International holidaymakers have not been put off by the recent terror alert, according to lastminute.com.
Queues have eased at airports
The company said late deals to the US were selling above average and business was brisk to the Mediterranean.
Travel director John Bevan said maybe passengers felt safer amid the tighter security measures at airports.
Visit Britain said it expected the recent revival of interest in holidays within the UK to continue over the Bank Holiday weekend.
Mr Bevan, the travel director of lastminute.com, said the company was doing good business, particularly in trips to New York.
"This could be because customers feel that with security measures at their maximum this is indeed the safest time to fly," he said.
But a combination of factors - not least security concerns - have helped to fuel a boom in home-grown holidays.
Environmental concerns over flying, the regeneration of traditional resorts and marketing campaigns aimed at British holidaymakers have contributed.
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The queues at airports in the past week showed that few were prepared to cancel a pre-booked trip abroad but the UK market remained strong, said Elliott Frisby of Visit Britain.
"England as a destination wasn't marketed within the UK before 2003. Now people are much more aware of what the countryside, coastline and cities have to offer."
The run of hot summers in recent years has also encouraged people to holiday at home, taking the chance that the weather would be good again, he said.
"People are generally now wondering if going away [abroad] is worth the hassle," said Mr Frisby, adding that a planned strike by Stansted airport check-in staff and baggage handlers would only contribute to this.
Nevertheless, recent Visit Britain figures showed that while 59% of families take domestic holidays, trips abroad were increasing at a faster rate.