Dreaming of a summer getaway to sunny Spain, the beaches of Cyprus, or the vibrant resorts of Turkey? You’re not alone, but booking that family package holiday from the UK is likely costing significantly more this year. Fresh analysis reveals a sharp jump in prices for popular destinations, forcing many travellers to rethink their plans and search harder for value. This rise impacts families looking for all-inclusive week-long breaks during the peak August season. Understanding why costs are increasing and how others are adapting is key to navigating the challenging holiday market this year.
UK Holiday Price Jumps Revealed
Recent figures compiled for the BBC by TravelSupermarket highlight the scale of the price increases. The data compares online searches for all-inclusive, seven-night family holidays from the UK in August 2024 versus August 2025. While costs always vary, this snapshot shows a clear upward trend for major hotspots.
Cyprus has seen one of the most significant jumps. The average price for a week there in August rose by a substantial 23%. This means a holiday that cost around £950 per person last year is now averaging £1,166. This makes Cyprus the destination with the second biggest proportional rise among those highlighted.
Even more dramatic is the increase for holidays to the United Arab Emirates (UAE). While ninth in search popularity, the UAE experienced the largest price jump among the top searched countries. Trips there are up a staggering 26%. An average August 2024 price of £1,210 per person has surged to £1,525 this year.
The top five most-searched destinations for UK travellers are Spain, Greece, Turkey, the UAE, and Portugal. Unfortunately for budget-conscious families, all of these destinations have recorded price increases for summer 2025 holidays. Exact percentage rises for Spain, Greece, Turkey, and Portugal weren’t detailed in the specific data breakdown provided, but the trend is clear.
Amidst the widespread rises, there are a couple of bright spots among the top 10 most-searched countries. Italy and Tunisia stand out as exceptions. Prices for holidays to Italy have actually dropped by 11% compared to the previous year. Tunisia also offers slightly better value, with prices down by 4%. This makes them potentially more affordable alternatives for those seeking a summer escape without the surging costs seen elsewhere.
Why Are Holiday Costs Rising So Much?
Industry experts point to several factors contributing to the escalating cost of holidays. It’s not simply a case of airlines or hotels trying to increase profits arbitrarily. Julia Lo Bue-Said, chief executive of the travel agent industry group Advantage Travel Partnership, explains that these increases largely reflect the broader cost of doing business in the travel and hospitality sectors.
Higher operational costs are impacting businesses across the board. Hotels face increased energy bills to power their facilities, especially crucial in warmer climates requiring air conditioning. Restaurants and catering services are grappling with elevated food costs, which directly impacts the price of all-inclusive packages. Furthermore, rising wages across the hospitality sector, from hotel staff to resort workers, contribute to the overall expenses. These combined pressures mean that travel companies and accommodation providers need to charge more simply to keep pace with their own expenses. The price hikes seen by holidaymakers are, in effect, passing on these unavoidable increases in the supply chain and operating environment.
How Holidaymakers Are Adapting to Higher Prices
The reality of rising holiday costs is changing how many UK families approach booking their summer breaks. Travel agents are observing distinct shifts in consumer behaviour as people try to mitigate the impact on their wallets. One common strategy is opting for shorter holiday durations. Luke Fitzpatrick, a travel consultant in Liverpool, notes that many clients who booked 10-night trips last year are now choosing shorter stays, such as four or seven nights, simply to reduce the total cost of the package.
Another tactic gaining popularity is travelling mid-week. Flights and accommodation are often cheaper during the week compared to peak weekend departures and arrivals. Shifting travel dates by just a couple of days can sometimes unlock significant savings. Flexibility with dates is a major advantage in the current market.
The trend towards booking closer to the departure date is also accelerating. Major operators like Jet2 have reported strong sales driven by last-minute getaways, confirming that this isn’t just anecdotal. People are waiting longer, perhaps hoping for late deals, or simply making decisions later in the year. Travel agents describe customers arriving with suitcases, hoping to depart within a day or two. While potentially risky, this approach can sometimes yield unexpected bargains for those with the flexibility to drop everything and go.
Individual travellers are also employing personal strategies. One holidaymaker shared her method of booking a year in advance and saving gradually, a traditional approach to managing large holiday expenses. Another highlighted that even all-inclusive felt “not cheap” despite being perceived as more manageable for budgeting. Extreme bargain hunting is also common. One dedicated traveller spends thousands of hours searching online and finds that booking closer to the date can sometimes be cheaper, contradicting the usual advice but reflecting her experience. She also shares practical budget tips like mastering packing light to avoid luggage fees and prioritizing the cheapest flight times, often early morning, late night, or mid-week.
