TUI Travel continues to outshine major rival

Europe’s biggest tour operator said cumulative bookings as at March 25 were 6 per cent lower, compared to a 7 per cent decline as at January 29, driven by demand for differentiated products – that is, holidays exclusively available through TUI.

However, the company said weak demand for North African destinations, such as Tunisia and Egypt, following political turmoil in the region, continued to weigh on its overall performance.

Thomas Cook, which was forced to turn to its banks for additional support last year and has reduced its capacity, unveiled a worsening picture on Wednesday with a decline in summer bookings widening since its last trading update in February.

The battle between TUI Travel and its rival Thomas Cook has heated up since the latter revealed the extent of its difficulties last November, when it appealed for a £100m lifeline from its lenders.

Thomas Cook rolled out a publicity drive after its troubles were exposed, with adverts in national newspapers reassuring customers that it was safe to book holidays despite fears of its collapse.

But TUI was quick to capitalise on its rival’s woes by publishing its own adverts saying: “Another holiday company may be experiencing turbulence, but we are in really great shape.”

TUI Travel said overall trading was in line with expectations, including an improvement in winter bookings.