Falling pound didn’t stop us taking holidays

THOMSON Holidays owner Tui said Britons were still opting for holidays abroad despite prices going up.

UK holidaymakers are paying about 5pc more this year due to the fall in the pound since the referendum, but it has not stopped families from booking their summer breaks.

Tui, Europe’s largest tour operator, narrowed losses to £261m in the six month to March 31, an improvement on the £335m loss in the same period last year. Revenue rose 3.3pc to £5.4bn, as lower demand for Turkey and Egypt was offset by more bookings for Greece, Spain and Cyprus, as well as longhaul destinations such as the Caribbean.

Its northern region, which includes the UK and Ireland, Nordic countries, Canada and Russia delivered a 5pc growth in customer volumes. However, revenue dropped 5pc to £1.9bn partly because the Easter break was not included in this year’s results period. UK prices have also leapt about 5pc, but Fritz Joussen, chief executive, said British people had been remarkably resilient. ‘Prices have changed a bit but people love their vacations and they don’t want to give them up,’ he said.

Tui has sought to mitigate the rising prices by offering holidays in alternative destinations such as Bulgaria.

Cyprus and Greece are seeing a resurgence after prices in Spain rocketed.

Tui recently announced it was extending a partnership in China to cash in on the growing number of young, affluent Chinese families who want a Westernstyle holiday.

‘Therefore we are building more resorts and hotels in South East Asia, and also driving our cruise ships into South East Asia as well,’ said Joussen, who expects to report a 10pc lift in underlying earnings for the full year.

Shares closed down 4.8pc, or 57p, at 1133p.