(Bloomberg) -- TUI AG said bookings for the winter season are strong despite a cost of living squeeze in its major markets.

Selling prices and bookings for summer 2023 were “well ahead” of last year, the world’s biggest tour operator said Tuesday. TUI confirmed its full-year guidance, expecting underlying earnings for the financial year ending Sept. 30 to jump. 

The shares rose as much as 3.9% in early trading.

Travel demand in Europe recovered from the coronavirus pandemic this summer despite inflation weighing on household budgets.

Bookings for the upcoming winter season are 15% ahead compared with a year ago, alongside prices gaining 4%. TUI will report full results on Dec. 6. 

Still, there are signs from others in the industry that strong price growth in the sector is slowing. Airlines across Europe have begun discounting their tickets as the peak summer travel season gives way to the traditionally slower months with more subdued bookings.

Budget-conscious consumers are grappling with a higher cost of living as mortgages, energy bills and groceries rise, contributing to price cuts from EasyJet Plc, British Airways and Ryanair Holdings Plc. 

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