Scottish tourism is experiencing a half-term boom as hard-pushed families forgo trips to overseas destinations in favour of short breaks at home.

Fears of being left stranded by struggling airlines and the increasing pressure on family finances have led to a large rise in the number of bookings for self-catering cottages north of the border.

The Association of Scotland's Self Caterers said many of its members are having to turn people away, following a sharp rise in booking inquiries.

'Our members had a cracking summer and the half-term holidays look like being packed as well,' said Jennifer Moffat, secretary of the ASSC and owner of Airdeny Chalets in Argyll. 'A lot of self-catering businesses are already reporting a rise in their takings from last year, despite the fact that fewer people are booking in advance or staying as long. We are tending to get more people who take shorter breaks - three nights is fairly typical - and make late bookings.'

Sharon Makepeace, a spokeswoman for VisitScotland.org, said: 'In the light of the current economic climate, we anticipate more people will be looking to holiday closer to home over the October holidays. Over the summer period the self-catering sector fared particularly well and this trend looks set to continue. The rise in costs for fuel and food, coupled with the strength of the euro means people are retaining their holiday plans, but altering their destination choice and choosing Scotland.'

According to holiday travel group Hoseasons, there has been an almost 50 per cent growth in demand for domestic short breaks in the last couple of weeks.

In addition, Premier Cottages, a co-operative of more than 200 luxury self-catering cottages across the country, claims that in the run-up to the school holidays, which start this week for many families, a large number of their members were reporting a flood of late bookings. 'Our members are generally very busy at the half-term. We haven't had to endure the expected downturns in business that some of the other operators have had,' said Stuart Diplock, Premier's marketing director.

'People are now saying that, if we are going on holiday in the UK, then we want to have the same sort of quality we would expect abroad. They want good value for money, so the quality end is starting to make a difference.'

Auchendennan Cottages, by Loch Lomond, is typical of the new breed of accommodation providers attracting visitors. Complete with family sauna, hot-tub, flat-screen plasma televisions, lavish kitchens and luxury furniture, Auchendennan aims to provide all the comforts of a five-star resort for less than the price of a bed and breakfast.

'In the past week we've had bookings from a family in Glasgow, just 22 miles away, one from Colchester, and a big group looking for somewhere to meet between their respective homes in Aberdeen and Brighton,' said David McCowan, who runs the site. 'Self-catering used to be seen as a poor man's holiday, but not any more.'