DEAR READER

THE 12th interest rate rise in succession was hardly a surprise. Even so, belts will tighten another notch — and, worryingly, not everyone thinks inflation will be cowed by this latest Bank of England move. Where’s the growth going to come from?

Mind you, there is little evidence that people are looking to skimp on holidays. The Advantage Travel Partnership, which represents more than 350 travel agents, says there have been no more cancellations than normal at this time of year and new bookings are looking strong for peak-season breaks.

It has been a week of mixed messages. Tui’s chief executive, Sebastian Ebel, seemed determined to manage expectations by announcing that the golden age of cheap flights is over, while continuing to advertise packages with up to 40 per cent off.

Mr Ebel, who took over seven months ago, reported a 13 per cent jump in bookings for 2023, reaching 96 per cent of the 2019 figure. By warning of a lack of last-minute deals, the 60-yearold German clearly wants his customers to book now and help balance Tui’s books, a ploy used by Ryanair’s Michael O’Leary, who last year also said the days of cheap flights were numbered.

Yet Ryanair has just ordered up to 300 planes from Boeing, and silver-tongued Mr O’Leary said these aircraft will burn less fuel, resulting in ‘cost savings which will be passed on to passengers in lower air fares’.

Meanwhile, as our cover story reports, new hotels at a range of price points, including shoe designer Christian Louboutin’s Portuguese outpost, are springing up across Europe, which seems to cock a snook at the economic doomsters.

And even though Passport Office workers and Border Force staff have voted to continue industrial action, it’s unlikely to deter travellers. We’ve almost become immune to strikes. The sooner unions realise this, the better it will be for everyone.