More Brits are expected to stay home rather than travel abroad this year due to the financial crisis.

According to research conducted by Defaqto, there seems to be a rising trend in the number holidaymakers opting for single trip travel insurance instead of annual insurance as more Brits consider staying in the UK.

The financial research firm stated that the reduction in the value of the pound could mean that more UK consumers will be opting to stay within the UK visiting friends and family rather than travelling abroad.

Head of insight, Brian Brown of Defaqto said: “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.

For most customers taking just one overseas trip a year will mean that purchasing a single trip policy makes more sense.”

The firm, which described the UK based holidays as “staycations,” predicted that “customers will not purchase annual travel cover for the time being. Certainly as policies lapse they will be less likely to be automatically renewed."

However, research from UK travel association, ABTA, stated that an estimation of 1.8 million Brits intended to travel abroad during the bank holiday weekend.