According to TravelSupermarket data, Crete experienced the highest increase at 25%, followed by Tenerife at 22%, and Mallorca at 21%
The cost of package holidays to popular Mediterranean destinations like Mallorca and Crete has significantly increased, rising by up to 25% in comparison to last year. This surge in prices is driven by high demand and increased costs for travel providers.
TravelSupermarket reports that all-inclusive deals for the most sought-after destinations among British holidaymakers, including Spain, Turkey, Greece, Portugal, and Cyprus, have risen by nearly 12%.
Data from the price comparison site, first disclosed by the BBC, indicates that the average price across the top five Mediterranean destinations has climbed by over 30% compared to pre-Covid-19 pandemic levels, significantly exceeding the inflation rate since 2019.
The surge in demand from travelers is surpassing the available supply, and this, along with steep food price inflation, increased fuel and wage expenses, is contributing to the overall rise in holiday prices.
According to TravelSupermarket’s CEO, Richard Singer, the travel industry has experienced several years of disruptions, leading to a pent-up demand for holidays as people eagerly seek to book their well-deserved getaways. Additionally, the global inflationary pressures have further driven up holiday prices for certain destinations.
For instance, a week-long stay with full food and board in Mallorca now costs 21% more than the previous summer, while prices for Tenerife have risen by more than 22%. The Greek island of Crete has seen an even more significant increase, with prices up by 25% compared to last year.
Although some individuals might consider waiting for better last-minute deals, Springer warns that this strategy may not be effective this summer due to the exceptionally high demand, making it unlikely that prices will see substantial reductions.
According to him, prices for the upcoming year are expected to be similar to this year’s rates. Nevertheless, there are still excellent holiday deals available, especially if you can be flexible with your travel dates, duration, or consider trying new destinations like Turkey, which continues to offer great value.
Victoria Scholar, the head of investment at interactive investor, noted that travel businesses have been raising prices in an attempt to counter the impact of cost inflation, including rising wages, fuel, food, and beverage expenses. Surprisingly, consumer demand has remained strong despite these price increases, as individuals and households prioritize their summer vacations while cutting costs in other areas.
She further mentioned that families seem to be increasingly opting for package holidays as a more affordable option to travel abroad amid the ongoing cost of living crisis. However, the price advantage that these package deals were traditionally known for seems to be diminishing.
The cost of package holidays has seen the highest increase in Spain, rising by 14%, whereas in Portugal, the increase has been comparatively lower at 5%.
Here are the average cost per person for a seven-day family package holiday in August 2022 compared to August 2023:
- Spain: £808 to £926 (a 14% increase)
- Portugal: £949 to £1,000 (a 5% increase)
- Turkey: £904 to £991 (a nearly 10% increase)
- Greece: £974 to £1,098 (a near-13% increase)
Even all-inclusive deals outside the Mediterranean have experienced price hikes:
- Bulgaria: £746 to £842 per person (a nearly 13% increase)
- Mexico: £1,656 to £1,782 on average (a 7.6% increase)
However, there is some good news when it comes to car hire, as TravelSupermarket figures show that car rental prices have actually dropped since last summer.
