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Package holidays return to popularity

benagilThe travel specialist, TUI Travel, has seen its profits rise on the back of an increase in package holiday bookings.

Europe’s largest tour operator says that all-inclusive package holidays are “back in vogue”.

TUI has put renewed emphasis on reducing costs and selling package holidays directly to customers. Online sales are now responsible for 35% of total sales.

One reason for the increase is thought to be the rising use of tablets and mobile phones used by customers to book holidays.

The company also notes there is a trend away from holidays in Spain to more exotic locations, such as Cancun in Mexico, Florida and Thailand.

While TUI has gained new customers in the UK and Scandinavia, there was a 7% reduction in numbers from Germany, its largest market, and a massive drop of 19% of its French market.

For its winter programme, TUI has shifted capacity away from strife-torn Egypt, but it has nevertheless already sold 60% of its mainstream deals.

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