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Late holiday bargains hype ‘just not true’, say agents

Newspaper headlines such as “tour firms slash prices by 75%” and “1.5 million holidays left unsold” are giving customers false expectations, say agents.

The national press has been full of stories of “desperate” operators cutting prices after Thomas Cook followed rival Tui Travel last week in forecasting annual profits lower than previously expected.

However, Ian Derbyshire, Cook’s UK and Ireland chief executive, said: “Prices in August are very good. We have 2% less to sell than last year. If there were bargains, they would have been in June.”

Denise Marsden, general sales manager of Miss Ellies Travel in Manchester, agreed.

She said: “These reports are just not true – there might be better deals in September.

“The average cost is £2,500 for an all-inclusive holiday in a three-star hotel during high season. People expect to be able to book a holiday for a couple of hundred pounds, but they just aren’t there.”

Although the big two are both forecasting annual profits lower than previously expected, Tui reported overall UK bookings for the summer up 2% on last year and average selling prices 10% up on 2009.

Thomas Cook said total summer sales were 1% down year on year, but average prices were up 3%.

So sales are broadly in line with capacity – Thomas Cook cutting 1% for the summer and Tui adding 2%.

Thomas Cook has maintained capacity for the coming winter at similar levels to a year ago and plans the same for summer 2011, but retains the ability to add or subtract holidays in response to demand.

Derbyshire added: “We always said the market would be difficult this year, and took appropriate measures.

“Package holidays offer outstanding value for money, but that doesn’t mean cheap deals.”

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