Jeremy Skidmore, Telegraph

Spain is expected to enjoy a boom in popularity this summer as British holidaymakers turn their back on its Mediterranean rivals.

Over the past three years, travel companies have reported a decline in bookings to Spain in favour of cheaper destinations such as Greece and Turkey. But that trend has now been reversed, with more Britons creating their own holidays in Spain using no-frills flights and accommodation booked over the internet.

In previous years, most visitors to Spain were families sticking to the familiar destinations of Majorca, Menorca, Costa Brava and Costa Blanca, but visitors are also now venturing further afield, to areas such as the Costa de la Luz and Costa Calida.

There has also been an increase in couples booking city breaks, with Seville, Madrid and Barcelona the most popular destinations. Manny Fontenla-Novoa, chief executive of Thomas Cook, said: "Spanish hoteliers have dropped prices and improved standards, which has made a big difference. And just about every no-frills carrier goes to Spain, which makes it easier for people to build their own holidays."

A spokesman for Thomson agreed: "People see Spain as a safe destination and are comfortable booking their own trips. There are now so many flights there that the prices are very competitive. " The latest statistics from the Civil Aviation Authority show that in the fourth quarter of 2005 three million Britons visited Spain, compared with 2.9 million in the same period the previous year. The number of holidaymakers heading to Spain this summer is expected to surpass the five million who visited in 2005.

Meanwhile, holidaymakers are likely to enjoy bargains to Turkey, Greece and Egypt due to a fall in popularity. Tourists have been put off by scares over bird flu in Turkey and bombs in Egypt.

"Sales to Turkey are around 28 per cent down," said Mr Fontenla-Novoa. "It has been hit by bird flu, but it has also dropped out of fashion, partly because it is no longer much cheaper than Spain. As for Egypt, there was a huge fall in bookings following the recent bombing in Dahab and I'm not sure the destination could withstand another act of terrorism. Companies will have to lower prices to encourage people back."