Brits will take three holidays a year in the UK on average in 20 year's time, the report states - meaning that people from the UK will take some 129 million holidays annually in their own country.
Expenditure will double to £31 billion from its current level at £16 billion - with the south-west the main beneficiary, as it receives a 33.6 billion boost, according to the study's forecasts.
"It's pleasing to see that the UK holiday is set for a major resurgence," Chris Price, business manager at Direct Line travel insurance commented.
"This is a beautiful country with dramatic coasts, idyllic countryside and vibrant cities. And we should remember that the UK has more World Heritage sites than the US.
"But no matter how familiar the surroundings, it is important to remember to take out travel insurance to protect yourself should things go wrong. Travel insurance is just as vital to have on a UK holiday to cover unforeseen circumstances such as cancellation of a trip or loss of personal possessions," he added.
Brits going on holiday this week have been warned that they will be hit with torrential downpours, just as schools break up for the summer.
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