Summer Holidays Prices To Rise Next Year As Fuel Costs Soar

PRESS ASSOCIATION -- Britain's biggest holiday firm has warned that the price of a summer holiday will rise next year as it bears the brunt of higher fuel and accommodation costs.

Thomson and First Choice owner TUI Travel said it will pass a 5% increase in the cost of providing a package holiday on to customers.

The news signals more pain for consumers who are already going abroad less as a result of the weaker pound and the squeeze in disposable incomes.

Average selling prices for next summer are up 10%, although this is partly because it has sold more specialised holidays, which tend to be more expensive.

TUI also shed more light on the decline in the UK holiday market, saying that bookings for next summer are down 11%.