Key facts
- Package holidays to Dubai and Egypt are cheaper this summer, with prices dropping by up to 25% for Dubai and 8% for Egypt.
- European destinations like Spain, Portugal, and Greece have seen price increases of 3-5% for package deals.
- Concerns over geopolitical instability in the Middle East, including the war in Iran, are deterring some travelers.
- Tour operators are cutting prices to destinations like Morocco, Tunisia, and Turkey to attract customers.
- The cost of hiring a car has decreased across popular destinations compared to last year.
Package holidays to destinations such as Dubai and Egypt are becoming more affordable this summer, with prices dropping significantly compared to last year. This trend is attributed to tour operators reducing costs to attract travelers who are hesitant to visit areas near geopolitical conflicts, particularly in the Middle East. Data indicates that average all-inclusive seven-night family stays in the UAE have fallen by 25% for August, while Egypt has seen an 8% decrease.
Conversely, the cost of package deals to popular European destinations like Spain, Portugal, and Greece has risen by 3-5%. For instance, an average seven-night family stay in Spain this August is up 4% to £155 per person, potentially costing a family of four up to £160 more than last year.
Concerns over the war in Iran and potential fuel shortages have made some holidaymakers wary of travelling to the Middle East or even further afield. One family cancelled a planned Dubai holiday and opted for Mexico instead. Tour operators have also cut prices for holidays to Morocco (down 6.5%), Tunisia (down 2.5%), and Turkey (down 1.6%).
Despite price increases for European holidays, some travelers are still booking, albeit with adjustments. One individual expressed frustration over fluctuating prices but eventually booked a trip to Lanzarote in September. Additionally, the cost of hiring a car has dropped across many popular destinations, making it a more economical option than airport transfers for some families.
Travel agents report an increase in bookings following a ceasefire agreement between the US and Iran. Holidaymakers are also adapting by shortening their trips, with eight to ten-night stays becoming more common than two-week holidays. Destinations like Montenegro, Malta, and Madeira are gaining popularity as travelers seek better value.