The tour operator, which recently resumed selling holidays in Tunisia to Britons for the first time since the terror attack at a resort in Sousse in 2015, said the popularity of Spanish resorts due to political tensions elsewhere was also driving up costs.
Overall group bookings were up 11 per cent over the summer, including an 8 per cent increase in the UK, with Greece, Bulgaria and Cyprus among popular destinations.
It added: “Demand for Turkey and Egypt has continued to increase.”
Peter Fankhauser, Chief Executive of Thomas Cook, said demand had picked up “as customers look for quality and value”.
He told Radio 4’s Today programme: “Both destinations are wonderful countries, with great hotels, great beaches, nice people, and it’s really good value.
“People want to go back. We are not a security company; as long as we have the advice of the Foreign Office that we can fly to Egypt and Turkey, we offer a great product.
“Spanish hoteliers are taking advantage a bit of the increased demand, and prices went up because we have not enough beds for all the demand,” said Mr Fankhauser.