Holiday bookings on rise at Tui

Thomson Holidays owner TUI Travel hailed a "significant recovery" in consumer demand today as holidaymakers ignored the slump.

The firm said UK bookings for the summer season had risen 13% in the six weeks since early February despite a 9% rise in average selling prices.

"We are encouraged by recent strong trading trends and are confident as we move towards the summer season," the company said.

British holidaymakers have faced headwinds including a much weaker pound as well as recession, although TUI's update signals sunseekers are determined to head abroad after two disappointing UK summers in a row.