Lower household bills and Mortgages allowing holidaymakers to splash out!

According to Britain's biggest tour operator, TUI Travel, which owns the Thomson and First Choice brands, lower household bills and Mortgages are allowing holiday makers to start booking this summer 2009 holidays.

TUI Travel saw an increase in bookings and stronger customer demand over the past four weeks, in particular coming from the UK and Germany.

Peter Long, chief executive, said the flurry of bookings showed “the high degree of importance customers put on a holiday,” adding: “I think you’re seeing the effect of low interest rates on disposable income, plus lower food and energy bills.”

The company said that UK bookings in the last four weeks were 7 per cent lower than this time last year, an improvement on the 18 per cent fall for the year so far, and it had 14 per cent fewer holidays left to sell.

It said that the 17 per cent cut in charter capacity from the UK meant selling prices were up 10 per cent, with demand for non-euro destinations proving particularly popular. Recent bookings to Turkey are up 8 per cent, Egypt is up 18 per cent, while all-inclusive deals are up 13 per cent.

Mr Long said that, with reduced capacity and strong selling prices in most of its markets, he was confident of meeting load factor and margin targets.

TUI said it had also seen an improvement in winter bookings since early February, and its programme was now 90 per cent sold in all key markets, with booking levels in line with capacity reductions.

In the UK, the winter programme is 93 per cent sold and average selling prices in the last four weeks rose 11 per cent.