Aldi, the budget supermarket that has risen to prominence during the credit crunch, is to break into travel.

The retailer has teamed up with On Holiday Group and Eurotours International to provide resort, city and ski accommodation for an online venture that will be launched in January.

A new website, alditravel.co.uk, will feature 150 of the best deals.

Six top deals will also be featured in fortnightly leaflets distributed through Aldi’s 440 shops in the UK. Consumers will be directed to book online.

The leaflets will include the hotel price with an indication of what the overall package will cost when bought online.

The new venture will have Abta bonding through On Holiday Group’s membership of the association.

In addition, it will offer the supplier failure cover recently launched by Rock Insurance. Aldi’s travel website has been developed by Click with Technology.

The move into travel is not a first for Aldi. It is already the number two travel retailer in Austria where its tie-up with Eurotours started five years ago and now sells 250,000 holidays a year.

On Holiday Group chief executive Steve Endacott was at WTM this week negotiating deals with hoteliers for the launch.

He said the reaction had been very positive, adding that the venture was bringing a whole new approach to product buying in the travel sector.

“We can create unique prices and unique deals. Our expectation is hoteliers will be banging our door down saying we have a gap to fill, please help me fill it.”

Aldi and the two suppliers will decide which deals they want to feature on the website and in the leaflet and, as with its grocery products, there will be a limited number.

Sarah Butler, Aldi buying group director, said: “We are taking our buying concept to holidays.

“We may only sell a lawn mower once a year, but when we sell it we want it to be the best product at the best price.

“It will be focused and everything we sell will be hand-selected by Aldi.”

Butler said the recent downturn had seen sales for Aldi increase by 26%.

“The credit crunch is upon us and people are realising there is no need to spend too much on a product.”

Endacott added: “Our focus will be on great value for money hotels and then we will also be negotiating with airlines to say what are the dates you need to push.”