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CM you're missing out a lot there, if you just think fuel cost and exchange rate.
Especially the fact that there are still cheap package holidays that families can get to the costas. What many families on a tighter budget do is travel during term time, taking their kids out of school to go away for a week or 2.
Yes I was simplifying it slightly, but then again these are some of the main considerations of low income families, especially when they risk prosecution if they take their kids out of school for holidays.
There are indeed still cheap package holidays still to be had, but as we saw last year, some of the operators at that end of the market are finding times hard - Zoom, XL and SilverJet went bust, Easyjet saw profits nosedive 45%, and RyanAir made a loss for the first time .... to name but a few.
With belts tightening will 2009 see more holiday companies and airlines go out of business? Especially as Opec want to see oil prices rise again!