Pension freedoms giving the over 55s easier access to their retirement savings seem to be boosting travel firms.
Since the freedoms came into force in April 2015, pension savers have shunned the yellow Lamborghinis ministers feared they would buy in favour of more trips abroad.
The result is share prices of travel firms have boomed.
The latest to benefit from the advent of the silver pound are travel agent to airline Thomas Cook and grey financial services firm Saga.
Thomas Cook is basking on the markets with an 11% increase in bookings not so long after manoeuvring through a period of dire returns.
Strong appetite for holidays
The company says business is picking up in countries shunned by tourists due to the risk of terrorism and travellers are ignoring the worries of inflation and static incomes to carry on booking holidays.
The group has reported trading in line with expectations with more than 90% of capacity sold.
Chief executive Peter Fankhauser said: “Thomas Cook has enjoyed a good summer. Customers from across our markets have shown a strong appetite for our holidays, picking a wide range of destinations in their search for the sun, with Greece, Bulgaria and Cyprus proving particularly popular.
“Demand for Turkey and Egypt has also picked up as customers look for quality and value. Meanwhile, bookings to Spain, our biggest destination overall, remain level.”
The company also announced plans to develop own-brand hotels for the first time.
Thomas Cook has bought a 42% stake in a resort operator that already owns eight hotels in Spain, Greece, Cyprus, Tunisia and Austria and has plans to open four more within two years.
Saga sets sights on cruises
Meanwhile, Saga has announced the building of two new cruise ships as the first ships in a larger fleet.
The ships will carry just under 1,000 passengers and offer all cabins with balconies and more intimate surroundings than larger ships.
Robin Shaw, chief executive, Saga Cruises, said: “Our loyal customers have played a key role in the design process for our first new build ship Spirit of Discovery. To date almost 7,000 passengers, who had pre-registered to sail on her have already gone on to book one of our new itineraries. This is a phenomenal conversion of over 80%.”
