May is looking to be a great month for booking cheap last-minute holiday deals, agents and operators have confirmed.

Prices for short-haul breaks in May are dropping in the six week run-up to the Queen’s Diamond Jubilee celebrations and booking now should secure the best bargain.

Although you do run the risk of the holiday selling out, it’s been shown that the ‘grab-and-go’ method will probably work out as the cheapest option. And flights are available from most major UK airports, such as Heathrow and Luton.

Mark Atwell, managing director at Dealchecker, said: “In this market, booking at short notice will usually secure the best deal.

“To be exact – you’ll get the cheapest price on a package holiday if you can hold off booking until one month before.”

For example, if you’ve booked a seven-night break to Spain in May around five months ago it would cost on average £300, whereas if you book it now, it’s available for £200.

This actually comes as a surprise with many not expecting the bigger companies to drop their prices.

Maria Whiteman, chief executive at Directline Holidays, said: “I didn’t expect short-haul prices to drop in May because most operators – especially Thomas Cook – dramatically slashed capacity in expectation of a tough year.

“In fact, there are some amazing prices in May, some made possible by bedbanks working with local carriers offering cheap flights.”

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Despite the country’s purse strings remaining tight, UK holidaymakers are planning on spending a record amount on their trips abroad this year.

The average tourist will spend £3,890 on overseas breaks in 2012, with Spain being the the most popular destination, taking in £1.8 billion from UK holidaymakers.

The country, which includes the Balearic Islands in the Mediterranean Sea and the Canary Islands in the Atlantic Ocean, is a popular choice for Britons due to its sandy beaches, top temperatures andshort flight times from airports such as Heathrow and Stansted.

The Visa Europe Travel Report added that other top spots for breaks for Britons were France, the USA, Italy and Australia – however a new trend is also arising.

Remote destinations are becoming increasingly popular, according to the report, with more people eager to visit St Helena, in the South Pacific Ocean, Comoros in the Indian Ocean and Guinea in West Africa. These destinations have shown the biggest year on year increase in expenditure.

Despite the increasingly tough economic climate, British holidaymakers still spent a record £12.4 billion on their visits overseas, which was a 2% rise from the previous year.

This all-time high amount of spending was due to 137 million holiday transactions made by Britons last year, ranging from their initial trip booking, eating and drinking out when on holiday to airport transfers.

A new airline connecting Iceland’s main airport at Keflavik with 12 destinations in the UK, Germany, France, Denmark, Poland, Spain and Switzerland is to be launched in June.

WOW Air has already unveiled its aircraft and is currently hiring cabin crew, for which it said it received a large number of applications.

The Icelandic airline will operate two Airbus A320s, which seat up to 168 passengers and are to fly from Stansted Airport to Keflavik three times a week. Prices for a one-way ticket start from £68 and include 20kg of baggage allowance per passenger.

Gudmundur Arnar, chief marketing officer at WOW Air, said the airline had already seen a high demand for the service from London.

He said: “We are a new and fresh business and will focus on passenger comfort. We believe customers will feel it is a fun experience travelling with us, while also enjoying low fares to one of the world’s most fascinating destinations.”

Iceland has become increasingly popular among Britons, with its tourism industry noting a 12% rise in UK visitor numbers last year. The figure surged by 53.7% in January as UK tourists rushed to the remote island to witness the best Northern Lights display in five decades.

WOW Air will also fly to Copenhagen, Warsaw, Krakow, Berlin, Stuttgart, Cologne, Zurich, Basel, Paris, Lyon and Alicante.

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Falling car hire and villa rental prices across Europe could convince more people to opt for self-catering holidays, a survey has suggested.

It is thought that because it can now cost up to 40% less to rent a car in some European destinations than it did two years ago, an increasing number of people will opt for self-catering holidays rather than expensive hotel breaks.

A study by TravelSupermarket revealed that car hire rates across popular European holiday destinations such as Malaga, Alicante, Murcia, Palma, Tenerife and Faro have fallen considerably since 2010, with bargains to be had this Easter, Whit week and in August.

Holidaymakers can save up to 26% on car hire during Whit week across eight European destinations, while prices have fallen by 34% in Spain since 2010. In Malaga, for example, it costs £63.89 to rent a small car for eight days, which equates to less than £8 per day.

