Prices up as we make a late rush to the sun

With the rain predicted to continue until September, holidaymakers are making last-minute reservations for trips to the Mediterranean.

But the sudden surge in bookings has meant prices are rising.

Before last month's bad weather, travel experts had predicted that this year would be the first where environmental concerns would encourage people to holiday in Britain, and as a result prices were down.

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In stark contrast to scenes here in the UK, Greece and much of south-east Europe is braced for the hottest day of the year with temperatures expected to top 46 degrees in some places.

The heatwave sweeping Europe has already claimed hundreds of lives over the past two weeks.

In June a survey for Co-op Travel and Travelcare found holidays offered for this summer were 10 per cent cheaper than last year.

But now travel agents say bookings are at least 100 per cent up on last year and popular destinations such as Majorca and Ibiza are reported to be virtually full.

Matthew Flint, sales director at Croydon-based Direct Line Holidays, said: "Last week we were 124 per cent up on last year.

"Very rarely have we ever known the weather to have such a direct effect on holiday bookings but in my 41 years this is the first time I have known a summer like this."

Prices for holidays taken in July and August were significantly up last week in comparison to the average selling price in May, according to Travelcare.

In May the average price per person to Palma in Majorca was £395. Last week it was £458.

A holiday to Dalaman in Turkey would have cost £329 in May, but last week was selling for £373.

A family of four would be paying £252 more if they had booked their holiday to Palma last week instead of in May.

Hotels in the Balearics also said they were seeing a huge surge in late bookings. Across the island chain, hotels were 80 per cent booked last month, well up on last year, and are likely to be even busier this month.

Gatwick Airport said it expected its busiest period of the year next weekend, with the busiest day of all due to be Sunday, when an estimated 137,000 travellers will pass through its terminals.

Top destinations include Palma, Malaga in southern Spain, Dalaman, and Faro in Portugal.

Bookings are also strong for long-haul trips, with tour operator First Choice saying it had "minimal availability" on any destination for beyond the coming week.

BA reported high demand for bookings on its southern European routes.

The Association of British Travel Agents said overall bookings would be up by at least 7 per cent on last year.

A spokesman said: "April was so warm that everyone expected summer to be a scorcher and a lot of people decided not to go abroad. Now they are all rushing to book."