TUI Travel prices improve

Feb 9 2010 By nebusiness

Families are facing dearer summer holidays this year after one of the UK’s biggest travel firms reported a 9% rise in its average selling price.

Thomson owner TUI Travel said prices strengthened in recent weeks after UK bookings improved 6% in the period between November 22 and January 31.

It added: "We are seeing holiday demand improving across all our source markets, with sustained improvements in booking volumes over the last three to four months."

TUI said the average cost of a winter break was also 10% higher in the UK after it managed to match capacity to demand.

Across the quarter to December 31, the company said losses widened by £72m to £107m due to planned capacity reductions and tougher comparisons with a year earlier.