The allure of package holidays, often perceived as a cost-effective travel solution, is facing a challenge in the post-pandemic era. Despite a surge in popularity, prices for these pre-arranged vacations are experiencing a noticeable uptick, particularly in several sought-after European destinations. This surge is attributed to a confluence of factors, primarily the increased demand from travelers eager to explore the world after periods of lockdown. Furthermore, escalating energy costs, impacting hotels and other hospitality services, and the rising price of aviation fuel are contributing to the overall increase in package holiday prices. This trend challenges the traditional perception of package holidays as a budget-friendly option, forcing travelers to reconsider their travel budgets and potentially explore alternative destinations.
A comprehensive analysis conducted by Which?, a British consumer watchdog, sheds light on the extent of these price hikes. The research, comparing the prices of week-long package holidays in Europe for August 2024 and August 2025, reveals that seven out of ten popular destinations are experiencing price increases exceeding the UK’s overall inflation rate of 2.5 percent. This widespread price surge highlights the growing pressure on the travel industry and the potential impact on consumer affordability. Destinations historically known for their value, such as Bulgaria’s Black Sea coast, are also seeing price increases, albeit remaining relatively more affordable compared to established holiday hotspots like Italy, Greece, and Croatia.
Bulgaria, a rising star in the European travel scene, known for its attractive prices compared to more established Mediterranean destinations, has experienced the most significant price jump. The cost of an average package holiday to this Black Sea destination has risen by 11.5 percent year on year, increasing from £1,038 (€1,238) in the summer of 2024 to £1,157 (€1,380) in the summer of 2025. Though still a relatively economical option, this considerable increase underscores the broader trend of rising prices across the European travel market. The surge in demand for Bulgarian holidays, coupled with rising operational costs, is pushing prices upward, potentially altering its image as a budget-friendly alternative.
Other popular destinations, including Italy, Portugal, and Cyprus, are also witnessing substantial price increases. Italy, renowned for its cultural richness and scenic beauty, has seen a 7.4 percent rise in the average cost of a package holiday, with prices per person climbing from £1,163 (€1,387) to £1,249 (€1,490). Similarly, Portugal experienced a 6.8 percent increase, pushing the per-person cost from £1,267 (€1,511) to £1,353 (€1,614). Cyprus also follows this trend, with a 6.4 percent rise, increasing the cost per person from £1,241 (€1,480) to £1,321 (€1,576). These increases reflect a combination of factors, including heightened demand, inflationary pressures, and rising operational costs for travel and hospitality businesses.
Despite the widespread price increases, not all destinations are following this upward trend. Some popular holiday spots, such as Ibiza, Spain’s Costa Dorada, and Tenerife, are experiencing price reductions, offering a glimmer of hope for budget-conscious travelers. Ibiza, known for its vibrant nightlife and beautiful beaches, has seen a 6.4 percent drop in average package holiday prices, decreasing from £1,269 (€1,513) per person to £1,187 (€1,416). The Costa Dorada, a popular family destination in Spain, offers a 2.9 percent reduction, with prices falling from £1,074 (€1,281) to £1,042 (€1,243) per person. Tenerife, in the Canary Islands, also provides some relief, with a 2 percent price drop, reducing the average cost per person from £1,200 (€1,431) to £1,175 (€1,401). These price decreases suggest strategic pricing adjustments by tour operators to maintain competitiveness and attract travelers seeking more affordable options.
The fluctuating prices across different destinations highlight the importance of careful planning and research for travelers. Booking early, as advised by Rory Boland, editor of Which? Travel, can often secure the best rates. Comparing prices across different providers and considering travel during off-peak seasons or less popular weeks, like the last week of the summer holidays, can also lead to significant savings. Furthermore, being flexible with destination choices and exploring alternatives to the most popular hotspots can open up opportunities for more affordable and equally enjoyable travel experiences. The current market dynamics necessitate a proactive approach to travel planning, requiring travelers to adapt to changing prices and explore creative strategies to maximize their travel budgets.
