European Holiday Prices Rise, While Non-European Destinations Become Cheaper
Family holiday costs for popular European destinations like Spain and Greece have increased this August, with data suggesting packages to places like Dubai and Egypt are now more affordable.
The cost of family package holidays to popular European destinations has seen a notable increase this summer, while destinations outside Europe, such as Dubai and Egypt, are becoming more budget-friendly. This shift is attributed partly to a slowdown in bookings for non-European locations, influenced by ongoing global events.
Data from TravelSupermarket indicates that the average cost of a seven-night, all-inclusive family stay in Spain for August has risen by 4% to £1,550 per person. Portugal has seen a 3% increase, and Greece a 5% rise. For a family of four, this could mean an additional cost of up to £160 for a week-long trip to Spain compared to last year, potentially reaching a total of £4,340.
These figures are based on online searches made between April 18 and June 17 for all-inclusive, seven-night family holidays in August. While the data reflects a general trend, actual costs can vary based on specific destinations and booking times.
Flora Badger, who is planning a holiday with three teenage girls, expressed frustration with the fluctuating prices. She initially considered booking in April to avoid peak summer costs but delayed due to concerns about the Middle East situation and the possibility of being stranded abroad. She ultimately booked a trip to Lanzarote for September, citing price as a significant factor.
"Price was a huge, huge issue," Badger stated. "It's very frustrating how much it increases in the school holidays. At the end of the day, they need a treat, we've been saving up for it, they've been looking forward to it, so we're planning on going."
Despite the rising costs for European breaks, car hire prices have reportedly dropped across many popular destinations. Data shows a decrease in average daily car hire costs for August 2025 and 2026 compared to the previous year in countries including Cyprus, Australia, Portugal, Spain, Italy, Greece, the United States, the United Kingdom, France, and Ireland. Globally, the average cost of car hire in August has fallen from £45 to £38 per day.