Thomas Cook AG to cut summer holiday prices by 5 pct

FRANKFURT Oct 29 (Reuters) - The German business of Thomas Cook (TCG.L), Europe's second-largest tour operator, wants to lure summer holiday-makers with lower prices and recession-friendly offers.

Thomas Cook AG plans to cut prices for the next summer holiday season by 5 percent, on average, it said on Thursday as it presented its summer programme.

The price cuts would be derived solely from lower purchasing prices and would not hurt the company's margins, it said.

Rewe plans to cut prices by 6 percent at its package tour operator unit, it said earlier this week. [ID:nLR337756]

The United Nations' World Tourism Organisation has said international tourism will decline by 4-6 percent this year and travel companies around the world are struggling to cope with a drop in demand as consumers tighten their travel budgets.

Thomas Cook's Neckermann brand has reacted by offering a guarantee that will allow customers to change or cancel their booking for free up to six weeks before departure, should they lose their job or be placed on shortened working hours for an extended period.

(Reporting by Eva Kuehnen; editing by Simon Jessop)