UAE and Dominican Republic Lead Drop in 2026 Package Holiday Prices

Package holiday prices for 2026 are showing significant decreases in some popular destinations, with the United Arab Emirates (UAE) experiencing a drop of over 25%, according to data compiled for the BBC by TravelSupermarket. This shift comes as geopolitical conflicts in the Middle East have influenced travel patterns, leading some holidaymakers to seek alternative destinations.

Price Reductions in Key Destinations

The UAE has seen the most substantial price reduction, with the average nightly cost per person for an all-inclusive family holiday in August decreasing from £226 in 2025 to £169 for August 2026. A seven-night package holiday to Dubai, including flights, can now start from £890 per person.

Following the UAE, the Dominican Republic has experienced a significant price drop, with average nightly costs falling from £257 to £228. This destination has reportedly seen increased interest from British tourists seeking alternatives to the Middle East. A seven-night stay at the Live Aqua Beach Resort Punta Cana with flights starts at £1,810 per person.

Mauritius ranks third, with the average nightly cost for an all-inclusive family holiday decreasing from £307 to £273. The island nation, known for its beaches and natural landscapes, offers seven-night packages starting from £1,610 per person, including flights.

Egypt has also seen a notable decrease, with prices dropping from £177 to £162. The country, famous for its ancient sites and Red Sea resorts, offers a week-long all-inclusive stay at the Jaz Bluemarine Resort in Hurghada starting from £702 per person.

Morocco in North Africa is fifth, with average nightly costs for all-inclusive family holidays dropping from £138 in 2025 to £120 for August 2026. Marrakech remains a popular draw, with packages to Agadir starting from £860 per person for a seven-night stay with flights.

Tunisia follows, with prices falling from £127 to £124. Seven-night all-inclusive stays start from £674 per person at the Sentido Marillia Resort and Spa.

Turkey is seventh, showing a slight drop from £162 to £159. Highlights include the Turkish Riviera and Cappadocia, with seven-night breaks in Marmaris starting from £596 per person, including flights.

The Maldives, known for its luxury resorts, has seen a minimal decrease from £369 to £365 per night. Packages for September 2026 start from approximately £506 per night for a Beach Villa on an all-inclusive plan.

Malta rounds out the list, with a slight decrease from £137 to £136. The island offers a range of attractions, including historical sites and beaches, with seven-night breaks starting from £509 per person in August, including flights.

Rising Costs in European Destinations

In contrast to these reductions, several popular European holiday spots have seen price increases. Trips to Spain are up by an average of 3.9%, while prices in Greece have risen by 5.1%, and Portugal by 3%. These increases may reflect sustained demand for traditional European summer destinations.

The data indicates a dynamic market for package holidays in 2026, influenced by global events and evolving consumer preferences.