Self-catering holidays in Greece could become considerably cheaper as villa rental prices could fall by as much as 20%.

Holidaymakers can save even more money by leaving the car at home prior to departure and taking a bus to the airport, before hiring a car when they get to their destination.

Experts say that prices have fallen considerably because people are booking their holidays later than usual to get the best deals and because of economic uncertainty in eurozone countries such as Spain, Portugal and Italy.

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People who want to escape the miserable UK winter weather without breaking the bank might want to consider holidays to Spain or Sri Lanka, Post Office Travel Money suggests.

It discovered that holiday spending money went further in these countries, with a basket of holiday items costing less than £28 in Sri Lanka and £38 in Costa del Sol. The same items cost as much as £113 in Barbados and £115.69 in Brisbane.

Holidaymakers could make further savings by taking the bus to the airport, which would ensure that they do not have to fork out for for long-stay parking for the duration of their trip.

Spain and Sri Lanka were not the only destinations where a holidaymaker’s money went that little bit further. It cost just £39.57 to buy the eight items in Prague, while they would set a holidaymaker back £39.65 in Bulgaria, £44.03 in Cancun, Mexico, and £45.57 in Budapest.

At the other end of the spectrum, the items would cost £113.03 in Singapore, £108.29 in Auckland and £108.07 in Costa Rica.

Post Office Travel Money went on to reveal that these items were 40% cheaper on the Costa del Sol than they had been five years ago, which is partially to do with the fact that sterling has strengthened against many major currencies over the last 12 months.

However, Cyprus was the only eurozone destination where prices have fallen despite the fact that the pound has strengthened against the euro of late. Turkey, meanwhile, is now 60% more expensive than Spain despite traditionally being one of the cheapest holiday destinations in Europe.

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Beleaguered eurozone countries with struggling economies are likely to benefit from the high numbers of British tourists this year, a survey has shown.

Flights are likely to embark from Stansted, Luton and Heathrow airports for destinations such as Spain, where 11% of Britons will spend their holidays this year, and Italy and Portugal, to where 3% and 2% of British tourists will travel respectively.

However, the research from TravelSupermarket shows that there has not been a sharp rise in the number of visitors from the UK to North African countries following the Arab Spring in 2011. And this trend looks set to continue throughout this year, as most Britons remain reluctant to take a holiday to the potentially volatile region.

Of the 5,000 British adults questioned in the poll, just 2% went to Egypt in 2011. This drops to just 1% when respondents were asked whether they would be going there in 2012. Holidays to places like Morocco, Tunisia and Turkey taken by Britons are also set to decrease over the next 12 months.

Other destinations around the world are likely to benefit from the drop off of UK visitors to North Africa, such as Sri Lanka, Mexico, Malaysia and Argentina. Meanwhile, 30% of Britons are planning a domestic holiday this year, compared with 40% who holidayed at home in 2011.

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Spain is the most popular family-friendly holiday destination among Britons, according to a survey compiled by travel organisation Abta.

Britons aged between 35 and 44 named Spain as their favourite family-friendly holiday destination, and with the availability of cheap flights from UK airports including Heathrow, Gatwick, Stansted and Luton, it is not hard to see why.

The UK, which finished in second place, was particularly popular with tourists aged over 55, while America took bronze, thanks largely to its theme parks and hospitality.

France and Greece rounded off the top five, finishing fourth and fifth respectively.

The results of the survey were revealed at the annual Abta convention in Palma, Majorca, in Spain – to the great delight of the locals no doubt.

Mark Tanzer, Abta chief executive, said: “For many years Spain has been our favourite overseas holiday spot. One of the main reasons for this has been the amazing welcome and facilities that Spain and its people offer to families.”

Ignacio Vasallo, Spanish Tourist Office director, added: “We are delighted to see that even in tough times families continue to see Spain as their preferred holiday destination.”

Italy, meanwhile, missed out on a place in the top five and had to settle for sixth place, while Turkey was seventh, pipping neighbours Cyprus in eighth, while Portugal and Australia rounded off the top 10.

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Nearly half a million people will be flying out of Gatwick, Stansted and Luton this weekend, a survey has revealed.

