A trend towards 'staycations' could see fewer people by annual trip travel insurance, according to Defaqto.
Britons will tend to stay at home rather than take a holiday abroad this year - and this trend will be reflected in the travel insurance policies they choose, it has been claimed.
According to financial research firm Defaqto, the recession and weak pound means that UK consumers "are more likely to take holidays at home rather than abroad", with many taking the opportunity to visit family and friends in Britain.
"The number of overseas trips is showing a decline for the first time in two decades with fewer trips to many of the usual destinations," explained the firm's head of insight, Brian Brown.
Defaqto has labelled these UK-based holidays "staycations" and Mr Brown believes that the choice of cover for a staycation will be single trip travel insurance, rather than annual trip cover.
"For most customers taking just one overseas trip a year will mean that purchasing a single trip policy makes more sense," he explained. "Customers will not purchase annual travel cover for the time being. Certainly as policies lapse they will be less likely to be automatically renewed."
Contrasting with the Defaqto research, UK travel association ABTA estimated that 1.8 million Britons planned to take a trip abroad during the bank holiday weekend.
