Gina Davidson: Finding a hot deal in a cold economic climate

WITH the weather lurching around like a drunk uncle at a wedding – winter to spring and back again – it's no wonder thoughts of escape are beginning to surface.

As there are only four weeks until the school Easter holidays, the idea of spending some time in proper, red-blooded warm sunshine, not the lily-livered stuff forcing its puny way through the clouds here, is beginning to build momentum.

But with the euro currently strong against the pound, the uncertainty of the recession and, for some, a lack of any financial bonus this year, choosing just where to go and when to book has become even more important.

Then there's the whole uncertainty about whether your air carrier will be on strike or even in existence by the time you come to board . . .

"Things are changing every week in the travel industry," says Jimmy Martin, of Stockbridge-based Jimmy Martin travel. "And with the collapse of FlyGlobespan last year, we are seeing more people coming back to the travel agent to book their holidays rather than trying to do it themselves on the internet.

"They want to be sure that they're covered in case something happens, but also that they are getting the best holiday they can.

"All the internet can give you is a photograph of a hotel or resort, but a travel agent will be able to tell you whether a hotel is what it claims to be, how close it is to the beach . . . all the extra information that our experience gives a customer."

He adds: "As far as real deals go this year, then the best ones will mean flying from places like Newcastle and Manchester. Again because of FlyGlobespan's collapse there's no longer the chance to go direct from Edinburgh for three days to Mallorca or Palma.

"People with holiday homes abroad have been hit badly, but so have those who prefer shorter holidays. Now it's back to the way it was 10-to-15 years ago when you have to book seven or 14 nights.

"But being prepared to travel from England rather than Scotland will reduce the price. A holiday came in this week, an all-inclusive to Turkey for two adults, and a free child place, which was 1,000 cheaper to go from Newcastle than Glasgow. As always, the earlier you book, the cheaper it will be."

One of the key motivators for travel last year was the mass of cut-price holidays on offer as tour operators attempted to thwart the recession, allowing families to save hundreds of pounds. Travel industry experts predict this is likely to continue into 2010 as the so-called "Aldi Effect" begins to make a difference.

The UN's World Tourism Barometer certainly predicts the decline in international tourism is bottoming out. More than 75 per cent of Association of Independent Tour Operators members say they expect bookings to increase or remain on a level pegging this year and a survey by Travelzoo revealed 55 per cent of UK consumers questioned planned to travel more in 2010 than in 2009. Similarly in the mass market, the Thomson and First Choice Trends Report found that more than 80 per cent of people polled intended to take a 2010 holiday despite the economic climate.

So where to go that's not only a bargain in terms of travel costs, but will make your spending money go further? According to the Post Office's annual Holiday Costs Barometer, heading east is the best bet – although that's more former eastern bloc rather than Lower Largo. Hungary came in as the cheapest place to go overall, while Bulgaria's Sunny Beach was the lowest-priced beach resort last year – a trend which looks set to continue.

And while eyes in the travel business are on Turkey to see if it can consolidate its new position as the UK's top summer sun choice, there are plans afoot in the eurozone to reclaim the title.

Individual member countries have already resorted to discounting to redress the impact of the strong euro, but the fight is on to see how Spain, Greece and France, in particular, play their cards. The evidence suggests the fightback has already begun as prices are down in all seven eurozone countries surveyed for the Holiday Costs Barometer.

A 30 per cent year-on-year price drop for tourist commodities shows Spain means business – in sharp contrast to the almost 44 per cent price hike in Turkey, which has dropped 14 places in the costs table to 22nd position. In Portugal's Algarve, prices have also plummeted.

Sarah Munro, Post Office head of travel services, says: "The eurozone has taken a bashing, but our survey suggests tourist outlets in many resorts are taking dramatic steps to encourage tourists. UK tourists who shop carefully could find that they get more than expected for their money.

"Last year proved that consumers were increasingly canny in their choices, watching market movements, checking exchange rates and playing a waiting game for bargains.

"Research became the watchword. With the advent of Google Wave later this year, we expect social networking to play a more pivotal role in holiday choice – as a way for people to share experiences."

She also believes that more far-flung locations will be the choice of holidaymakers this year, with the World Cup in South Africa and the opening of the Wizarding World of Harry Potter™ in Florida, being major draws.

She adds: "One thing for people to bear in mind is to take enough currency. Although the average holiday money transaction has gone up seven per cent to 240, prices have risen more sharply and holidaymakers should take sufficient funds. The cost of changing money abroad – or worse still – using most credit or debit cards will pack an unpleasant punch when they return."