Package holiday prices for the coming summer are 9 per cent higher than 2016, as result of the post-referendum slump in sterling and rate-hikes by Spanish hoteliers.
Partly because of the prevailing high prices in Spain, bookings to Greece for summer 2017 are up by nearly half. Customer confidence in Turkey is still in decline, but numbers to Hurghada in Egypt are increasing.
The figures come from Thomas Cook, which has just announced its results for the first quarter of its fiscal year, covering October to December 2016. The firm said average selling prices for outbound holidays from the UK are 9 per cent higher than a year ago.
Peter Fankhauser, Chief Executive of Thomas Cook, said: “Bookings to Greece are currently up by over 40 per cent, while demand for destinations such as Cyprus, Bulgaria, Portugal and Croatia is also strong.
“These positive trends are making up for continued weak demand for Turkey.”
A basic self-catering package for a family of four on the Spanish island of Lanzarote sold under Thomas Cook’s Airtours brand costs £456 per person, including flights from Gatwick, while a similar holiday in Marmaris, Turkey, is on sale for £362. On Greece’s largest airline, Crete, a comparable Thomas Cook trip costs £422.
Demand for Greece last year was dampened by reports about large numbers of migrants passing through the islands.
Intense competition between low-cost airlines means that flight-only prices for the coming summer are no higher than last year. On Monday, Ryanair predicted air fares would fall during 2017.
Among long-haul destinations, Cuba and Mexico are proving popular, at the expense of Florida.
Thomas Cook is the UK’s second-biggest tour operator after Tui, and has pan-European business. Revenue for the first quarter rose by 1 per cent to £1,618m, with the usual seasonal loss £1m lower at £49m.
Mr Fankhauser added: “We remain cautious about the rest of the year, given the uncertain political and economic outlook.”
Shares in Thomas Cook Group fell in early trading, losing 9 per cent of their value before recovering slightly.
