In a survey conducted by leading online travel agent On the Beach, 92% of British holidaymakers said they are still planning to take their hard earned holidays this summer despite the financial crisis. However, many said they will be cutting back on certain aspects of their holiday in order to reduce the total cost.

The survey asked over 1500 holidaymakers, which elements they would be cutting back on this year, with many opting for lower grade hotels, fewer days out and less activities.

Over a third of all respondents (36%) said they would be downgrading their hotel this year (i.e. 4* to 3*), with almost half of all those surveyed (49%) stating they would be cutting back on expensive excursions, water sports and theme parks.

Another big change from previous years sees almost a third of all respondents (32%) stating that whilst they would be taking their annual Summer holiday, it will be cut down from their normal two weeks in the sun to just one week. Whilst 58% said they would still be talking their normal two week holiday, with a minority (10%) saying they would be spending more time in sunnier climes.

The survey also asked holidaymakers if they would be spending their summer holiday in non-Euro destinations due to the poor exchange rate. Almost half of respondents (43%) said they would be sticking to their favourite European destinations with only a slight majority (57%) saying they would be heading to non-Euro countries.

With 47% of holidaymakers looking for all-inclusive holidays, and 39% saying they aim to spend less whilst in resort this year, spending money upfront is a good way of saving on the overall cost. Travellers are ensuring they know exactly how much their holiday will be in advance and keep additional spending money to a minimum. Interestingly, 14% said they aim to spend more in the resort.

In addition, 81% of those who normally hire a car will not be doing so this year and prefer to relax in their resort for their holiday.

Simon Cooper, Chief Executive at On the Beach said, “The stress and pressure of the credit crunch, means that now more than ever we all need time out to relax and unwind and it’s great to see consumers are taking a sensible approach to holidays, spending what they can afford and carefully managing their budgets.”

“By cutting out these extra activities and luxuries, holidaymakers are not only making savings, they have more time to chill out and enjoy the ultimate relaxing holiday.”