Airport News
Holiday price cuts due as packages go unsold
Wed, 11 Aug, 2010
First Choice and Thomson Holidays owner TUI has experienced sales difficulties following the volcanic ash cloud crisis and the uncertain economic climate.
David Millward reported in the Daily Telegraph that TUI is concentrating on cutting prices for destinations such as the Balearic Islands and Greece.
However, more popular destinations like Egypt and Florida will receive fewer discounts due to a steady rate of bookings throughout the year.
Despite denials from TUI that it was looking to "dump" holidays onto the market, several packages were available online at massively discounted prices.
A TUI spokesman told the Telegraph: "Overall Thomson and First Choice have very few holidays left to sell for the remainder of the summer season."
Analysts disagreed with this statement, stating that industry plans were put in place before the ash cloud, BA strikes and cuts announced by the coalition government.
Shares in TUI saw a ten per cent drop following the announcement earlier in the week that its yearly results would be at the "lower end" of expectations, due to the ash cloud and other issues.
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