Package holidays for 2026 are poised to be more affordable in several popular destinations, with the United Arab Emirates experiencing the most significant price drop of over 25%. This trend comes as geopolitical tensions in the Middle East have influenced travel patterns, leading to reduced costs in some regions.
The average nightly cost per person for an all-inclusive family holiday in the UAE has fallen from £226 in August 2025 to £169 for August 2026. This makes destinations like Dubai, known for its beaches, skyscrapers, and theme parks, more accessible. Seven-night package holidays to Dubai's Grand Hyatt Dubai Resort and Waterpark start from £890 per person.
The Dominican Republic ranks second, with prices for all-inclusive breaks decreasing from an average of £257 to £228 per night. This destination has seen increased interest from British tourists seeking alternatives away from the Middle East. A seven-night stay at the adults-only Live Aqua Beach Resort Punta Cana, including flights, is available from £1,810 per person.
Mauritius follows in third place, with the average nightly cost for an all-inclusive family holiday dropping from £307 to £273. The island nation is described as a tropical paradise with beaches, waterfalls, and lagoons. A seven-night package holiday to Friday Attitude in Trou d'Eau Douce, including return flights, starts at £1,610 per person.
Egypt is fourth on the list, with a notable price decrease from £177 to £162 per night. The country offers attractions such as the pyramids and Red Sea resorts like Sharm El-Sheikh. A week-long, all-inclusive stay at the Jaz Bluemarine Resort in Hurghada starts from £702 per person.
Morocco, in fifth place, has seen a slight reduction in average nightly costs from £128 to £120. Popular cities include Marrakech and Agadir. A seven-night break at the Iberostar Waves Founty Beach in Agadir, with flights, begins at £860 per person.
Other destinations showing price reductions include Tunisia (down 2.5%), Turkey (down 1.6%), and the Maldives (down 1.1%). Malta, rounding out the top ten, has seen a minimal drop of 0.9%.
In contrast, some popular European destinations have seen price increases. Trips to Spain are up by an average of 3.9%, Greece by 5.1%, and Portugal by 3%.
TravelSupermarket data compiled for the BBC highlights these shifts, with package holidays being a favoured option for budget-conscious travellers. The ongoing conflict in the Middle East has reportedly deterred some holidaymakers, contributing to the price adjustments in various destinations.