The Confederation of British Industries (CBI) has suggested that British consumers are still keen to get away despite constraints on their spending.
In a gloomy services sector report published by the CBI, the travel industry was the only found area to be performing strongly.
"Travel companies reported healthy demand for holidays in the past three months, with people more inclined to take a well-earned break as rising costs put greater demands on household spending," said CBI chief economic adviser Ian McCafferty.
However, he added that the rising costs of fuel meant that profitability for many companies in the travel industry had fallen dramatically.
In its report, the CBI also found that in addition to falling levels of profit, the number of people in employment in the services industries had fallen for the second quarter in a row.
Companies were also said to be negative about the prospects of expansion in the coming months.
InsureandGo offers a range of
travel insurance packages to provide flexible protection for those planning a trip abroad.