Thomson has denied an offer of self-catering accommodation for just £2 a night is a reflection of the market or even its own sales.
The accommodation-only deals are available for studio and one-bedroom self-catering apartments in Greece or Turkey. Prices start from £14 for a week in October.
Similar deals for Menorca in Spain cost £28 for a week.
A Thomson spokesman described the offers as “targeted marketing initiatives to promote small pockets of availability”.
He added: “This is in no way a reflection of the current economic conditions. In fact, as noted in our most recent results released in May 2008, Thomson has not seen any evidence of deteriorating customer sentiment in booking patterns.
“In the trading statement issued at that time, TUI UK’s mainstream summer 2008 sales were reported as up 8%, with 21% less holidays to sell compared to last year.
“While this is a genuine offer which some of our customers will benefit from, it is a one-off promotion to promote a few selected hotels and is in no way indicative of current trading for the group or overall market.”