THOMSON and First Choice parent company TUI Travel hailed an "outstanding" year for its UK business today after the package holiday made a comeback.

The firm said strong bookings for more profitable "unique" holidays, targeted at groups including couples and those looking for luxury all-inclusive resorts, drove a record performance, with UK underlying annual earnings jumping 32% to £197 million.

UK holidaymakers looking to escape to the sun after this year’s dismal summer also resulted in a surge in bookings for next summer, up 12%.

TUI said its unique holidays - including Couples, Sensatori and SplashWorld - were already up 18% for summer 2013, accounting for 83% of bookings.

Peter Long, chief executive of TUI Travel, said the year had been one of "many successes".

"We have delivered record group profits while the UK achieved outstanding results both in terms of profit and margin all against a backdrop of continued economic uncertainty," he added.

A hike in the price of its holidays and cost cutting efforts also buoyed figures, helping group-wide underlying pre-tax profits rise 8% to £390 million in the year to September 30.

In the UK, TUI increased prices by made 4% this winter and 3% for next summer, while it made £4 million in savings over the year.

Mr Long said the group was aiming for ongoing earnings growth of between 7% and 10% a year.