The updates from the package holiday and airline giants have provided fascinating insights into the state of play in the overseas travel sector, writes Business Editor Ian McConnell.

It has been fascinating in recent years to follow the updates from the major airlines and package holiday companies.

This is a sector that relies on discretionary spending.

And there has been great pressure on UK household finances.

What has been very interesting is the degree to which people, in these straitened financial times, have continued to prioritise holidays, where they can.

So TUI’s latest update this week grabbed the attention.

The package holiday giant and airline revealed that it was on track to achieve its recently raised profit guidance.

And the news on demand from customers in the UK was solid.

Commenting on current trading in its markets and airline business for summer 2025, TUI said on Tuesday: “The UK shows positive momentum with bookings up 1% whilst in Germany, bookings are at -5%, reflecting our strategic focus on protecting margins.”

And, looking at winter 2025/26, TUI declared: “The season has continued its positive start, with 1.8m bookings taken to date. Overall bookings are 1% higher, demonstrating resilient demand for our leisure travel products against the background of broader market challenges. ASP (average selling price) continues to track higher, up 3% overall. As is typical for this point in the season, trading for the winter is at a relatively early stage with over one third of customers having booked to date.”

In terms of popular destinations, it revealed: “Short and medium-haul destinations form the core of volumes, with the Canaries,........

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