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Britons choose staycations in new headache for tour operators - study

Published 23/05/2019, 00:27
Updated 23/05/2019, 00:27
© Reuters. A resident relaxes in a swimming pool at The Thatchers Holiday Village in Modbury

© Reuters. A resident relaxes in a swimming pool at The Thatchers Holiday Village in Modbury

LONDON (Reuters) - More Britons will opt for staycations this year over heading for trips abroad, a study by Barclays (LON:BARC) showed on Thursday, in a possible new blow for struggling tour operators.

A survey of 2,006 domestic tourists found that 31% said they were likely to spend more time on holiday in the UK this year, compared to just 8% who said they would spend less time.

Thomas Cook issued its third profit warning in less than a year last week, saying weak demand had led to increased promotional activity and earlier discounting than usual.

It has struggled to recover from a disastrous summer last year when a heatwave in northern Europe - including Britain - dissuaded would-be travellers from booking lucrative last-minute deals, with many Britons instead opting to enjoy the sun while staying closer to home.

Thomas Cook and airlines such as easyJet (LON:EZJ) have said that uncertainty around Britain's decision to leave the European Union has contributed to a tougher environment.

The Barclays survey said that 18% cited concern over the impact that Brexit could have on foreign travel and family finances when opting for a staycation.

However, the main reasons for staycations were convenience, at 34%, and nostalgia, with 21% saying they wanted to visit places they have been before.

Over half of businesses surveyed also said that they had seen an increase in domestic tourism since 2017.

© Reuters. A resident relaxes in a swimming pool at The Thatchers Holiday Village in Modbury

Out of 528 UK hospitality and leisure businesses, 55% had seen an increase in demand, while two in five said that bookings were being made further in advance.

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