Travel giant TUI has reported a sharp fall in bookings in the UK market for summer 2012 when compared to last year.
Overall, TUI saw bookings drop 11 per cent, with the fall partially attributed to a nine per cent reduction in capacity.
Just 19 per cent of TUI’s UK programme for summer 2012 has presently been sold.
“This slow down is being driven by the continuing issues in North Africa and a weaker consumer environment,” TUI said releasing its annual report earlier.
TUI said later booking among consumers was also playing a part in slow sales for the season.
“We remain cautious about 2012, given the continued economic uncertainty in Europe, a slow recovery of demand to North African destinations and increased volatility in fuel prices and currency exchange rates,” added the report.
However, in the mid-term, TUI remains cautiously optimistic.
“There is, however, every reason to believe that the demand for leisure travel will continue to experience robust growth in the long term.
“TUI Travel has already proved resilient in a challenging market environment and, with a heritage in leisure travel and a diverse range of experiences on offer, the company is well placed.”