An annual analysis of bookings across the American Express travel offices' network highlights a number of developing trends in the British travel market.

Last year's leader, Australia, has slumped to fourth place, leaving the top three places dominated by US destinations. The only new entry, Thailand, won a place at the expense of St Lucia. Overall the Caribbean islands suffered a poor year, thanks to flight over-capacity and hurricanes and lost ground to the Indian Ocean resorts.

The US enjoyed its prevalence because of a combination of cheap flights and accessibility to a wide range of destinations, as demonstrated by increasing demand for fly-drive holidays to less-established destinations like Virginia, the Carolinas and Colorado.

The perception of value-for-money, and the strength of sterling, boosted the Far East but concerns have been raised over subsequent price rises by hotels and airlines. The figures also show a growth in demand for smaller destinations like Comores in the Indian Ocean and Zanzibar in Africa. Average expenditure on package holidays was estimated at £1,500 per person.

However, political unrest was again cited as the key issue in deterring long haul holidaymakers. Zimbabwe, Sri Lanka and Fiji all suffered a drop in bookings, although Egypt has made a solid recovery since the terrrorist attacks of 1997.

The report's most significant conclusion was that the package holiday is being superseded by tailor-made travel: 68 per cent of bookings were for independent travel components (flights, car hire and hotels) against 32 per cent for package holidays.

A new spirit of adventure prevailed; travellers who had previously visited Thailand were now booking trips to Vietnam.

The US remains the most popular destination for independent travel, but was closely followed by last year's line-up: Australia, the Far East, Canada and New Zealand.

All are seen as 'safe' for the mainstream market as well as backpackers.