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Low deposits fuelling holiday surge

26 January 2009 11:20

Low deposits fuelling holiday surge

The number of people booking holidays in the sun this year has dramatically increased, thanks largely to holiday firms slashing the cost of deposits.

Reports claim people booking summer holidays only need to pay as little as £10 for their deposits, although the move is risky, according to competitors.

Rival firms claim the move could cause mass cancellations at a later date as people would not be worried about losing a small amount on their holiday.

Normally, deposits can vary from around £150 to £200 for a family of four heading on a typical holiday to Spain.

But Andy Washington of holiday firm Cosmos told the Sunday Mirror that bookings had gone up 40 per cent as a result.

He said: "Firms have always used deposits as a tool but a lot more are coming in as low as they can in response to fears about the economy."

Holidaymakers are also advised to make sure they have a travel insurance policy in place before they travel, to cover them should they be the ones caught out because of a late cancellation or other mishap.