Thomas Cook (TCG.L), Europe's second biggest travel firm, said UK bookings had slowed as cash-strapped Britons, grappling with the government's fiscal squeeze, sacrifice their annual two weeks in the sun.
"Cumulative (summer) bookings remain ahead in most markets, although the rate of booking intake has slowed noticeably in the UK as a result of continued economic uncertainty," the company said on Tuesday.
Thomas Cook said cumulative summer bookings in Britain were 1 percent ahead of last year, sharply down from growth of 6 percent when the group last updated the market.
British consumers have been increasingly unwilling to spend as muted earnings growth and higher inflation, fuelled by January's rise in VAT (sales tax) and hikes in oil and food prices, bite into real incomes.
They are also worried about job losses and welfare reductions related to government spending cuts, as well as the prospect of higher interest rates.
Historically Britons have been reluctant to give up their hard earned summer holiday even when they are cutting back in other areas.
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