Households will spend over £100 less this Christmas than last as the economic slowdown sees customers restrict spending.

The average household spend on the festive season this year will be £483.47, a reduction of £108.53 on the figure for 2007.

The research, from Travelodge, found that the most common areas for cutting back will be presents and cards, food and drink, attending Christmas parties, entertaining family and friends, and buying new clothes or Christmas decorations.

It also found that 27% would pay for Christmas out of savings and 9% planned to cancel it altogether in a bid to cut costs.

"The credit crunch is certainly changing consumer's attitude and buying behaviour," said Mark Kemp, Travelodge reservations director. "The consumer trend is shifting towards a low-cost approach when shopping for goods and services."