BRITAIN'S package holiday industry is having its best year since 1989, says the Thomson- owned travel agency chain Lunn Poly. It predicts nearly 8 million people will book an inclusive overseas summer holiday through a travel agent, an increase of between 5 and 6 per cent over last year.

Lunn Poly attributes better sales to the fact that operators have held prices to last year's levels: it says that the average price ( pounds 392) of its holidays until the end of June is 1 per cent lower than last year.

The top-selling destinations this summer are: Majorca, with 12 per cent of the market; Florida (8), Cyprus (6), Turkey (6), Tenerife (5), Ibiza (4), Algarve (4), Corfu (4), Minorca (4) and Crete (3). Destinations recording the biggest falls are: Kenya, down 55 per cent, Cyprus (44), France (22) and Florida (20) and Algarve (13).