Holidaymakers will look further afield when booking flights abroad if the pound becomes weaker than the euro, Hoseasons has said.
Peter Joyner, a Hoseasons spokesman, said that Brits would be more likely to travel to a far-flung destination if the value of the euro against the pound continues to rise.
Mr Joyner said that people may be encouraged to travel within the UK because of a reluctance to spend money, something that could provide a boost to domestic cheap flights carriers.
According to Hoseasons, British package holiday companies are being forced to offer discounts after exchange rate movements had initially caused them to put their prices up by as much as 15 percent.
A recent trivago survey revealed that three-quarters (75 percent) of Brits planned to reduce their holiday budget in 2009.