Travel to the United States has fallen sharply as Britons tighten their belts in response to the economic downturn and slide in the value of sterling.

Figures released yesterday by National Air Traffic Services (Nats) showed a drop of 10 per cent in the number of transatlantic flights last month compared with October 2007. Flights to all destinations were down by 5.6 per cent.

South Africa, Dubai and Thailand are taking over as the most popular destinations for longer-haul holidays as interest falls in cheap travel to the US.

Travel agents are reporting an increase in inquiries for countries outside the eurozone, particularly in Turkey, Egypt, Morocco and Tunisia, as holidaymakers try to escape the strong euro. The most popular deals offer full board and car hire.

Lee Hayhurst, spokesman for Travel Trade Gazette, said that the consumer impact had been worse in Britain than any other country in northern Europe. “People are looking for value and hedging their bets,” he said. “Industry chiefs believe that people will still end up travelling, but we think that cheap travel to the States is finished and this market will suffer.”

The travel industry is already preparing for an uncertain year in 2009 as consumer confidence in Britain has been shaken by the economic downturn.

Holidays in Britain are buoyant, however, with bookings up for seaside winter hotel breaks and self-catering holidays for next summer.

According to the Association of British Travel Agents, British holidaymakers want to pay in advance in sterling to avoid being stung by currency movements.

Tui Travel, which operates Thomson, First Choice and about 200 other brands, has already cut the number of winter holidays it has on offer by 28 per cent, and has reduced the number of packages for next summer by 16 per cent. Thomas Cook is nervous about consumer trends, but is confident that most households still regard holidays as a necessity, not a luxury. Both companies are to report their latest trading position to the City before the end of the month.

Kate Kenward, executive director of the Association of Independent Tour Operators, which represents 150 companies, said: “The forward-booking market is in slowdown as people are waiting to see how their budgets are before making financial commitments. But the overall picture is mixed. Specialist holidays such as skiing are holding up. The industry is also responding to situations and there will be lower prices.”

Trailfinders said that some exceptional deals were available. Qantas, for example, had for the past four days offered return flights to Sydney for £499 for anyone travelling next May or June. “I don’t think we’ve ever had a price like that from any airline, let alone one like Qantas,” a spokeswoman said.

Deals on ski holidays in North America have been cut dramatically. Richard Rice, the managing director of Ski Safari, said that hotels were offering an extra three nights free if people booked a week. A ten-night deal in Whistler, Canada, with free room upgrade was £1,299, a saving of about £500 on last year’s prices.

Ruth Evans, head of marketing at Cooperative Travel, which runs 400 high street outlets, said: “The doom-mongers are saying this downturn is going to last another year. We are hoping that the traditional January bonanza when families book their summer holidays will still happen.”

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