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"From thetimesonline.co.uk
Thomas Cook, Europe's second-largest travel operator, this morning said it had seen a marked increase in bookings in the past four weeks as the downturn spurs a return to package holidays.
The company said that while bookings remained well down on a cumulative basis, there had been a resurgence in the past four weeks, boosted by British demand for holidays in non-euro destinations, such as Turkey.
Manny Fontenla-Novoa, chief executive, said: "Consumers' need for a holiday is really strong and maybe even stronger at times like these. I felt like a lone voice at times, saying I think package holidays are great value and offer great protection for the consumer, and I think there's a trend for people who thought package holidays were going out of fashion checking back in."
Thomas Cook said cumulative bookings across its markets were down 16 per cent on last year for this summer, after it reduced its capacity by 11 per cent. Bookings for this winter season are down 7 per cent overall but up 12 per cent over the past four weeks.
He said that holidaymakers were leaving it later to book their holidays due to the uncertain economic environment. Mr Fontenla-Novoa said that any discounting was being borne primarily by hoteliers and not by Thomas Cook.
In Britain, Thomas Cook's largest market, the weak pound is driving holidaymakers to destinations outside the eurozone.
"The hot ticket out there is an all-inclusive holiday in Turkey", Mr Fontenla-Novoa said.
Nick Batram, at KBC Peel Hunt, said: "Trading is undoubtedly tough but overall no worse than expected and indeed ‘lates' appear to be coming through nicely. Prices are holding up, while Germany is recovering."
