Traditional package holiday bookings are down

Troubled package holiday company MyTravel is to sell its US-based travel business World Choice Travel for $50m (�29.9m).

The move is part of the firm's programme to sell off assets and improve its cash position, in order to reduce its huge debts.

MyTravel said it would sell the US business - which helps customers find hotel rooms on the internet - to Travelocity, the travel website which is owned by Sabre, the airline booking arm of American Airlines.

The company said it hoped to complete the transaction in mid-November, pending shareholder and regulatory approval.

Two days ago My Travel announced it was stepping up its disposals programme with the sale of its US holiday cruise operations.

The company, formerly known as Airtours, said the sale of a string of US cruise holiday brands, as well as two US-based holiday operators, would raise �75.8m.

Money troubles

MyTravel has been actively selling off non-core businesses in a bid to put itself on a more sound financial footing since announcing it was facing debts of �628.5m at the end of March.

The group ran into problems initially due to the impact of September 11, which sharply reduced tourist travel, and mor recently because of the uncertainty over the Iraq war, which sent it heavily into the red.

Last month, the firm earned crucial breathing space after securing a three-year extension from bondholders on �221.6m of debt.