Still haven't booked this year's summer package holiday? Whether you get a bargain will depend on who loses their nerve first - you or the tour operators still holding on to around two million unsold holidays.

This time last year you would have been hard pushed to find many deals left for the peak holiday month of August. This summer there is still plenty of availability. England's defeat in the World Cup was a godsend for tour operators because sales picked up. But not enough for them to sit back and relax.

Anyone trying to get a £99 deal now for the end of July or August will be disappointed, though. While there are still some bargains to be had before the school holidays begin in the last week of July, prices shoot up as soon as school is out.

Whether peak season prices stay high will depend on holidaymakers holding out for a bar gain. If enough people hold their nerve in the week before the school holidays start, tour operators will start discounting.

Steve Endacott, managing director of travel agent Holidays by Phone, says: 'A large number of people are now happy to book their holidays within eight weeks of departure but that doesn't necessarily mean there will be lots of last-minute deals.' He says the weather will be a key factor in deciding whether holiday prices remain high for the peak season. 'I don't think it's the end of the World Cup that makes people book holidays, it's the weather. If it's still raining in the middle of July then people will remember how unreliable the British weather is and start booking their summer break.'

He advises families tied to school holidays not to leave it too late. 'But if you are flexible on dates and destinations and just want a week in the sun then you can afford to hold out a bit longer.' A spokesman for Thomas Cook says there is still plenty of availability for August. 'This is unusual. Some customers are booking later than we have seen in previous years.'

He adds that there are plenty of holidays left for Spain, the UK's most popular holiday destination, which has been hit by the introduction of the Balearic Islands' eco-tax.

MyTravel, formerly Airtours, says it still has a few free child places left for this summer - something normally unheard of at this time of year. Cosmos has availability at some of its kids' clubs in the Mediterranean.

More information

Thomson Direct (0870 241 3156)
MyTravel (0870 241 5276)
Cosmos (0870 2646100)
Holidays by Phone (0870 3330561)