Tui Travel described key January trading as “robust” as it announced an £8 million cut in winter operating losses to £108 million.
Demand for the group’s “unique’ holidays was one of the drivers of growth together with strong levels of online bookings in the three months to December 31.
The group said it was confident of delivering full-year operating profits growth of between 7% to 10%.
Mainstream summer 2014 online bookings are up by 8% while sales of unique holidays now account for 74% of mainstream summer bookings, up two percentage points on the previous year.
Chief executive Peter Long said: ”We are very pleased with our current position having reduced the operating loss in the first quarter against a strong prior year performance.
“We have delivered further efficiency savings in France and an improved result in Specialist & Activity.
“Our digital transformation continues to gather pace, with a very successful online performance across Mainstream throughout the key January booking period.
“We also continue to see strong growth in our Accommodation Wholesaler business.”
He added: “Our strategy is delivering sustainable growth, with a robust business model focused on growing unique holidays and online distribution.
“Overall, trading remains in line with our expectations and we are confident of delivering 7% to 10% growth in underlying operating profit during the year.”
Winter 2013/14 is closing in line with expectations with 85% of the programme sold, with higher average selling prices in most source markets.
Tui said it was pleased with summer 2014 trading, in particular its performance in the key January booking period, with higher average selling prices and Mainstream volumes up by 1% against “tough” comparatives.
Total transaction value in the accommodation and wholesale sector is up by 45% in early summer 2014 trading.