Travel firm squeezed as holidaymakers hang back
THOMSON Holidays owner TUI Travel has been left with more cheap deals to sell after would-be sunseekers sat on their hands amid nerves over post-election tax rises, decent summer weather and the World Cup, the firm said today.
TUI, which has around four million UK customers, said disruptions from Iceland's volcanic ash cloud also affected trading as it warned of full-year results at the lower end of City hopes.
UK bookings have fallen 2 per cent since its last update in May and the firm now has more holidays to give away in the "lates" market, squeezing profits.
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Hide AdTUI, which is also braced for a hit from the pound's recent fightback against the euro, said the uncertainty was likely to linger as would-be holidaymakers waited longer before booking.
Chief executive Peter Long warned: "It remains difficult to predict how the later booking pattern will change over the next 12-18 months in the light of the current economic environment."