Holiday prices set to rise
Thursday 22 September 2011
Britain's biggest holiday firm warned today that the price of a summer holiday will rise next year as it bears the brunt of higher fuel and accommodation costs.
Thomson and First Choice owner TUI Travel said it will pass a 5% increase in the cost of providing a package holiday on to customers.
The news signals more pain for consumers who are already going abroad less as a result of the weaker pound and the squeeze in disposable incomes.
Average selling prices for next summer are up 10%, although this is partly because it has sold more specialised holidays, which tend to be more expensive.
TUI also shed more light on the decline in the UK holiday market, saying that bookings for next summer are down 11%.
TUI added that bookings for the later part of the summer season were down 7% since the end of July as consumer sentiment worsened in the UK.
Across the summer, the total number of UK customers going away with TUI was down 1%, while average selling prices were up 5%.
It was a similarly gloomy picture for winter bookings from the UK, which are down 11%.
TUI has reduced the number of winter holidays it sells, particularly to destinations in Egypt and Tunisia, which are still being hit after the uprisings in north Africa earlier this year. Average selling prices are up 6%.
For next summer, the group is reducing the number of holidays by 4%.
But despite the poor conditions in the UK, TUI said it is on track to meet the City's expectations for the year to the end of September.
It has benefited from an increase in late bookings in all of its markets apart from the UK, with profit margins in line with expectations.
Geoffrey Macnab reviews American Hustle, also starring Christian Bale and Bradley Cooper
- 1 America's 'virgin births'? One in 200 mothers 'became pregnant without having sex'
- 2 Sun will 'flip upside down' within weeks, says Nasa
- 3 Christmas comes early: Justin Bieber is 'retiring from music'
- 4 Iain Duncan Smith leaves Commons food banks debate early
- 5 Children evacuated from swimming pool after prosthetic leg mistaken for paedophile
Exclusive: Young people ‘want UK to stay in Europe’: Four in 10 adults aged 18 to 24 are ‘firmly in favour’ of membership, poll shows
Tom Daley ‘is gay because his father died’ says UK evangelist
You can STILL be jailed for being a republican, government confirms, and it remains illegal to even 'imagine' overthrowing the Queen
Kiss and yell: Italian protester charged with sexual assault after kissing riot police officer
Iain Duncan Smith leaves Commons food banks debate early
Fighting back: the woman giving a voice (and 49,999 others) to the victims of sexism - by giving an airing to their horror stories
- < Previous
- Next >
£18000 - £27000 per annum + Award-Winning Benefits: Round The World Experts: D...
£18000 - £22000 per annum + Award-Winning Benefits: FCm Travel Solutions: FCm ...
£23000 - £27000 per annum + £18K base & uncapped commission & benefits: Flight...
Excellent Salary: Austen Lloyd: We would very much like to hear from applicant...