Thomas Cook reports robust sales in main holiday market

According to Thomas Cook, UK holidaymakers should plan to spend at least eight per cent more for their summer holiday in 2009, as fuel costs and reduced demand send prices higher.

The second-largest travel operator in the UK also indicated that British consumers were cutting back on shorter, weekend-type breaks, but that bookings for next year’s major summer holidays were “encouraging” and in line with figures for this past year.

“People will cut back on a weekend in Barcelona, but the main holiday is more of a must-have. It isn’t recession-proof, but it is robust,” commented the chief executive of Thomas Cook, Manny Fontenla-Novoa. “People are cutting back on cars, clothes and white goods; the last thing they cut back on is their holiday.”

Since merging with MyTravel in 2007, Thomas Cook has worked to reduce capacity, and this strategy has made it possible for the travel company to increase prices to all destinations excepting the US.

In the UK, prices increased by six per cent in August over the same month last year. Capacity fell by 10 per cent and bookings declined by nine per cent.

In northern Europe prices were higher by 10 per cent, in continental Europe by four per cent – but down in North America by two per cent.

The euro’s strength of has had a significant impact on travellers’ choices of destinations for their holidays, Thomas Cook noted. Although Spain remains the favourite for package holidays, destinations outside the euro-zone have increased in popularity, with Turkey moving in the number two spot, and winter packages in Egypt up by 23 per cent.

www.thomas cook.com