Tour operator Thomas Cook said holidaymakers were flocking to Cuba and Greece this year but added that prices remain under pressure.

The 174-year-old firm, which organises package holidays to Malta, said UK winter holidays were 92 per cent sold – nine per cent up on last year – with Egypt reviving as a popular destination following a period of political unrest.

However, average selling prices are two per cent down on a year ago as the agent has sold a higher number of seat-only flights, reflecting customer demand for more flexible holidays.

The tour operator said its UK summer programme was 57 per cent sold, which is four per cent ahead of last year. Average selling prices are one per cent down on a year ago with favourites Spain and Turkey again strong sellers.

The company is now run by Peter Fankhauser, who took the helm at Thomas Cook after the shock departure in November of his well-regarded predecessor Harriet Green.

She narrowed losses at the business, which nearly collapsed in 2012, after a campaign of cost savings and a purge of low-margin operations.

Our bookings are developing well

Overall, the group said its winter holiday programme was 95 per cent sold, which is one per cent ahead of last year, with average selling prices down two per cent.

It added that its summer holidays were 54 per cent booked, with bookings down one per cent as trading in many parts of Europe has remained tough.

The company added that bookings at its various concept hotels, aimed at families, couples, or single travellers, were 20 per cent up on 12 months ago.

Mr Fankhauser said: “Our bookings for the full year are developing well, especially in the UK and Airlines Germany.”