Sterling�s weakness against the euro and the rising cost of living have directed Britons to cheap but exotic travel destinations
By James Hamilton

If the credit crunch has proved anything, it is Britons are pragmatists. As the economy has slowed we have swapped Waitrose for Lidl, the Hilton for the Travelodge and BMWs for bikes. Decadence has been exchanged for prudence.

But when it comes to holidays, we have done quite the opposite. Instead of staying at home and counting our coppers, more Britons have left their mounting fuel and food bills at home and travelled further afield than ever before.

The Association of British Travel Agents (Abta) reported that middle and long-haul travel have boomed in the past year, especially to the near east, while trips to Europe have remained static and even declined in areas such as Germany. Two hundred thousand more people travelled from the UK to Turkey, and an extra 100,000 visited Egypt this summer.

Leading tour company On The Go Travel recorded a 15% increase in travel to Egypt, Turkey and Russia this summer. Thomas Cook recorded similar figures, adding that bookings to Egypt this winter were up 25%.

Crucially, these destinations are outside the eurozone. Last week the pound hit its lowest point against the euro since the single currency was launched 10 years ago. A euro now costs 85p.

According to Abta, these recession-threatened times have ironically made us take holidays in even more exotic locations such as the near east - where the pound is strong against local currencies - that were previously seen as the preserve of the rich.

"Holidays are one of the last things that people will cut back on," said Frances Tuke, an Abta spokeswoman. "As time has gone on, flights have become cheaper and destinations have become more accessible. So now people regard travel as a necessity rather than a luxury.

"That certainly seems to be the case when you look at winter holidays, people are still holding on to them."

Bookings for snow sports holidays and destinations for people seeking winter sun are already 2% up on last year, according to Abta figures. Thomas Cook have recorded above-average bookings for next summer already.

"We have become much more adventurous travellers and are pushing boundaries," Tuke added. "And our members are expanding in their middle to long-haul areas. That is where they see the potential for growth."

On The Go Travel is one company benefiting from a strong euro. It doesn't organise trips to anywhere inside the eurozone.

Their guides in Egypt, Turkey, India, China and Russia have reported that a significant number of their customers chose their destination because of the weakness of the pound against the euro.

"From personal experience, I went on holiday to Greece and I was astonished how little money I got back for my pound - it was quite horrifying," said Pru Goudie, On The Go's marketing manager.

"So if you're taking a holiday in India, your money goes a long way. It certainly does in Egypt, it certainly does in Turkey, even in Russia. Russia is just relentless at the moment. Even with Moscow prices, our travellers dig out the places to eat that won't cost an arm and a leg."

The long-distance holiday is not the only growth area in a slowing economy. This week it was reported that the no-frills Beefeater and Brewers Fayre restaurants have experienced a 9% rise in business. Pub group JD Wetherspoon, which offers a burger, chips and a pint for £4.59, also reported a boost.

Halfords and Blacks Leisure both claimed a boom in camping equipment as people decide to exchange bed and breakfasts for canvas, while cheap but fashionable high street store H&M enjoyed a hike in sales.