Job security boosts holiday confidence

A greater sense of job security is leading to a rise in the number of people booking holidays abroad.

This was one of the positive findings of the latest Holiday Confidence Index from First Rate Exchange Services.

A change in attitudes towards overseas travel has pushed the index up two points to 51, the highest level since the first of four reports was published a year ago.

Well over half (57%) of all 5,017 adults questioned said they intend to take an overseas holiday in the coming 12 months, 3% more than at the same time a year ago and a 1% more than in the summer.

Almost one in 10 say they plan to take more holidays and over a third (37%) will take two trips abroad, compared with 34% in the summer and 35% a year ago.

While most holidaymakers are planning trips of the same length, slightly more people are considering longer ones.

There has also been a marked increase in those who intend to take shorter breaks of six nights or less, up to 26% from 22% in the summer and 24% a year ago.

The rises come as 31% of respondents said they expect the economy to continue to recover in the next 12 months and 41% are confident of job security.

This increases to 48% of those who are planning to holiday abroad in the coming year – underlining the importance that job security plays in shaping attitudes to overseas travel.

Alistair Rennie, First Rate Exchange Services head of innovation and insight, said: "Against a backdrop of low inflation, a growing economy and a definite sense that jobs are more secure, it is no wonder that Britons are feeling more confidence to plan holidays abroad in the coming year."

But in a note of caution, 24% of the survey respondents felt that rising interest rates would negatively affect their holiday plans.

Furthermore, consumers remain cautious when it comes to holiday budgets – with only marginal year-on-year increases on the amount they expect to spend on buying a holiday, while budgeting for travel money purchase in the UK and spending in destination remains flat.

"The winter Holiday Confidence Index provides clear evidence of wallet-watching when it comes to what people will budget and spend on their holidays," added Rennie.

"Coupled with the resolve to cut back on other expenditure in order to afford an overseas holiday, this suggests that while the brakes may be off to take that trip abroad, acceleration in spending on it is steady rather than rapid."

Meanwhile, the growth of online bookings continues and has risen 3% year-on-year to 77%.

Although 38% of holidaymakers prefer to book independently, more people overall are continuing to pick package holidays – 42% when traditional packages are combined with all-inclusive and cruise trips.

Holiday protection remains a priority too for 70% of holidaymakers, rising to over 75% of people aged 55 and over.

The Winter 2014 report can be obtained by emailing [email protected]