News

THOMSON Holidays has vowed not to drop to “silly prices” during the peak season following fears by smaller operators of a price war.

With continued worries about over-capacity, smaller operators are concerned Thomson could reduce prices, forcing others to follow suit.

But TUI UK commercial director Derek Jones said: “We have just gone through a tough May and June and have not dropped prices to daft levels. We’re certainly not planning to do that in the peak season.”

But one operator told Travel Weekly: “Operators are discounting already. We have to hope the big four will hold their nerve. It depends on Thomson.”

Another observer said: “If Thomson has a lot of commitment to Spain, it will have to sell.”

Volumes are said to have picked up slightly but in the week ending June 12 figures leaked to Travel Weekly showed Airtours Holidays and Thomson Holidays’ sales were flat, First Choice traded 20% down and Thomas Cook 25% down.