The poll carried out by travel organisation Abta found some 1.8 million people overall expect to fly out of the UK over the bank holiday, with Spain and its islands being the top destination.

Around a quarter of a million people are expected to be flying from Gatwick, with 125,000 leaving Stansted and 70,000 jetting out of Luton.

Other popular destinations with sun-seeking Britons are Portugal, Turkey, Tunisia and Egypt along with the Greek islands.

Meanwhile, the main city break spots are New York, Paris, Dublin, Amsterdam and Rome.

It comes as road safety charity Brake and insurers Direct Line warned drivers of bank holiday traffic after a poll found some 71% of motorists had been distracted while at the wheel in the last 12 months, with inconsiderate road users being one of the main reasons for their lack of concentration.

Brake senior campaigns officer Ellen Booth said: “All too often these casualties result from careless errors that could easily be avoided if drivers gave their full attention to the road. If you are so upset or angry that you can’t give driving your full attention, you need to pull over and cool off.”

With the roads expected to be busier than normal, drivers have been warned to take care getting to the airports and may want to consider getting an airport transfer for a safe and stress-free start to their bank holiday break.

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Britons will be better off financially if they spend Easter in Benidorm or Bulgaria instead of Brighton, according to research.

Post Office Travel Money listed Spain as offering the best value-for-money for 10 typical holiday items in a table of 14 popular destinations. 

Although the items, including suncream, beer and cigarettes, cost £42.15 in Spain they were priced at £77.01 in Brighton and £92.81 in Miami, Florida, which was the most expensive destination. 

Tourists looking to make the most of their Easter break while still saving money might also want to explore using airport transfers. 

As well as alleviating the stresses of driving, travelling by bus will also remove the additional cost of petrol and parking at the airport.

The second cheapest location was Bulgaria, where the items cost £43.50. 

For some destinations the cost of the items had seen noticeable increase compared to last year, with Brighton up by 10%. 

Having a three course evening meal in the Sussex resort is now expected to cost around £45.30, compared with £23.58 in Spain. 

Corfu in Greece was 10% less than 2010, with the 10 items now costing £58.87. Turkey was down 13% to £79.58 while Egypt, although comparatively expensive at £78.30, was 12% lower than last year.

Post Office Travel Money head Sarah Munro said: “While Spain is undoubtedly best value overall, the healthy price fall in Greece means that this traditional favourite can once again be considered a good bet for wallet-watching holidaymakers.

“In fact, the eastern Med looks a good choice all ways round as prices have fallen significantly in Turkey after 2010’s sharp rises.

“A combination of the weaker Turkish lira and lower charges by Turkish restaurants and bars have brought prices back to the levels UK holidaymakers came to expect during the noughties.”

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Holidaymakers will be cutting back on their holiday spending this year, a new poll has found.

So-called “Tupperware Tourists” will be taking a packed lunch on trips out, foregoing a hotel for a tent and leaving souvenirs in the shops, research by Experian found.

One in four said they would be eating a packed lunch rather than eating out, while 12% said they would be snuggling up in a sleeping bag rather than a hotel bed.

Meanwhile two in five said they were going to cut down on excursions and 29% said they would not be buying trinkets for friends and relatives.

The survey was based on responses from 2,000 people in a category described by Experian as Middle Britain.

This group is made up of three types – those with “suburban mindsets”, career people with children and new homemakers.

Experian said there would be “Tupperware tourists, memento misers and tented travellers” this year.

Those going abroad plan to spend just under £1,250 on average on flights and accommodation, almost £900 less than last year.

Spain and France are the top two overseas destinations this year for Middle Britons, who will no doubt be flying from airports such as Stansted,  Luton or Gatwick.  But as many as 45% are planning a British beach break, with Devon, Brighton and Blackpool the top spots.

Two in three of those polled said they would be demanding better customer service and better value for money this year, with 82% reckoning value for money was the most important consideration when making holiday decisions.

Experian’s UK and Ireland marketing information services managing director Nigel Wilson said: “Our latest analysis sends a clear message to the travel industry, and brands as a whole, that Middle Britain’s modern consumers will be more demanding than ever before and want more for their hard-earned cash.”

:: According to Experian, Middle Britain represents around 13.1 million people with the term being based on various measures including income, age, car ownership, type of house, number of holidays, attitudes and behaviours.

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