Last minute Holidays rise as Consumer Confidence Returns

More and more people are booking in last-minute holiday breaks at an increased pace compared to last year as consumer confidence and competitive pricing tempts more holidaymakers back into travel. Particularly in the U.K. and Germany.

Figures show that up to a remarkable 14% of holidays across the June 2010 period were booked only four weeks or less before the departure date, an increase from June 2009.

In the U.K. holidaymakers are eager to take advantage of the rising Pound value against the weakening Euro, with the prospect of travelling to mainland Europe being a more affordable choice then usual.

While in Germany, unemployment figures have continued to fall as the economy stabilizes, giving consumers a renewed confidence to make spontaneous purchases.

“People are anxious early in the year whether they will still have their job in summer to pay for a holiday trip,” said Klaus Kraenzle, an analyst at GSC Research in Dusseldorf.

“Early bookings are not part of many customers’ reality of life any more as the future has become less predictable,” Meyer said. The ash plume from Iceland’s Eyjafjallajökull volcano as well as riots in Greece and Thailand also put some vacationers off making bookings earlier in the year, she said.

The increase of online booking is also making it easier, faster, and cheaper to find the holiday best suited for consumers. Price comparison websites make it even easier to search for the best deals.

“To get the best deal, consumers are spending more time online and that’s reducing the time between booking and travel,” said Caroline Bremner, global travel and tourism manager at Euromonitor International in London.

“People are booking later than ever before,” said Nina Meyer, a spokeswoman for L’TUR Tourismus AG, Europe’s largest last-minute-travel organizer. L’TUR’s package-tour sales are ahead of last year and the company aims to sell 1 million journeys for the year, up from 2009’s record 832,000, which produced revenue of 360 million euros ($464 million), she said.

5vorFlug one of L’TUR’s competitors noted a jump of 60 percent in the first two weeks of July, compared with the previous year.

Whether following this trend of booking last minute holidays is something you should follow of course varies on a case by case basis. While you can get the odd cheap package deal at the last minute, for the independent traveler it is much better to book as far in advance as possible. Everything from flights to accommodation is always much cheaper the further in advance you book. That said, there really is nothing like a bit of spontaneity!