TUI Travel prices up as holiday makers spend big again

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Thomson owner TUI Travel said prices strengthened in recent weeks after British bookings improved six per cent in the period between 22 November and 31 January.

The company said: "We are seeing an improvement in holiday demand across all our source markets," adding that they had been sustained in booking volumes over the last three to four months.

TUI said the average cost of a winter break was also 10 per cent higher in the UK after it managed to match capacity to demand.

Across the quarter to 31 December, the company said losses widened by £72 million to £107 million because of planned capacity reductions and tougher comparisons with a year earlier.

Chief executive Peter Long thinks the worst is behind the company.