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Cheap Package Holidays

Cheap Package Holidays

Slash costs with late deals and haggling

Sally Francis and Jenny Keefe | Edited by Steve Nowottny

Updated 7 July 2020

Booking a package holiday can slash the cost of going away, particularly if you're heading to a popular beach destination. This guide looks at when's best to book, where to go and how to weigh up if all-inclusive is worth it.

Package holidays & coronavirus

The Foreign Office lifted travel restrictions for dozens of countries in July. However, the warning's been reinstated for Spain (incl Canary & Balearic Islands), and there's a chance other countries could follow. We've been working flat out to answer your questions on travel insurance, cancelling and booking holidays, and much more. See our Coronavirus Travel Rights guide for the latest info.

Should you book now?

There's no getting around it, booking holidays at the moment is risky. If you're going to go anyway, a package – flights, hotels etc in one booking – can be cheapest, but for safety, you need to aim for as much flexibility as possible. Consider booking via an agent such as Hays Travel, which offers no-quibble cancellation up to six weeks before travel on some holidays, or Kuoni which does the same on all holidays (though with any there's always a solvency risk). Yet it's worth noting, package holidays give extra protection if things go wrong versus booking flights and hotel separately.

If you’re OK to go ahead, the rest of this guide includes full help on how to get a good deal, though bear with us on some of the detail given we’re in such a fast-moving travel environment right now.

Haggle down the cost of your holiday
- Benchmark a price for your perfect holiday
  Call up agents and ask 'em to beat it
  Call the tour operator directly
  How much can you save?

The Govt's lifted many restrictions, but reinstated them for Spain - where can you go?

When coronavirus first spread, the FCO began warning against travel to many countries, and between March and July it advised against all but essential travel to ALL overseas destinations. That warning has been lifted for dozens of countries – including France, Italy, Greece and Turkey - but has since been reinstated for Spain, and there's concern that other countries could follow.

FCO advice isn't the only consideration when working out where you can go though. Quarantine requirements for those returning to the UK are an important consideration - those arriving from many destinations must still self-isolate for two weeks, which may make travelling impractical. And it's also important to be aware of other countries' entry restrictions - for example, the FCO has no warning in place for Australia, yet Brits are still not allowed to enter the country.

The situation's changing daily, which makes booking ahead tricky. For full details, see our Coronavirus Travel Rights guide. Plus check our airline-by-airline update for when flights are restarting, and what they're doing to protect passengers (masks, seat gaps etc).

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Package vs DIY holidays

The first thing to decide is whether a 'traditional' package holiday - where you book a ready-made package through a tour operator – is right for you, or if you'd get a better deal with a DIY package, where you book a flight and hotel separately through the same travel site.

As a rough rule of thumb, traditional packages are usually cheapest for seven, 10 or 14 days away in traditional holiday destinations.

If you want to go away for a shorter or longer amount of time, to a less-visited spot, on a city break or multi-stop holiday, it's likely you'll be better off with a DIY package or by booking each part of your break separately through different firms. Read our Cheap Flights, Cheap Hotels and Cheap Self-Catering Holidays guides, as well as Hotel Deals, for more on those.

Package holidays come with added protection – and more travellers now get full cover

Package holidays come with greater consumer protection through ATOL or ABTA. This means that if the travel company fulfilling your booking goes bust, you'll be refunded if you're yet to travel, or found alternative accommodation and flights home if you're abroad, and you're covered if you don't get the holiday you paid for, eg, if an airline goes bust, or bad weather stops you travelling.

For daily updated information on the current situation, see Coronavirus Travel Rights.

The rules around package holiday protection changed in 2018, meaning many more travellers get more coverage.

For bookings made since 1 July 2018, most DIY package holidays bought in the same transaction get the same cover as 'traditional' package holidays – ie, full financial protection (so you're entitled to a refund or be brought home if necessary if the firm organising your package goes bust) AND legal protection (so you're covered if you don't get the holiday you paid for, eg, if a supplier like an airline goes bust, or if bad weather stops you travelling). For more info, see Holiday Rights.

