Airtours cuts price of million holidays

Britain's package tour operators were thrown into turmoil today as MyTravel, better known by its former name Airtours, revealed it has a million summer holidays left unsold.

In what could be a bonanza for last- minute holiday shoppers, the company will slash an average of £25 off each unsold booking for the high summer season.

MyTravel shares plummeted by nearly a quarter, wiping £100 million off the value of the company, as it declared that holidaymakers hoping for bargains were leaving it later than ever to buy summer package deals.

The news was followed by reports that Thomas Cook is cutting more vacant holidays.

After 11 September, tour operators cut a million summer holidays hoping to prevent a last minute price-cutting dash to fill hotels and flights. But that policy appears to have underestimated falling demand.