The mid-market will continue to feel the biggest squeeze next year, according to ABTA"s Travel Trends Report for 2012.
Instead, the budget and luxury markets will perform more strongly.
"2011 was a strong year for all inclusive holidays and demand for this type of holiday looks set to continue into 2012 as budget conscious holidaymakers favour the transparency and control all inclusive holidays provide over finances," said the report, published today.
"Resorts in Tunisia, along the Yucatan Peninsula in Mexico and around the Red Sea in Egypt are all likely to offer good value and high quality accommodation in 2012.
"The high end of the market looks set to perform well in 2012. At the luxury end of the market, there is a growing trend towards remote and discreet holidays.
"Globalisation and over commoditisation has led high end holidaymakers to seek out locations that are off the beaten track with a certain kudos attached to going to destinations that are less well trodden, such as Ethiopia, the Galapagos Islands and Antarctica."
The report said in uncertain economic times Brits will also put their faith in places they know well, with France, Italy, Greece, USA (Florida) and Spain set to sell particularly well.
"Early summer 2012 bookings for these destinations are all looking healthy, while numbers are slightly down in other destinations, such as Egypt and Tunisia," it said.
It said other destinations to watch next year include Poland and Ukraine, the hosts of the European football championships, Jordan, which is celebrating the 200th anniversary of the rediscovery of Petra, Iceland, as meteorologists predict a particularly spectacular year for the Aurelia Borealis, plus Cape Verde and Colombia.
ABTA chief executive Mark Tanzer said: "2011 has been a challenging year but the British public showed resilience when it came to their holidays and we expect a similar picture in 2012.
"The squeeze on household spending looks set to continue and this is likely to see holidaymakers become more discerning about where they spend their money and what they get for it."
by Bev Fearis
Wednesday, December 28, 2011