TUI has launched a new budget holiday brand in the UK aimed at travellers looking for the cheapest possible deals, with Tenerife, Gran Canaria, Lanzarote and Fuerteventura already included among its destinations.

The tourism giant's new digital brand, Sundeals, is designed to target holidaymakers who spend time comparing prices online and are prepared to shop around for the best deal.

Unlike traditional TUI packages, Sundeals can combine hotels with flights operated not only by TUI but also by other airlines, including Ryanair and easyJet.

The platform currently offers access to around 20,000 hotels across more than 100 destinations, with the Canary Islands featuring prominently among its Spanish winter-sun options.

Tenerife, Lanzarote, Fuerteventura and Gran Canaria included

The company is specifically promoting the Canaries to British travellers looking to escape the UK winter for some sunshine.

These aren't simply destinations listed for future expansion, as package holidays to the islands are already appearing in searches on the platform.

One example highlighted at launch offered seven nights in Puerto del Carmen, Lanzarote, from £311 per person, including flights from London Stansted and apartment accommodation for selected dates in October.

Packages are also being offered to popular resorts including Caleta de Fuste and Corralejo in Fuerteventura, with departures available from different UK airports.

Prices vary depending on travel dates, departure airport, accommodation and board basis, meaning the £311 example is a specific offer rather than a standard price.

What's different from booking with TUI?

One of the biggest differences is that Sundeals isn't restricted to TUI's own flights and holiday inventory.

The platform combines products belonging to the TUI Group with those supplied by other companies. This means a customer could book a Sundeals package through a TUI-owned business but travel to Tenerife or another Canary Island on a flight operated by an airline such as Ryanair or easyJet.

Sundeals is being operated as a separate digital brand and, at launch, TUI has chosen not to sell its packages through traditional travel agencies.

The concept follows research into how European consumers increasingly shop for holidays, with many spending considerable time moving between websites and comparing prices before making a booking.

TUI wants Sundeals to appeal directly to these price-conscious customers rather than relying solely on its more traditional package holiday model.

TUI's new digital brand is called Sundeals (Image: TUI UK)

Packages still have ATOL protection

For British holidaymakers, an important point is that Sundeals packages which include flights come with ATOL protection.

Customers can choose from different accommodation options depending on the hotel, ranging from room-only and bed and breakfast to half-board and all-inclusive holidays.

They can also choose flights from a range of British airports rather than necessarily having to use TUI's own services.

New competition for British tourists heading to the Canaries

The launch is particularly significant for the Canary Islands because the UK remains one of the archipelago's most important tourism markets.

Sundeals effectively gives TUI a second way of competing for British holidaymakers.

Its established TUI operation will continue offering conventional package holidays, while Sundeals targets customers primarily interested in price, choice and flexibility.

For British tourists, the result is another option when comparing the cost of a Canary Islands holiday — and potentially greater competition between holiday companies for those searching for the cheapest trip to the sun.