Package Holidays Defy Inflation, Offering Savings Up to £258
While headlines have been dominated by soaring flight prices in recent days, not all holiday costs are following the same upward trajectory. In a surprising twist, one key travel option is actually cheaper than it was a year ago, providing a welcome respite for budget-conscious Brits.
Holiday Prices Buck the Trend
Package holidays are resisting Britain's broader inflation trend, with holidays now averaging £110.67 cheaper than they were twelve months ago. This comes as travel experts urge consumers to book summer flights now to avoid escalating prices, partly driven by the economic impact of the Iran conflict.
This week, the Consumer Price Index (CPI) is expected to rise, yet according to leading package holiday provider On the Beach, holidays departing in May, June, and July are nearly 10 per cent cheaper than last year. The company price-matched 11,500 deals in April for departures within the next three months, revealing these significant savings.
Caspar Nelson, a holiday expert at On the Beach, commented: 'Every day prices seem to be going up—petrol, energy, and mortgages to name a few—but in April, deals for holidays departing in the next three months are cheaper than last year. This is a rare, sunny spot for consumers right now, and our advice is quite simple: now is the right time to book and lock in your price, take advantage of these deals while they are still working in your favour.'
Substantial Savings Across Popular Destinations
According to On the Beach, 69 per cent of holidays are currently cheaper than last year, defying the recent trend of increasing costs. The data was gathered by comparing current April deals with the exact same holidays from a year ago, including identical flights, hotels, board basis, hold bags, and passenger numbers.
Thousands of deals showed reductions, with notable savings in destinations like Turkey, Egypt, the Canary Islands, and Spain. The biggest saving compared to last year was for deals to Turkey in May, averaging 16 per cent cheaper. Egypt and Spain followed closely, with May deals up to 13 per cent cheaper. Turkey and Egypt also remained low for June and July, with holidays averaging 9 per cent less than the same deals last year.
Specific examples highlight these savings:
- A seven-night, all-inclusive stay at the five-star Solivia Hotel in Antalya, with flights from Birmingham on 8 May, costs £770 for two adults—£128 cheaper than last year.
- A seven-night, all-inclusive stay at the five-star Swandor Topkapi Palace in Antalya, with flights from Birmingham on 3 May, costs £1,140 for two adults—£215 cheaper than last year.
- In Greece, a seven-night, all-inclusive stay at the five-star Mythos Palace Hotel in Corfu, with flights from Birmingham on 14 May, costs £964 for two adults—£258 cheaper than last year.
- A seven-night bed and breakfast stay at the five-star Mediterranean Palace Hotel in Tenerife, with flights from London Stansted on 6 May, costs £1,170 for two adults—£181 cheaper than last year.
Contrast with Rising Flight Costs
These package holiday savings stand in stark contrast to the broader travel market. Airline tickets for long-haul flights have reportedly risen by an eye-watering £300, and experts warn that short-haul flights to Mediterranean destinations could increase within weeks.
Ongoing global uncertainty and recent constraints on fuel supply have pushed up jet fuel costs, contributing to rising flight prices. While oil prices fell briefly last week after Iran announced the Strait of Hormuz was 'completely open', Tehran has since declared the crucial waterway shut again due to what it describes as a US naval blockade of its ports.
Flight Centre's booking data shows eastbound fares to Asia and Australia have risen significantly by 29 per cent, while westbound routes to North America, the Caribbean, and Mexico have increased by 5 per cent. Additionally, winter bookings for Australia are already up over 20 per cent, indicating sustained demand in other travel segments.
For consumers seeking a fuss-free break, package holidays now offer not only convenience but also a cheaper alternative, making this an opportune moment to secure summer getaways before potential price hikes.