Interestingly, despite the overall pressure on budgets, there is still evidence of a segment of the market willing to spend. Julia Lo Bue-Said notes that some holidaymakers are upgrading their trips. This includes booking more premium all-inclusive packages or opting for more expensive cabin seats on long-haul flights to destinations like Dubai. This suggests a divergence in the market, where some are cutting back while others with disposable income are still splashing out on luxury experiences.
Industry Trends and What They Mean for You
The travel industry is navigating a complex landscape of high demand meeting rising costs. Despite the cost-of-living pressures felt by many UK households, the desire for overseas holidays remains strong. Jet2’s recent performance underscores this, with the company reporting record passenger numbers and significant revenue growth, partly fuelled by robust last-minute bookings.
The industry is adapting to the trend of later bookings, which provides strong current trading figures but reduces visibility for future seasons. This late booking behaviour observed by agents aligns with the operational reality faced by companies like Jet2. While the overall outlook remains positive for the industry, the late booking trend makes forecasting more challenging. For consumers, this means that while traditional advice often favours booking early, waiting longer might sometimes present opportunities, though it carries the risk of limited availability and potentially higher prices if demand outstrips supply closer to the date. The market is dynamic and requires savvy navigation from holidaymakers.
Practical Tips for Finding Value
With popular holiday destinations becoming pricier, finding an affordable getaway requires smart planning and flexibility. Here are some actionable tips:
Be Flexible with Dates: Avoid peak school holidays if possible. Travelling even a week before or after the absolute peak can make a significant difference. Mid-week departures are often cheaper than weekends.
Consider Shorter Stays: If a 10 or 14-night break is too expensive, price up 7-night or even 4-night trips. A shorter escape is better than no escape.
Explore Alternative Destinations: While Spain, Cyprus, and Turkey are popular, destinations like Italy and Tunisia are currently seeing price decreases according to the data. Look into other less traditional spots that might offer better value.
Use Price Comparison Sites: Tools like TravelSupermarket (the source of the data!) allow you to compare prices across different operators and dates quickly. Cast a wide net in your search.
Book Strategically: There’s conflicting advice here. Booking far in advance can secure a price and offer peace of mind. Booking last-minute can yield deals if you are flexible, but it’s a gamble. Consider if securing the trip is more important than chasing a potential last-minute discount.
Think Beyond All-Inclusive: While convenient, all-inclusive packages have seen significant increases due to food and energy costs. Price up self-catering or half-board options and factor in local meal costs to see if there are savings.
- Pack Light: Airline luggage fees add up. Mastering efficient packing to travel with just carry-on can save a considerable amount per person.
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Frequently Asked Questions
Why have UK package holidays to Spain, Cyprus, and Turkey become more expensive?
According to industry experts, the main reason is rising operational costs for travel companies and hospitality businesses. This includes higher energy bills for hotels, increased food costs impacting all-inclusive packages, and rising wages for staff in resorts and destinations. These increased expenses are being passed on to consumers through higher holiday prices to maintain profitability.
How are UK holidaymakers trying to save money on summer vacations?
Many UK travellers are adapting their plans. Common strategies include booking shorter stays (e.g., 7 nights instead of 10 or 14), travelling mid-week instead of at weekends when prices are often higher, and waiting longer to book in the hope of securing last-minute deals. Some are also rigorously searching for bargains across different sites and using practical tips like packing light to avoid luggage fees.
Which holiday destinations from the UK have seen prices fall?
While many popular destinations have seen prices increase, data based on TravelSupermarket searches for August 2025 compared to 2024 shows that Italy and Tunisia are exceptions among the top 10 most-searched countries. Holidays to Italy saw an average price drop of 11%, while Tunisia experienced a 4% decrease. These destinations may offer better value for budget-conscious travellers this summer.
Navigating the 2025 Holiday Market
Rising holiday costs are a significant challenge for UK families planning their summer getaways, particularly for destinations like Spain, Cyprus, and Turkey. The increases are driven by real-world operational expenses within the travel sector. However, demand for overseas trips remains high, and travellers are finding creative ways to manage budgets, from shorter breaks and mid-week travel to intense bargain hunting and strategic packing. While prices may be up, a combination of flexibility, smart searching, and considering alternative destinations can still help unlock a well-deserved and enjoyable summer holiday.
