Tui bookings surge boosts profits to £390m

Package holidays are back, according to Peter Long, the chief executive of Tui Travel who unveiled another strong set of results at the business behind Thomson and First Choice yesterday.

Mr Long has always argued that families now value their annual foreign holiday so much that they will keep taking it however tight the squeeze on finances.

Yesterday, he offered further evidence: an 8 per cent rise in profits to £390m for the year to September, although revenues slipped slightly to £14bn.

"We've had a renaissance of the package holiday, it is coming back. It is great value and give peace of mind. We look after our customers," he said.