A strong lates market, and the resurgence of the package holiday, helped Thomas Cook Group meet its summer trading target, according to the company’s pre-close trading update.
In the four weeks to September 5, UK sales were down 1% on last year, and the average selling price was up 8%. Bookings from the start of the year until September 5 were down 10%, although this was following a 10% fall in capacity.
The capacity reductions allowed the vertically-integrated operator to achieve departed load factors of 96% from May to August. Turkey and Egypt performed well.
Chief executive Manny Fontenla-Novoa said: “Summer trading is finishing in-line with expectations underpinned by a strong lates market and the popularity of the package holiday. Through our flexibility we have managed capacity and supported our pricing and margins.”
For winter 2009/10, sales during the four weeks to September 5 were down 3% on last year, while sales were down 11% since the start of the year. The operator said it had cut short-haul capacity for the season and was focusing on medium-haul destinations.
Fontenla-Novoa said: “We are encouraged by winter bookings, which have improved since August.”
So far, 11% of summer 2010 holidays have been sold, following the operator’s decision to launch its brochure two months later than usual.
“The later brochure launch gives us greater flexibility in our early-price negotiations with suppliers,” said Fontenla-Novoa. “Although it is early in the season, both selling prices and margins are ahead of this year.”