Last-minute holidays will be hard to come by this summer, according to the boss of TUI.
The German travel firm's CEO warned that people cannot expect bargains shortly before departure and suggested the era of the ultra-cheap flight was over.
His comments echoed those made by Ryanair CEO Martin O'Leary earlier this year when he said that there would be no £9.99 fares this summer.
TUI Chief executive Sebastian Ebel said the firm was seeing exceptionally high demand in the first full summer since the end of the pandemic as people remain desperate to get away, despite the spiralling cost of living.
Unlike previous years when unsold holidays would be advertised for bargain prices shortly before departure, the high demand means few are likely to be up for grabs.
Ebel told German weekly newspaper Bild: "On the contrary, prices will tend to be higher rather than lower shortly before departure, because hoteliers and airlines also know that a lot is still booked at short notice. Spontaneous bargains will be the absolute exception."
He added: "The demand for holiday flights exceeds supply, so you won’t get these cheap offers for marketing campaigns like you used to, with occasional exceptions."
The company is on track to make a profit this year, he said, having fully repaid the government for aid it received during the coronavirus pandemic.
In terms of trends, Greece is the best-booked destination this year, Ebel said, with some TUI hotels in the country already fully booked for the summer. There is plenty of capacity left in Turkey and Spain however.
Holidaymakers still plan to take two trips abroad in 2023 – despite having to cut back on their travel spending amid the cost-of-living crisis, a study has found.
A poll of 2,000 Brits revealed that the average traveller now has £300 less to spare for their next trip – with almost half (47%) making changes to the way they travel to ensure they can still get away.
More than a third (35%) will book destinations closer to home rather than somewhere far-flung, while almost half (46%) will go away for a shorter period.
And 47% said they feel more pressure than ever to make sure their holidays offer value for money.
If you are keen to getaway this year but don't want to break the bank doing so, choosing a country with a favourable exchange rate compared to the UK pound is a good place to start.
Cape Town in South Africa was named the best bargain location for holidaymakers looking to squeeze the most out of their money earlier this year.
In recent months sterling has been gaining ground against the South African rand in and is now worth 15.7% more than last March. Holidaymakers visiting Cape Town can expect to receive nearly £68 more in rand on a £500 currency transaction.
To add to the sweet deal, there are plenty of bargains to be had in South Africa, according to a Post Office report. Tourists can buy a three-course evening meal for two with wine, bottle of beer, glass of wine, can of coke, large bottle of water and a cup of coffee for £51 - 8% cheaper than last year.
Closer to home, Marmaris in Turkey is another great spot for bargain hunters, as the lira continues to tumble in value and is worth 19.2% less year-on-year against sterling, giving UK visitors an extra £80 in lira on a £500 transaction.
The same bundle of items now costs the equivalent of £57 in the Turkish resort.
