Holidays up to 70% more expensive amid cost of living crisis
Families could end up paying hundreds of pounds more for their summer getaway compared to last year, a Which? investigation has found.
The price of a package holiday to Spain, Turkey and Italy has jumped by 20% or more since last summer. A week in Greece now costs a whopping 30% more on average.
Flights to popular destinations are up by as much as 71% compared with 2022, while hotel rates have risen above inflation.
Inflation hits package holiday prices
We compared the average cost of a package holiday in six popular destinations and found travellers are paying almost a fifth more on average compared to last year, according to data from Travelsupermarket.com. Getaways to Greece have increased the most: a 7-night holiday this summer costs an average of £867 per person - £200 more than last year.
Huge pent-up demand is driving price hikes - which are likely to continue rising due to inflation. easyJet Holidays told us: ‘With cost pressures coming in lots of areas, sooner or later those costs from our suppliers will have to be passed on to our customers. If you book today, that is the price you will pay. Whereas if you leave it another six months, hotel accommodation and transfer price increases could have hit us.’
Spain was still the cheapest destination overall - despite being 20% pricier than last summer - with a week’s holiday costing £693 on average. Portugal is also a good-value option for 2023 as prices have only risen by 7%.
2022 and 2023 package holiday prices compared
| Destination | Average price of a 7-night holiday in summer 2022 | Average price in summer 2023 | % increase 2022 vs 2023 |
| Spain | £577 | £693 | 20% |
| Portugal | £657 | £705 | 7% |
| Italy | £617 | £758 | 23% |
| Turkey | £660 | £800 | 21% |
| Cyprus | £705 | £809 | 15% |
| Greece | £667 | £867 | 30% |
Table notes: The average increase of a 7-night package holiday departing between July and October. Data from Ice Travel Group, parent company of Travelsupermarket.com.
Rising airfares
Flight prices dropped during the pandemic, but fares began to creep up in 2022 as passengers returned to the skies. When we compared the cost of flying to Spain, Italy, France, Greece and the US this Easter, the average airfare had risen by 51% compared to last year, according to data supplied by airfares analyst Skytra.
Fares to both Italy and Greece have jumped by 71%, while flights to France and Spain are up 45% and 38% respectively. US flight prices have increased by nearly a third, making the average price of an Easter flight over £350 more expensive - £1,527. In total, 63 of the 69 routes we checked had gone up since last year.
High demand isn’t the only reason airfares have risen sharply; jet fuel prices have surged along with oil prices. Last year easyJet, Ryanair and British Airways protected themselves from fluctuating oil prices by hedging their fuel cost (buying in bulk at a fixed price). This saved the UK’s biggest airlines over a billion pounds, but they may have to raise fares or add a fuel surcharge if oil prices don’t fall in 2023.
Our latest guide to the best and worst airlines
High hotel rates
A hotel stay this Easter will also cost more than last year; room rates are up by nearly a fifth in the UK. Hoteliers face spiralling energy and food costs, as well as having to pay higher wages due to staff shortages. A night in a three or four-star hotel this Easter is £119 on average - compared to £100 last year, according to data supplied by comparison site Kayak.
In Europe, the average rate is also £119 - 10% higher than last year. Room rates in long-haul destinations have risen the most: travellers now pay £170 on average - up from £138 in Easter 2022.
How to keep the cost of your holiday down
1. Consider booking early
If you have a specific destination and/or date in mind, then it pays to book as early as possible, especially for this summer while demand is very high. Prices are unlikely to come down and may continue to rise. Some operators only require a small deposit (from £25 a person), but you might still incur fees if you cancel, depending on your operator’s T&Cs. If, however, you are flexible on your dates or your destination, don’t get rushed into booking. While holiday firms often claim the best deals are for early bookers, Which? has tracked deals and repeatedly found half are as cheap or cheaper after the deal ends. There will be deals throughout the year for travellers who are flexible.
2. Avoid surcharges
Package holiday providers can legally levy extra charges if certain costs go up, such as changes in fuel prices. All Which? Recommended Providers have guaranteed not to in 2023 - so choose an operator that won’t impose surcharges.
3. Time your trips
If you’re not tied to the school holidays, you’ll always find the best price/weather combo in the shoulder season: May/June and September/October. We found that a 7-night package at Easter with Tui or Jet2 was at least £300 cheaper per couple on average than in the school summer holidays. A May half-term getaway was £250 less and February half-term was £650 cheaper.
4. Consider all-inclusive
All-inclusive holidays protect food, drink and activity costs against currency fluctuations. Data from Travelsupermarket.com shows Spain and Portugal are also the cheapest destinations for all-inclusive. The average price of a 7-night holiday in Spain, with everything thrown in, was £868 - more than £200 cheaper per person than a week in Cyprus or Italy.
5. Call the hotel direct
Booking sites charge the hotel a hefty commission, so it pays to pick up the phone. When we called hotels in cities as far afield as Tokyo and Sydney, half undercut or matched the cheapest rate online. The best saving was £67 on a night at a luxury hotel in Paris. Even if hotels only match the price, they may throw in a freebie like a bottle of wine or breakfast.
Our research
We compared the average price of non-stop flights to 15 popular destinations in Spain, France, Italy, Greece and the US from six of the UK’s busiest airports. Airfares analyst Skytra shared the average price of airfares three months ahead of Easter 2022 and 2023. Each price is the average of outbound and inbound fares. Median increases are used to summarise 'average' price change.
Comparison site Kayak supplied average hotel rates for one night in a double room in 3 and 4-star hotels during Easter. Ice Travel Group, parent company of Travelsupermarket.com, provided the average package prices for holidays between 1 July and 31 October of each year. We gathered over 13,000 package holiday prices from Jet2holidays and Tui in October 2022.
