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Ray of sunshine for holiday sector

04 November 2013 09:22

The overseas holiday market is showing signs of improvement

The overseas holiday market is showing signs of improvement

The holiday market has been buoyed on the back of rising consumer confidence, a new survey suggests.

In March this year, 13% believed the economy was about to improve, while today that figure stands at 26%, polls by foreign currency company First Rate Exchange Services show.

At the same time, the number of those who thought the economy would not get better has dropped from more than half to 30%.

A survey of 5,194 people revealed that 40% of those with intentions to get away had now committed to a holiday with a booking, and around a fifth have booked a second trip. This proportion of people would be well advised to look into travel insurance to cover any unexpected mishaps before or during their break.

More than 50% of the would-be holidaymakers expect to travel overseas next year, with a fifth of bookings made for the summer period.

The data, conducted by First Rate in association with the Institute of Travel & Tourism, the University of Wolverhampton and YouGov, showed just 14% are planning to cut their holidays abroad, compared with 18% in March.

First Rate Exchange Services business decisions head Alistair Rennie said: "The new index reveals a growing stability for the overseas holiday market."

However, households still remain cautious, with more than half of those questioned admitting to not wanting their holiday spend to go above that of 2012.

Mr Rennie added: "Given the relative optimism about economic recovery expressed by respondents, there is good reason to be cautiously positive about the outlook for the coming year."

Nine in 10 have settled on a destination, with the eurozone proving a popular choice, and of those not planning a getaway; 13% blame a lack of time, while 74% said that a holiday comes lower down in their financial priorities.