Traditional holiday firms are fighting back against on-line companies. Holiday giant Thomson announced today it is unbundling hundreds of hotels and apartments from its packages to create a huge "holiday bed bank".

Almost 2,000 hotels and apartments will be bookable on-line. Initially there will be 1,500 holiday hotels and apartments in 48 beach destinations and more than 475 city hotels available through Thomson's website from as little as �1 per room per night. The holiday firm plans to increase the range of accommodation only options even further.

The Thomson site will have a bigger range of quality-checked beach accommodation than any other company. Accommodation ranges from small, unique hotels in out of the way locations through to large hotels in popular holiday resorts, as well as self-catering apartments and hotels in long and short-haul resorts. Accommodation can be booked for any duration, from one night to 99 nights.

The move follows demand for more flexible travel. *In the past eight years (from 1996 to 2003) the independent holiday market has grown by 138 per cent.

All Thomson accommodation is ABTA bonded and has strict health and safety checks. People who book accommodation through Thomson will not have a holiday rep. However, they will be given a 24 hour holidayline telephone number for general queries, booking car hire, excursions or for emergencies. Although the trend for DIY holidays is set to increase in the coming years, Thomson predicts that millions will stay loyal to package holidays.

Miles Morgan, sales and marketing director, said: "This is definitely not the end of package holidays. We still sell around 4 million package holidays a year and we predict the market will remain at around that level for the next few years. But demand is growing in the tailor-made travel market and we want to be at the forefront of growth in this area. It's about offering people more choice. Thomson offers a vast range of holidays - beach and city breaks, villas, ski and lakes & mountains holidays all over the world. We want to be able to offer flexible holidays for those who want to tailor make their own arrangements and package holidays for people who want everything done for them." He added: "Our new bed bank puts us well ahead of the competition. We're offering the biggest range of beach resort accommodation than any other company. And most of our resort hotels have brilliant beach-front locations or are within five minutes of the beach."

"But we will offer this alongside conveniently packaged, high service holidays for those who want everything done for them. Package holidays are still very appealing to a huge number of people because they still offer fantastic value. Things like children's clubs with first class baby sitting and child minding services from professionally trained staff is not necessarily something you would be able to get on a DIY holiday."

For further information visit www.thomson.co.uk/hotelsandapartments. Examples prices of accommodation:

Short-haul beach resorts... Club Paraiso hotel in San Antonio, Ibiza, which is 3T self catering costs �1 per room per night between 11-28 October 2004.

The Pefki Islands Apartments in Pefkos, Rhodes, which is 3R self catering costs �10 per room per night beween 23 - 29 October 2004.

Long-haul destinations..... The Quality Inn International on International Drive, Florida, which is 3T room only costs �35 per room per night between 1 November and 13th December.

European cities....

The Hotel Asturias in Madrid, which is a one star rating, costs from �30 per person per night for travel in November and December 2004 (based on two sharing).

Off the beaten track....

The Hotel Rural Son Paulo in Orient, Majorca costs from �75 per room per night between 1-20th May 2005 (minimum stay five nights in this period). It's in the heart of the Tramuntana mountain range.

Ends

* International Passenger Survey (not included VFR)

For further information, please contact:

Rachel O'Reilly Tel: 020 7383 1216