings to Turkey have remained the same despite tougher trading conditions.

Retail distribution director Trevor Davis said: "Understandably the holiday market is much more price sensitive than in recent years, but still this responsiveness to exchange rates is remarkable.

"If the pound continues to rally against foreign currencies, we believe this upward trend will continue."

The Spanish Tourist office has predicted that UK holidaymakers will be the first to return the country and help its ailing economy.

Augistin Garcia, head of promotions for the Spanish Tourist Office in the UK, agreed that the strength of the euro had contributed to Spain’s falling visitor numbers, but predicted that rising numbers of UK holidaymakers will herald its recovery.

"We have confidence in the lates market and Spain still has the ingredients which make it ideal for the UK," he said.