TUI Travel is outperforming the market in the UK, with bookings up by 4%.
Average selling prices in the UK are up 7%, thanks to higher demand for unique and all-inclusive holidays.
Sales of unique holidays are up by 14% compared to the same period last year and account for 83% of holidays sold to date.
Announcing its third quarter results today, the Thomson and First Choice parent said 84% of its overall mainstream summer programme is now sold.
Strong trading has helped lift third quarter operating profits by £13 million to £87 million in the three months to June 30, despite an £11 million hit from the timing of Easter.
Chief executive Peter Long said: "Our strategy of offering our customers unique holiday experiences continues to drive sustainable growth.
"Our strong brands and market leadership position are fundamental in achieving this strategy.
"The flexibility and robustness of our business model enables us to more effectively absorb the impacts of geopolitical events.
"Given our current position we remain very confident of achieving full year underlying operating profit growth of at least 10% on a constant currency basis and are well positioned to continue to deliver our five-year growth roadmap."
Long would not go into detail about capacity plans for 2014 but revealed "you can reasonably assume it will be up in the summer".
He dismissed fears about the impact of the July heatwave in the UK, saying TUI builds potential issues like this into its business model.
"Saying the hot weather is like the ash cloud is utter nonsense," he said.
He said problems in Egypt could also be absorbed, with capacity switched to the Canaries and Cape Verde. Egypt makes up 8-9% of its winter programme and 4-5% of its summer.
Long also dismissed concerns over the recent technical issues for the Boeing 787 Dreamliner.
"They’ve had teething problems, but all new aircraft have teething problems," he said. "The 787 will give us a huge point of difference and competitive advantage."
Looking forward to the winter season, Long said he was happy with current trading, with prices 8% up and 20% of the programme already sold.
