Tui on track for annual earnings to rise by at least a quarter as consumers prioritise spending on holidays

The price of its holidays rose 3 per cent for the summer period and are up 5 per cent so far for winter.

But this is not just down to increased prices, with Tui saying it is also partly due to holidaymakers choosing more expensive trips.

It said this was “helping to offset the higher inflationary-driven cost base we are witnessing across the business”.

It confirmed guidance for underlying earnings over the full year to September 30 to rise by “at least” 25 per cent on last year’s 977 million euros (£500m).

Tui said it has been a “promising start to winter 2024-25 as consumers continue to prioritise spend for leisure experiences”.

The group said it added another 1.4 million summer holiday bookings since its update in mid-August, taking the total for the season to 14.7 million.

The most popular summer destinations included Spain, Greece and Turkey.

In the UK, summer bookings lifted 5 per cent, with its programme 97 per cent sold.

Its winter programme is already 40 per cent sold in the UK and remains “in line with the high levels of the prior winter season”.

Sought-after destinations over the winter season include the Canaries, Egypt and Cape Verde but it added that Thailand, Mexico and the Dominican Republic are set to be popular long-haul choices.