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Package holiday need-to-knows

Here's what you need to know before you look for a cheap package holiday deal:

1. Slash the price using comparison sites, tour operators & flash-sale sites
First, benchmark a decent price on the web. To get an idea of the type of price you should be paying, start by searching the major package holiday listing sites. All the sites below allow you to filter your options and, if you can be flexible, search for dates around the one you want to see if it's cheaper.
First check the top comparison sites. Here are our current top picks:

Kayak* - When we compared prices across different comparison sites, Kayak often came up cheapest, making it a decent starting point when hunting out a bargain. It also lets you filter holidays by star-rating, board and 'freebies' such as parking, internet and airport shuttles.

TravelSupermarket* - Also check TravelSupermarket as it can sometimes beat Kayak's cheapest price. As well as the standard filters, such as board and star-rating, you can filter hotels by TripAdvisor score.

Then it's worth doing some extra checks so you don't miss a bargain:

Expedia can beat comparisons. Although it does feature on comparison sites, we found going direct to Expedia* was sometimes cheaper, so it's well worth checking.

Check flash-sale sites for short-lived deals. You'll need to be ready to pounce for this one, but flash-sale sites offer great deals which beat comparison sites for a short time only. Holiday Pirates is one which has decent deals on holidays, flights and hotels – also check Travelzoo* and Secret Escapes.

Try BA holidays for last-minute flight and hotel deals. Some deals with BA Holidays can work out cheaper than flights alone – great if you can be flexible on dates and destination. It also has a range of filters including average temperature and TripAdvisor ratings which can help narrow down your search.

Traditional tour operators incl Tui and Virgin Holidays. While some traditional tour operators' offers will be included in the comparison sites above, it's worth checking direct as well – the likes of Tui and Virgin Holidays can often have last-minute deals you won't find elsewhere.

Remember, tour operators buy holidays in advance (usually around a year ahead) so they need to shift 'em. If you can be flexible and wait until the last minute, you could bag a real bargain. Plus tour operators' sites sometimes offer extra perks such as upgrades with certain hotels, or early booking discounts.

However, often for the real bargains it's about getting on the phone to late specialist travel agents to see what they can find. And remember tour operators make holidays, travel agents just sell them, so the same holiday can be different prices at different agents. See our holiday haggling tips below.
2. Book late for the best deals...

Booking late is the cheapest way to get a package, and we're seeing a lot of hot bargains right now due to the pandemic. 'Late' usually means no more than 8-10 weeks before departure, when the bargains flood in.

The reason's simple. Tour operators have chartered the planes and reserved the rooms, and, if they don't shift 'em, they lose money. The later you leave it, the more desperate they are to flog empty rooms, so the price drops further.

Yet the later you wait, the more you need to be flexible about dates and destinations. So if creche facilities or a specific hotel are must-haves, be careful.

If you just want anywhere hot and cheap, leave it very late, ie, the week before you go, and you may get elegant trips for dirt-cheap prices.
3. ... or book early for special offers and discounts – great if you need particular facilities
The other way to get discounts is to book further ahead, because many tour operators offer early booking codes or discounts. These can include £100-per-couple discounts or buy-one-get-one-free weeks.

Don't be sucked in by marketing hype – first, use a comparison site to compare costs for the holiday you're after.

'Free' child places

These operators all offer free child places when you book for adults, though availability may be limited:

First Choice – free child's place includes flights, hotel, entertainment and all-inclusive food and drink. You can only get one free child place per two full-paying adults in each hotel room, apartment or villa.

Jet2holidays* – includes flights, check-in baggage, accommodation, coach transfers, food and drink. If your group has two full-paying adults in a hotel room or villa, you'll get one free child place. If you're a family of one adult and two children, one child will be charged the full adult price and the other will have the free child place.

Tui – includes flights, hotel, transfers, food and drink. You can only get one free child place per two full-paying adults in each hotel room, apartment or villa.
4. All-inclusive can be better value

All-inclusive deals typically include all meals, snacks and drinks (though not always alcoholic ones), and sometimes transfers and luggage too – costs which can quickly add up.

