Travel companies to slash holiday prices in 2012

PA

Travel giants like Thomson and First Choice are set to slash family holiday prices by around £500 in 2012 - to compete against the Olympics and the continuing financial crisis.

Tactics they'll use to entice holidaymakers will include headline price cuts, free places for children, and redundancy protection for people worried about the security of their job, according to the Daily Mail.

According to retail analysts Mintel, four in 10 people think a holiday in 2012 is a luxury they shouldn't be splashing out on.

Plus, the Olympics taking place during the holiday peak season could be a threat to the travel industry.

Many travel companies have found the industry tough in the last few years, with Thomas Cook recently announcing the closure of 200 shops and a pre-tax loss of £398 million.

But the company insists that families are still attempting to take foreign holidays despite financial pressure, and that only three per cent of people have said they would cancel their annual summer getaway in 2012 because of the Olympics.

The managing director of Thomson and First Choice also said their research shows that "customers would rather cut back on other luxuries than forgo their annual summer holidays in the sun".

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