Savings and desire to holiday will override cost of living fears, Tui predicts

Tui Group chief executive Fritz Joussen said household savings were “incredibly high” and would offset worries about spiralling energy bills, rising inflation and increased mortgage rates.

“We don’t see a pattern of people not booking holidays because of the savings ratio,” he said, adding consumers were choosing “the Caribbean instead of the Canaries”.

He acknowledged aviation fuel prices were “very high”, having risen to around $92 a barrel from $65-67 a couple of weeks ago.

However, he said Tui had hedged its summer needs and consumers would benefit from a strong pound, which has gained nearly 10% against the euro in the past year.

He added holidays to Turkey would be “very attractive” because of the devaluation of the Turkish lira. A pound buys around 18.5 lira today, compared with only 9.73 lira a year ago.