Mainstream tour operators are predicting a strong 2007 thanks to having a foot in both the traditional package and dynamic packaging markets.

Cosmos sales director Andy Washington said the overall holiday market is “buoyant” with overall holiday sales up by 4% on last year.

However, he conceded the traditional package market continues to struggle with all the growth coming from component bookings.

“As we are working in both markets we can tear the packages up,” Washington said.

Accommodation-only bookings are doing particularly well with Cosmos’s and Thomson both experiencing 100% growth.

Washington revealed April and May have been particularly tough months for package holiday sales.

However, Thomson head of product innovation Stephen Lane admitted the overall market is a tough one, but said the firm had sold 10% more package holidays than this time last year.