More people booking holidays despite lack of faith in economy, figures show

Demand for holidays among UK consumers is growing despite plummeting faith in the economy, according to new research.

Confidence to book overseas trips is at the highest level in three years with the majority of people (54%) planning a holiday abroad in the next 12 months, a study found.

This is despite fewer than one in five (19%) expecting the economy to grow in the coming year, down from 33% in 2016.

Over a third (35%) of people do not expect their finances to improve over the same period, compared with 29% a year ago.

Some 5,293 UK adults were surveyed for the annual Holiday Confidence Index by First Rate Exchange Services.

The research revealed that 44% of those intending to travel overseas next year have already booked their first holiday, while 22% have even confirmed a second trip.

Meanwhile, the proportion who believe all-inclusive holidays are a good way of controlling costs has fallen from 53% last year to 47% in the latest analysis.

Liam Hodge, head of insight at First Rate Exchange Services, said: "It came as a surprise to find that significantly fewer holidaymakers believe an all-inclusive holiday will help them keep their costs down.

"However, we know from other research studies that holidaymakers often spend a lot more on top of their all-inclusive packages than they expected.

"If that has been their experience this summer, particularly with the weak pound raising the cost of any additional expenditure, then perceptions of the value associated with all-inclusive packages may have changed."