According to industry analysts, UK holiday giants TUI and Thomas Cook will have been forced to provide more cheap holidays to late bookers recently because of poor performance for the months of May and June. Wyn Ellis, an analyst at Numis, said he believed both operators would have had a surplus of holidays for these months. He pointed out that because holiday packages are perishable goods, tour operators will have been forced to get rid of them at heavily discounted prices.

Although Ellis believes that the early part of the summer will have been reasonably good for TUI – which owns Thompson – and Thomas Cook, the prices were not sustainable. Both companies are due to make statements later this week.

TUI has already reported that April’s ash cloud over Europe cost around £90 million. Thomas Cook has announced that it cost around £70 million. Jason Streets, and analyst at RBS, said there were still worries over consumer confidence in the current economic climate. He added however that he believed that travel sector was more resilient than some gave it credit for being.

Manny Fontenla-Novoa, chief executive of Thomas Cook, said in May that he was happy with the level of bookings, adding that they had risen by five per cent. Peter Long, head of TUI, said he too was pleased with improved bookings in May. He added that the April blip had not put people off making sure that they got their summer break.

TUI will announce its latest trends on Tuesday with Thomas Cook making an announcement on Wednesday.