Britons 'shun eurozone holidays'

By Louise Greenwood
Your Money Reporter

Eurozone destinations are being hit by the falling pound

New figures show the number of Britons booking holidays in the eurozone has fallen heavily on this time last year.

Figures from the Association of British Travel Agents shows bookings to the eurozone are down 15% on a year ago.

Meanwhile, market research group GFK Ascent MI also says sales of holidays overall are down 12% on a year ago.

However, the travel industry warns would-be holidaymakers that making a last-minute booking will not mean a big discount this summer.

The impact of the recession on family budgets has been blamed for the fall in eurozone bookings, along with the falling value of the pound to the euro.

The eurozone refers to the 16 countries which have adopted the euro as their currency, and includes such popular summer holiday destinations for Britons as Spain, Portugal and Greece.

Extra value

Across the industry travel agents, hoteliers and tour operators admit they are having to offer enticements to encourage bookings.

Andy Rowden, from the independent travel agents Kitts Travel in Pinner, Middlesex, says the pressure is on to provide extra value.

"A lot of the hotels are offering a night free if you stay seven nights - or offering complimentary half board, your breakfast and evening dinner - just to try and compensate for people maybe not having so much money in their pocket."

But, for those hoping to grab a bargain by holding out late, there has been a clear warning from the industry that they may have already missed out.

'Expensive way'

The two big tour operators - TUI and Thomas Cook - have cut capacity by 26% over the past two years, rather than be forced into selling discount breaks at a loss.

"We have been trying for a number of years to get the message across to people that if they want a cheap deal they must book early in January or February - and to be fair a lot of people have taken that on board and done so," says Abta spokesman Sean Tipton.

"But leaving it late in the day is the most expensive way to do it."

However, with the start of the year described as "dire" by Mr Rowden, the travel industry is hoping for a flurry of last minute bookings to turn a profit in what is proving to be one of its most difficult summers in years.