Caravan park group Parkdean Holidays said it was cashing in on a sharp rise in the number of people taking short-breaks in the UK.

Chairman Graham Wilson said market demand was currently as buoyant "as I can remember in my 20 years in the business".

Pre-tax profits surged 97 per cent to £3.4m in the 12 months to October 31, helped by the acquisition of the Ruda park near Barnstaple.

But Mr Wilson said holidaymakers now had higher levels of disposable income and were taking more UK breaks alongside traditional foreign trips.

The advent of the minimum wage also meant more people were beginning to go away for their holidays for the first time, he said.

Turnover climbed to £43.7m from £29.6m in the recent financial year and advance bookings for this year are ten per cent up on a year ago.

Newcastle-based Park-dean floated on the Alternative Investment Market last May and runs 12 holiday parks across the South-West of England, Scotland and Wales.

Its success is in stark contrast to the fortunes of the major package tour operators, who have suffered a torrid past 12 months.

The fall-out from September 11 has hit the major players hard and left the former Airtours group, MyTravel, fighting for survival.

A Consumers Association report added that holidaymakers were beginning to opt for the customer service of smaller independent firms.

Mr Wilson said: "If you want to keep your customer you not only have to have control over selling your holiday but the execution as well."