A new report claims that the amount of money being spent on holidays by British travellers will continue to rise over the next five years.

The report entitled “The UK Tour Operators Market Development” by Market and Business Development, a research company, predicts a rise of 15 per cent on holiday expenditure.

Holiday spending will exceed 28 million pounds by 2012.

The main growth area is set to be in custom holiday bookings, where travellers create their own accommodation and flight bundles, this type of holiday planning is mostly done on the internet.

In comparison, the spending on package holidays looks set to rise by only 3 per cent,

Despite their predictions for this large rise in holiday spending, Market and Business Development warn that the spending increases are relatively low compared to the highs of the last four years.

This period has seen a boom in internet travel bookings, coinciding with the proliferation of low cost flights and competitive price drops in accommodation in some of Europe’s most popular family holiday destinations.

The Office for National Statistics recently revealed that the number of UK residents travelling overseas rose by 1 per cent in the twelve months preceding July 2007.