Backpackers hunting for cheap destinations could choose online travel insurance

Destinations should take account of the recession and remain as cost-effective as possible, said a spokesperson for comparison site Cheapflights.

Francesca Ecsery, global sales director of Cheapflights, said Thailand remained a popular choice for British holidaymakers.

The emergence of low-cost flights to Asia and the country's value for money accommodation ensure its continued appeal, she added.

Another location offering savings for travellers is Las Vegas, according to Ms Ecsery.

"Hotels are a bargain at the moment with top luxury resorts offering special rates with added value such as spa or food and beverage credits," she noted.

Recent research conducted by Cheapflights revealed the Turkish resort of Dalaman, had risen to second place in a list of most popular holiday spots, with an 18 per cent increase in consumer searches this year.

New York retained the top spot with an 11 per cent increase in interest.

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