HOLIDAYMAKERS hoping to escape the dismal UK summer were warned today to expect higher prices and fewer late getaway deals.
Thomas Cook said moves to cut capacity had left it with 14% fewer holidays to sell than at this time last year – while average prices were up 14% in the past three months.
But the group, which merged with former Airtours operator MyTravel last year, added that cash-strapped consumers were still prepared to splash out on foreign holidays, with sales of luxury trips soaring despite the wider economic gloom.
Thomas Cook said it had sold 86% of this summer season’s holidays – having cut capacity by 10%,. It said that trading for winter and summer 2009 was “encouraging’’.
Sales of all-inclusive and four and five star holidays for this coming winter season were up 10% and 13% respectively.
Chief executive Manny Fontenla-Novoa, said: “People are cutting back on their travel expenditure, but they’re cutting back on discretionary spend, like weekend breaks away in Paris or Barcelona.
“Our research shows that people want to cut out those sorts of things before their holiday.”
Thomas Cook said the average selling prices for winter 2008 holidays rose by 9% in the past six weeks, while prices for summer 2009 were up by 8%.
The group said prices were rising to combat rising fuel costs, and because it had fewer last minute deals to sell.