According to research by the Post Office in 2019, a family meal out for four (including three courses for two adults, two courses for two children, plus a bottle of house wine and soft drinks) costs around £60 in Costa del Sol – that's as much as £420/week for evening meals alone.

So if you don't mind eating in the hotel it's worth weighing up if you can save by going all-inclusive, factoring in local costs and exchange rates. Sometimes it's only a little more and you can make big savings overall – for example, we found a week in the Canary Islands for a family of four for £570pp (including breakfast), while upgrading to all-inclusive was only £16pp more.
5. The last two weeks of summer can be cheaper but being flexible is key

Take a holiday when others can't, such as travelling before the school holidays in May and June to family destinations such as Florida, and you'll get a better price.

If that's not an option, prices for package holidays usually drop rapidly towards the end of August – this is likely to be because in normal circumstances most people want to go as soon as they can, according to ABTA (the Association of British Travel Agents). And many people don't want to be away the week before schools go back, so if you can leave it to the very last minute you'll likely save.

In July 2019, we checked the prices of 20 different holidays across each week of the summer (for English school hol dates) and found if you wanted to book right away, the key to getting the best price was being flexible with when you go. For example, one seven-day holiday to Greece for a family of four was £753 cheaper booking in the cheapest week - so try not to be rigid.
6. Look for out-of-favour destinations

Heading to once-in-vogue holiday hotspots that are no longer so popular can be a holiday MoneySaver. If demand's off the boil, massive hotels can lie virtually empty.

Where this trick works best often varies year-to-year. For example, a country which has just emerged from recent political instability may represent good value if it's trying to tempt back tourists. Always check the latest Foreign Office guidance before booking though.

The same principle also applies to destinations off the beaten track that aren't popular with the masses yet, though capacity at these may be more limited. Opting for Bulgaria rather than Greece, for example, can help save.

Finally, if you don't fancy a package, city breaks tend to cost less in summer, as cities are less obvious destinations.
7. Package holidays can be cheaper than flights in some cases

If you're going away specifically for seven, 10 or 14 days to a traditional holiday destination, package holidays are often best. They can sometimes be much cheaper than booking a scheduled flight... even if you DON'T want to use the hotel.

Eg, we found flights for a 7-day trip to Florida for £689 per person – a package holiday for the same dates was just £682 per person. It won't always work, but it's worth a try.

This can even work with specific airlines - for example, Virgin told us its package holidays are sometimes cheaper than its flights to the same destination. So if you must fly with a particular airline, it's worth checking the holidays it offers too.
8. A holiday is usually two weeks at most – don't spend all year paying for it

We all deserve a holiday now and then but do remember it's only two weeks a year for most – a holiday you spend the rest of the year worrying how to pay for isn't relaxing, nor helpful for long-term finances.

Try the free Budget Planner for help and to see if you can afford it (it's worth applying the Money Mantras before you book too).

How to haggle down the cost of your package holiday

The most important thing to understand before haggling is:

Tour operators make holidays, travel agents sell 'em.

Admittedly, they're often both subsidiaries of the same company, yet the distinction is crucial. Just as a Game of Thrones DVD is available from different shops at different prices, many different travel agents will try to sell the same tour operator's holiday at different prices. The aim's to find the travel agent who'll sell it to you for the least.

Getting on the phone to agents to haggle used to be a fairly sure-fire way to slice prices - it's got harder, though it's still worth a shot. When we tried with four holidays we failed to get anywhere with three, but did manage to shave £80 off a £1,930 two-week break in Barbados.

Step 1: Benchmark a price for your perfect holiday

The aim's to locate a suitable holiday and grab all the details. First benchmark a decent price online (using the sites listed above). Then, once you've found a holiday you want within your price range, ensure you write down as much info as you can, for example noting meals and transfers, plus the name of the tour operator.

Step 2: Call up travel agents and ask if they can beat the quote you have

Now you've picked a holiday, the aim's to get EXACTLY THE SAME holiday cheaper.

It's worth remembering to stay polite, charming and smiley throughout this, as travel agents don't like the tactic – or us – much.

You'll need to act quickly, as prices and availability change.

