Far-flung destinations more affordable

While most Britons holiday in Europe, the Royal Bank of Scotland has pointed out that travelling further afield could see holidaymakers save money.

Recent exchange-rate trends have seen Europe become more expensive, while giving UK residents more cash for their currency in places like Mauritius, Indonesia and Hong Kong.

"Over the last twelve months fluctuations in currency rates means that holiday makers could receive more for their pound by travelling further afield. While some rates have fallen over the year, many long haul destinations still offer great, or improved, value for money," said Douglas Gowan, head of travel money for the Royal Bank of Scotland.

"So, whilst the UK traveller may have less spending power with their pound in some popular destinations, more distant shores may provide a cost effective change of scenery," he added.

Since last year the pound has dropped in value against the euro, making Europe three per cent more expensive for British tourists, while in Mauritius and Indonesia a pound will buy you over ten per cent more than 12 months ago.

Travellers to Jamaica, Hong Kong and Trinidad & Tobago will also receive more bang for their buck - but sterling has been out-performed by many nearby holiday favourites.

In addition to the eurozone, currencies in the Czech Republic, Hungary, and Poland have also strengthened against the pound, Royal Bank of Scotland warns.

But there is good news for people planning to hop across The Pond and indulge in a bit of shopping in New York: the dollar's four-year decline against the pound continued last year, seeing the pound buy three per cent more dollars than at the same time last year.