Package travel outpacing inflation as prices rise by more than 4% this summer
James ChapplePackages holiday prices are up by more than 4% on average this summer, outpacing the rate of inflation – with some destinations upwards of 10% more expensive than they were last year.
Consumer champion Which? looked at more than 8,000 European package holidays prices in January 2025 for departure in August, and compared this with holidays available in January 2024 for departure in August that year.
It found prices have risen by 4.2% on average year-on-year, with seven out of the ten destinations it looked at experiencing price rises in excess of the current rate of inflation, which is 2.5%.
Black Sea packages to Bulgaria have seen the most significant year-on-year increase, up by 11.5% from £1,038pp to £1,157pp for a week – amounting to a nearly £250 hike for couples. Which? pinned the increase on supply, albeit while stressing Bulgaria continues to be a "comparatively good value" destination.
In Italy, the average cost of a package increased by 7.4 year-on-year, up from £1,163pp to £1,249pp. Which? flagged demand for luxury and trending destinations like Lake Garda and Sorrento, which have seen prices for a one-week trip go up by £94pp and £81pp respectively.
Portugal has experienced a 6.8% increase one-week package prices from £1,267pp to £1,353pp and Cyprus 6.4% from £1,241pp to £1,321pp. Price rises for Croatia and Greece have also outstripped inflation.
However, three of the destinations monitored by Which? – Ibiza, Costa Dorada and Tenerife – have all seen prices go down over the past year, by 6.4%, 2.9% and 2% respectively. A week in Ibiza in August has fallen from £1,269pp to £1,187pp.
"While inflation has started to ease over the past year, our latest research has shown holiday prices bucking the trend, with a combination of increased demand, alongside rising energy and fuel costs, contributing to higher prices for holidaymakers," said Which? Travel editor Rory Boland, who added booking early and travelling during the last week of the summer holidays were the best ways to economise.
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