'Unprecedented' price war prompts avalanche of holiday package bargains, as people stay at home to watch World Cup

Warm weather and the World Cup are conspiring to keep British holidaymakers at home, forcing big holiday companies to slash prices to the Mediterranean and beyond.

TUI, the UK’s biggest holiday company, is selling a week long holiday in Gran Canaria on Monday 9 July for £199 per person – an off-peak price for a peak-season holiday.

The departure, from Norwich, is one of many similar bargains that tour operators are being forced to offer in order to fill planes. The price includes 15kg of baggage and transfers.

An even cheaper deal is available to the same island from Doncaster on Saturday 7 July, at £185 for a week.

TUI also has has a return flight-only deal from Gatwick to Palma de Mallorca on 11 July – the day of the semi-final, if England beat Sweden – for a week for £49.

Thomas Cook’s Manos brand is offering a week in Parga, mainland Greece, for £269, departing on Sunday 8 July.

On Friday 13 July, when more schools will have broken up, Thomas Cook has a week in Bodrum – also flying from Gatwick – for £277.

The Independent has seen comments from a leading analyst, Jamie Rollo of Morgan Stanley, on the impact of the longest heatwave since 1976 and England’s unusually long run in the World Cup. He says there is “no real precedent we can think of” for this combination of circumstances in peak season.

While sales for the summer have previously been strong, airlines and holiday companies have plenty of unsold capacity – which they would normally be selling at good prices.

But after a promising start to June, the absence of rain and relative success of England in Russia, sales have slumped – with a double-digit drop since the victory over Colombia in Moscow.

The three months from July to September normally generate around 150 per cent of profits for tour operators – making up for the fact that, for much of the year, holiday firms are selling at a loss.

Travel firms have told The Independent that customers are staying at home in unusually high numbers.

Leighann Morgan, director of Opulent Travel Services in Shrewsbury, said: ‘’Regular customers who would have booked to go abroad are heading to the coast for weekends instead.”

Amy Lee, of the camping and caravanning specialist, Al Fresco, said: “Customers are enjoying the hot weather at home and delaying booking their holiday.

“Northern France is particularly popular for our late bookings at the moment.

“We expect this strong interest in late deals to continue through the summer with customers taking advantage of the weather with a holiday abroad, but closer to home than they would perhaps usually travel.”

Long haul bargains are also emerging, with TUI selling a week’s fly-drive in Florida for an almost unprecedented £507, based on two people travelling together from Manchester and staying in self-catering accommodation, for departure on Tuesday 10 July. A baggage allowance of 20kg per person is included.