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TUI the owner of Thomsons holidays claims it has seen an increase in customers booking all inclusive holidays as customers are opting for a fixed priced holidays during the current climate.

CEO Peter Long announced a 10% jump in half year losses in the six months leading up to March which is normally a loss making period, but Mr Long stated that many of its customers were booking all inclusive as customers were looking for the budget option.

Mr Long also stated that apart from the budget advantage of fixed price holidays customers were also chossing Thomsons over budget airlines as they felt safer as they know Thomsons will look afetr its customers if something goes wrong, especially with the current ash cloud problems.