TUI trumps Thomas Cook in summer holiday battle

Postcard from travel giant TUI to rival Thomas Cook: our summer was better than yours.

The German firm behind First Choice Holidays and Thomson Airways upped its profit forecasts for the year to December today, after selling 97% of its summer programme, launching two cruise ships and opening five hotels.

It now sees growth in underlying earnings between 12% and 13% over the year to October — up from August’s prediction of at least 10%.

Despite European terrorism and Brexit, the UK was TUI’s strongest region, with Britons spending 5% more on holidays.

Strong demand for breaks to Mexico and the Dominican Republic this winter means bookings from the UK are up 22%.

Fewer bookings in the Nordics and Germany meant revenues rose 1%, in contrast with Thomas Cook where European summer bookings fell.

TUI’s shares rose 3% or 35p to 1121p.