Package holidays to Dubai and Egypt get cheaper as European prices creep up

Package holidays to Dubai and Egypt get cheaper as European prices creep up

Flora Badger is planning a special holiday this summer, taking three teenage girls on their first trip abroad. She reached out to BBC Your Voice to express her frustrations about the constantly changing holiday prices. Originally, Flora thought about booking in April to avoid the high costs associated with the summer season. However, concerns about the conflict in the Middle East and the possibility of being stranded overseas made her hesitate. Ultimately, she chose to book a trip to Lanzarote, Spain for September.

Flora highlights the challenge of rising costs during school holidays, saying, “Price was a huge, huge issue. It’s very frustrating how much it increases in the school holidays.” Despite the financial strain, she is determined to give the girls a much-needed treat, explaining, “At the end of the day they need a treat, we’ve been saving up for it, they’ve been looking forward to it, so we’re planning on going.”

Data from TravelSupermarket shows that while the rapid price surges for European holidays may be slowing, costs continue to inch upward. This August, the average cost of an all-inclusive, seven-night family holiday to Spain has increased by 4%, reaching £155 per person. Prices for vacations in Portugal and Greece have also risen by 3% and 5% respectively. Depending on the day of travel, a family of four could end up spending as much as £160 more on a trip to Spain compared to last year, with total costs potentially hitting £4,340.

The pricing trends mentioned are based on searches conducted on TravelSupermarket between 18 April and 17 June, comparing all-inclusive, week-long family holidays for August 2025 and 2026. Costs vary widely depending on the destination and booking time. One positive note for travellers like Flora is the drop in car hire prices across popular destinations compared to last year, which may help offset some other expenses.

In the travel industry, Richard Slater, managing director of Henbury Travel Limited in Macclesfield, has noticed an increase in bookings following the recent ceasefire agreement between the US and Iran. He shares, “Over the last week, we’ve done about a month’s worth of bookings. That’s a mix of last-minute bookings to the Mediterranean, and we’re also seeing significant cruise bookings.” According to him, customers have been adjusting to rising holiday costs by shortening the length of their trips. “Two weeks used to be the mainstay when we started 40 years ago, and now, you could count on two hands the number of two-week beach holidays we sell. It’s more like eight, nine and 10 nights, and then they might take a city break for two or three nights as well.”

Additionally, Slater notes that holidaymakers are shifting their destinations as they look for better value, with places like Montenegro, Malta, and Madeira gaining popularity. This trend reflects a wider change in travel habits as families balance budgets with their desire for a getaway

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