Aldi, the discount supermarket chain that has won thousands of new shoppers from its rivals this year, is expanding into a new market - holidays.

The German-owned group plans to cash in on the credit crunch by launching Aldi Travel in January.

The business will sell city breaks, summer escapes and ski deals through partnerships with hotel groups across Europe and expects to attract as many as 250,000 customers a year.

Aldi's Austrian chain has been in the travel market since 2005 and is now the second biggest tour operator in the country.

Sarah Butler, Aldi group buying director, said: "We have been watching what has been going on with Austria with interest and we feel the time is now right to launch Aldi Travel in the UK.

"On the back of the credit crunch it's a fantastic opportunity for us."

Aldi's fortunes have been transformed in the past year as the credit crunch forces shoppers to search out bargains. Sales at the group's 400 discount supermarkets in October were 33 per cent higher than the same month last year. It claims to have won shoppers from every major rival including Tesco, J Sainsbury and Marks & Spencer.

Aldi Travel will sell holidays over a website, publicising six headline deals on in-store leaflets every fortnight. A city break at a 3 star hotel in Rome is expected to be available for around £30 per night.

Ms Butler said Aldi would be able to negotiate good prices because of the volume it can offer hotel companies struggling with the economic slowdown.

"Austria has set the benchmark, selling 250,000 holidays a year, and that's what we're out to match," Ms Butler said.

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