Holidaymakers flocking to Cuba and Greece are providing Thomas Cook with a shot in the arm, but the travel giant has warned that prices are likely to remain under pressure.
The 174-year-old firm said yesterday that winter holidays at its UK business were 92 per cent sold – up 9 per cent on last year – with Egypt reviving as a popular destination following a period of political unrest.
However, average selling prices are 2 per cent down on a year ago as the group has sold a higher number of seat-only flights, reflecting customer demand for more flexible holidays. The tour operator said its UK summer programme was 57 per cent sold, which is 4 per cent ahead of last year. Average selling prices are 1 per cent down on a year ago with favourites Spain and Turkey again strong sellers.
It added that although it was experiencing pricing pressures, due to excess airline capacity and intense competition, it expected to hit full-year targets.
Brokerage Jefferies noted: “The UK’s positive progress is being sustained and the outlook is unchanged.”