UK Markets open in 3 hrs 54 mins

Summer holidays to Spain will cost 10% more next year, Thomas Cook warns

A summer holiday to Spain next year could cost Britons substantially more, Thomas Cook is warning (Alex Caparros/Getty Images)

Britons will be looking at paying up to 10% more for their Spanish holiday next summer, Thomas Cook‘s chief executive Peter Fankhauser, has warned.

The combination of the weak pound and security worries surrounding other potential destinations will see prices climb significantly, he said.

“Spanish hoteliers are taking a bit of an advantage of this increase demand, and prices went up and we do not have enough beds to meet this demand,” he told BBC Radio 4’s Today programme.

MORE: Ryanair attempts to win back customers with £5 flights to France and Germany

“For Spain, where we pay out hoteliers in euros, we see out of the weaker pound, we see a certain price increase from the currency.

“About a 5% to 10% price increase, we will have for sure in Spain.”

He added that a number of resorts had invested heavily in renovating hotels and updating facilities.

The value of sterling has plunged against major currencies such as the euro and the dollar since the June 2016 Brexit referendum. Over this summer, some tourists were barely getting €1 to £1 at some airport bureaux where before the vote, £1 was buying €1.31.

MORE: Sterling stumbles again as political tensions heighten talk of parity against euro

Fankhauser said that Egypt and Turkey are seeing an upswing in appeal – despite their recent history of security-related incidents.

“Both destinations are wonderful countries with great hotels, great beaches, nice people, and really great value for money,” said Fankhauser.

“We are not a security company, as long as we have the advice that we can fly to Egypt and Turkey, we will offer great holidays.”

Thomas Cook has started selling holidays in Tunisia to Britons for the first time since the attack at a resort in Sousse in June 2015.

MORE: ‘Pantomime villain’ airport bureaux see British holidaymakers short-changed on euro rates

Trips will resume in February 2018, after the Foreign and Commonwealth Office updated its travel advice.

A gunman strolled through Sousse shooting holidaymakers on the beach and in hotels, leaving 38 people – including 30 Britons – dead.

Fankhauser insisted the company abided by FCO briefings and provided full advice “as best we can” to customers about potential security risks to all destinations it offers.