More people are self-packaging their holidays than ever before, according to Travelocity.co.uk.

Five times more people are packaging together their own holidays this year over 2005, the company says.

And travellers using budget airlines are spending the money saved on better accommodation, according to a new poll by the travel website.

Almost three-quarters (70%) of respondents to the Travelocity survey said they would be putting the cash towards a higher grade of accommodation, 12% would choose to upgrade their board basis and 8% would opt to add transfers.

Travellers want to make the most of their holiday with the majority (nine in ten people) saying they would rather treat themselves to a more luxurious break than spend the extra cash on pre-holiday shopping or in-resort entertainment.

Only 6% said they would use the cash for spending money in resort and just 4% would spend the money saved on clothes and accessories for their trip.

Travelocity.co,uk marketing manager Stuart Parish said: "We have seen a stark increase in customers packaging their own holidays for summer 2006 – up to five times the number of customers compared to last year – with many booking their flights and accommodation earlier in the season.

"Booking flights earlier gives you a better rate and wider choice of departure time and airport. It also means that you can spend more money on the rest of your holiday and have the opportunity to upgrade your accommodation or board basis without exceeding your holiday budget.

"People usually have a set budget on what they are willing to spend on flights and accommodation combined which is different to the one they are planning to spend on pre-holiday shopping or in-resort entertainment.

Top 5 things people spend their savings on:

1. Higher grade of accommodation (70%)
2. Upgrade board basis (12%)
3. Add transfers (8%)
4. Use in resort (6%)
5. Clothes and accessories for trip (4%)