Sunbathers chat on deckchairs in London's Green Park
Six million Brits have already chosen to take a holiday in the UK this year with a further 14 million planning one this summer.
The figures, based on interviews with 2,000 people, show just under one in five people are staying at home because foreign holidays are getting too expensive.
The drop in sterling has also made traditionally popular holiday destinations such as Spain pricier.
Another fifth are holidaying in the UK because of the good deals on offer.
Top 10 UK destinations
Of the six million Brits who've holidayed in this country so far this year more than two thirds said their UK break was affordable and within their budget.
People taking domestic holidays are also raving about their experiences, giving the industry another boost.
Almost all the people interviewed for the survey said they were satisfied with their British experience, with two thirds so pleased they were planning to take another break in the UK this year.
Bob Atkinson, travel expert at travelsupermarket.com said: "The ability to cut down on transport and accommodation costs as well as knowing the average price of a coffee, beer or restaurant meal is a budgeting blessing for UK holidaymakers at a time when people are watching their money.
"Understanding the language and culture of the UK is also a comforting factor for many travellers.
"It is great to see the UK travel industry is rising to the challenge.
"Whether you are going to join the 'staycation' crowd or still fancy an overseas trip there are still some great deals on offer heading into the last May long weekend and summer holidays."
All figures are taken from research carried out on behalf of travelsupermarket.com by Opinium in between 17 and 20 April 2009, among 2,013 adults residing in the UK.