Britons spent 41 per cent more on holidays last year than they did in 2002, according to new research.
A study by Mintel found that just under £8 billion was spent by British consumers going abroad last year.
According to the British Lifestyles 2007 study, long-haul flights were the fastest growing area of travel last year.
The rise in both overseas and domestic holiday spend has taken place despite rising interest rates and higher fuel costs, which should have had the opposite effect.
Neil Mason, senior retail analyst at Mintel, said: "The clear message is that it takes a lot to dampen down consumer confidence, as last year Brits continued to spend, spend, spend.
"Rising disposable income has led to higher expectations about the quality of life, and as a result we are increasingly trading up and spending more on better quality, premium products and services."
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