Thomas Cook says holiday bookings still strong

Travel giant Thomas Cook said yesterday, bookings for both winter ski trips and summer beach breaks remained strong and it had bought a hotel bookings website.

Thomas Cook, Europe's number two holiday firm, said it was in a good position for the rest of the year as it narrowed its operating loss in the two months to last December to €106.8 million, a 27 per cent improvement on 2006.

"Trading for winter 2007/2008 and this summer continues to be encouraging," Thomas Cook said in a statement. "The improved Group operating result reflects costs savings and improvements in underlying margins, partially offset by increased costs of fuel."

It added it had bought hotel booking website, Hotels4U.com for £21.8 million net of amounts to be reinvested.

Having seen their businesses savaged by online airlines and travel firms over the last decade, traditional players like Thomas Cook and Tui Travel are now buying up Internet rivals to get a slice of the action.

At the same time they are scaling down their airlines in the face of intense competition from firms like Ryanair and Easyjet.