Budget airlines to hit package holidays

The growth of no-frills airlines is likely to lead to a dip in the number of package holidays taken in 2004, it was revealed today.

Packages could fall by 1-2%, while independent holidays could grow by 5% thanks to the low-fare carriers, the Association of British Travel Agents (Abta) said.

Short city breaks should continue to be popular and the long-haul market should bounce back having been hit by the SARS outbreak in 2003, Abta added.

The association’s views came in a series of forecasts for 2004 compiled by UK tourism organisation VisitBritain.