TUI Travel has given a much needed push to the United Kingdom leisure market following their claim that they have not seen any signs of demand slowing in spite of the credit crunch and consumer downturn. As the biggest travel operator in Europe, TUI Travel revealed a 39% rise in their underlying operating profits with 65.4 million pounds on the back of their average holiday prices rising 13%. Peter Long, the Chief Executive of TUI Travel, said that he was happy with their results, which follow the merger from last year of First Choice and Thomson Holidays. There hasn’t been any evidence of a slowing demand, he continued, and while some people have debt, their customer base is coming from hard-working residents from middle England. He also said that these are the people who work hard to save their money, putting something back every month.

TUI Travel has been rising their prices by sharply cutting back their capacity since the merger. They plan to cut their capacity during the winter season in the United Kingdom by 21%, as well as during next summer by 15%. Their strategy has already let them avoid reducing costs in the late market, according to Mr. Long, refusing that their holidays are being discounted. There is an underlying demand there, he continued, and they don’t want to start a price war. Mr. Long also says that while the average prices in the United Kingdom were forecast to increase by 12% next summer, it is due to travelers taking better holidays.

Get more information at: www.tuitravelplc.com