To help, we've complied a list of specialist holiday companies and brokers to try.

This list below isn't exhaustive, but it's a good place to start. Note – we don't have specific feedback on how open these agents are to haggling – there's never any harm asking if they can beat a figure you've been quoted, but let us know how you get on in the Holiday haggling forum thread.

TRAVEL FIRM	TEL NUMBER
Away Holidays	0800 408 8000
Balkan Holidays	020 7543 5555
Best At Travel	020 3993 4455
Blueseaholidays	020 3474 3075
Broadway Travel	020 3368 6221
Caribbean Classics	01793 841421
First Choice	020 3451 2688
Holiday Genie	020 3771 3073
Jet 2 Holidays	0800 408 0778
Love Holidays	020 3897 1185
NetFlights	020 3918 4038
Olympic Holidays	020 8492 6868
Perfect Holidays	020 7725 7090
Southall Travel	020 8843 4444
Teletext Holidays	020 7741 1305
Tui	020 3636 1931
TravelSoon	01708 412134
Travel Trolley	020 8843 4400

Try to negotiate in price per person, not total cost, as discounts will seem less to the travel agent.

Then continue the process with a few more, quoting the best price you got (maybe knocking a tenner off to speed things up) and see who can beat it.

Step 3: Call the tour operator directly

Once you've hit the price floor, to be absolutely sure, call the tour operator's own direct booking arm and see if THEY can beat what you've been quoted.

Step 4: Give the first broker the chance to match it

Finally, just to try to be fair, if a travel agent spent a lot of time with you to find the holiday in the first place, why not give them the chance to match – not beat – the price to regain your custom?

Here's how we got on when we gave it a go

We previously tried our own haggle on a two-week all-inclusive break to Cancun in Mexico staying in the five-star Hard Rock Hotel, based on two people sharing. The total cost booking direct with the tour operator was £2,166pp.

We started by checking comparison sites and found the same holiday for £2,045pp – a good start. From there, we called a few different agents all selling the same holiday and put our haggling skills to the test.

The first provider wouldn't budge, but the second offered a £20pp discount – not groundbreaking given the cost of the holiday, but a discount's a discount. So we're now down to £2,025pp.

We tried our luck at one more provider and the tour operator directly but sadly neither would go anywhere near what we were last offered. However, from initially seeing the holiday for £2,166pp, we did save £141pp by comparing then haggling the cost.
Be aware – travel agents don't like this very much

Martin's been showing us how to haggle with travel agents for years and a few years ago presented an ITV Tonight programme, taking a couple of families and showing how much they could save using this technique. While it may be a little old now, the method hasn't changed and it does still work.

Following the show, travel agents vented their spleen – letters were sent and their trade magazine devoted pages to it. Apparently showing people how to cut their costs is 'immoral'. Read their views and Martin's response and his later blog: 'Dear travel agents, I have nothing against you but I won't stay schtum to protect your profits'.

The aim seems to be to persuade us that travel agents have it tough. Yet that isn't enough of a reason for us to hide the fact that haggling with travel agents results in consumers paying less. This is a site for consumers, after all.

To be fair to travel agents, try to minimise the amount of their time you use when originally sourcing the holiday if you're going to buy it cheaper elsewhere anyway. It's one of the reasons we favour phone specialists, who deal with this all the time, over high street agencies.

How much can you save?

Many people have tried our haggling technique with varying degrees of success. If you save 5%, you're doing well – though in some cases it's possible to cut costs by much more.

To inspire you, here are some quotes from the forum:

I wanted to travel to Southeast Asia. I booked a year before the holiday. I visited one firm who said it would be £4,000-£4,500pp. The next travel agent quoted £2,700pp, but I tried one more and got it for £2,200pp. Couldn't get it any less after that, so this is the one I booked the holiday with.
- Cass61

Recently we booked a holiday for a family of four to Florida. Initial quotes were in the region of £5,000-£6,000 for chartered flights, accommodation and car hire. By employing the haggling technique, we managed to get the final price down to just over £2,000 all-in!
- MoneySaver2

Add your success story and read others'. See Holiday haggling feedback.

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