However much you fancy an exotic break after all this cold weather, ice and snow, you will probably want to do it cheaply. In particular, because your income is likely to get squeezed if taxes and interest rates go up later in the year as expected.

In fact one in four people are looking to spend up to 50% less on their holidays this year. That doesn't necessarily mean another staycation. It looks like people are simply becoming more savvy: nearly half are going to shop around for the best holiday deals online this summer.

So how do you get the best deal?

Despite the coldest winter in decades, many people have resisted the temptation to splash out on a long sunny break and are holding out for better offers. Traditionally, Christmas is a busy time for holiday bookings when travel companies advertise early bird discount offers. However, this time 87% of people didn't book a break during the festive season, according to a survey conducted by IMRG and eDigitalResearch.

David Smith of IMRG explains: "This marks a shift in consumer purchasing behaviour as more people are swayed by better holiday deals online and are less likely to plan so far in advance. With retailers announcing bumper sales figures over the festive season, it is clear that people preferred to spend their money on instant gratification, as opposed to planning their sunny getaways." .

If you're not too fussed about where you're going you can hold out for dirt cheap last minute offers. Travel companies often get desperate and dump their leftover holidays on the market.

Otherwise, here's our pick of websites to book your summer holiday. Expedia, skyscanner.net, Kayak and Opodo are good for booking flights. Try Hotels.com, Expedia and Lastminute.com for hotels. And Aldi Travel, Lastminute.com and Teletext Holidays are good for package deals.

Check regularly for hotel promotions or other offers. Hotels.com has a 20-40% off sale at the moment, and Expedia has a ski holiday sale.