British holiday company Thomas Cook is confident of meeting its full-year expectations, buoyed by higher winter bookings and improved trading across Europe ahead of its key summer season, it said on Tuesday.

For the summer, when holiday companies make the bulk of their profits, Thomas Cook said it had sold 54 per cent of its holidays, 2 per cent higher than this time a year ago, with tour operator bookings and average prices down 1 per cent.

UK demand remained healthy, Thomas Cook said, with trading in Continental and Northern Europe gradually improving.

Summer bookings in Continental Europe were 4 per cent lower than a year ago, versus 6 per cent lower when the firm last reported in February. Similarly the decline in Northern Europe improved from 7 to 5 per cent.

The company said its winter season was 95 per cent sold, with bookings up 1 per cent and average selling prices down 2 per cent.

Chief executive Peter Fankhauser said the improvements in trade, combined with new products and cost savings would help offset industry pricing pressures and deliver growth.

"We continue to expect further growth in 2014/15, consistent with our expectations at our full-year results," the firm said.

Last Wednesday, rival Touristik Union International (TUI) said holiday sales for its winter season rose 1 per cent, while holiday prices for the coming summer were also 1 per cent higher, with summer bookings up 1 per cent.

Thomas Cook, the world's oldest travel group, is facing a renewed challenge from TUI, the world's largest travel group which was formed from the merger of London-listed TUI Travel and German majority owner TUI AG in December.

In a tie-up that should give Thomas Cook a boost, it entered a partnership deal with China's Fosun International earlier in March, to help accelerate the development of higher-margin premium resort hotels.

Since the Fosun deal was announced, shares in Thomas Cook have risen almost 19 per cent. Shares in the firm were up 3.1 per cent to 147.5 pence in early trade on Tuesday.

Thomas Cook, which is on average expected to post a full-year operating profit of £358 million ($529 million), according to Reuters data, will post half-year results on May 20. - Reuters