Cheap package holidays

Package holiday need-to-knows

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

1. Package holidays give greater protection

   A 'traditional' package holiday – where you book a ready-made package through a tour operator – can offer more protection than a DIY package, where you book a flight and hotel separately.

   For example, as the pandemic unfolded in 2020, travellers who'd booked flights and hotels separately found it harder to get refunds from airlines when holidays were cancelled, because the flight itself was still running. Those who'd booked package holidays generally found it easier to get refunds, due to package travel regulations.

   

   Package holidays come with greater consumer protection through the ATOL (Air Travel Organisers' Licensing) scheme or ABTA, the travel association.

   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. You're also covered if you don't get the holiday you paid for, for example if an airline goes bust, or bad weather stops you travelling. 

   What's more, most DIY package holidays bought in the same transaction now get the same cover as 'traditional' package holidays. The rules on this changed in 2018 – here's how package holiday protection now works:

   • Traditional package holidays - and most DIY packages bought in the same transaction - get FULL protection. This includes financial protection (so you're entitled to a refund or to 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 – for instance, your hotel is overbooked or promised facilities are missing). 
     

     For years, only holidays from travel agents sold in one go as a ready-made package were protected. But with the rise of online bookings, this has been gradually extended – and since July 2018, you're fully protected if you create a package by selecting elements separately via the same website (or shop or call centre) and then buy them in the SAME transaction.

   • DIY packages where you buy elements in separate transactions but in the same website visit get LIMITED protection. Under the current rules, this is what's technically known as a 'linked travel arrangement' – it applies if you buy the different elements separately in multiple transactions, but in the same visit to a website or shop, or in the same telephone call (for example, if you book and pay for a flight, then go on to book a hotel on the same site).

     If this is how you booked, you'll get the financial protection above, but not the legal protection. 

   • Other DIY packages don't get this protection. So if you book another kind of DIY package, or the different elements of your holiday with different providers, you won't be covered.
     

     Crucially, ABTA (the Association of British Travel Agents) says this means a few now get LESS protection than they used to – until July 2018, DIY packages booked from the same site within 24 hours gave you ATOL protection, but unless you book in the same website visit that now isn't the case.

   Travel firms are now required to tell you upfront if you're buying a 'package holiday' or 'linked travel arrangement' – so if in doubt, check before you buy. See Holiday rights for more info.

2. Package holidays can also be MoneySaving, depending on the type of holiday you're after

   Package holidays are often the cheapest way to travel to certain destinations, though it's always worth comparing costs with a DIY break.

   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 booking each part of your break separately through different firms.

   Read our Cheap flights, Cheap hotels and Cheap self-catering holidays guides for more on booking a DIY break.
   

3. 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:

   • Ice Lolly, another comparison site, lets you filter by type of holiday (romantic, family, beach etc), temperature range and maximum flight time. If you haven't decided where you want to go, Ice Lolly can be a useful starting point.
     

   • 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. (Be aware that Travelzoo is no longer free to join – it now costs £30/year.)  

   • 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. 

   • Check 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.

4. Usually, it's best to book late for the best deals...

   

   Booking late is normally the cheapest way to get a package. This 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. 

   We went last August, booked 3 weeks before we went through the TUI website. £750 each (2 adults, 2 children) for 7 nights, stayed in a Universal Hotel, included flights and transfers from Manchester. Love a last minute holiday.

   Peach Kyme, via Facebook

5. ...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 and free kids' places are not available on every holiday:

   • First Choice – free child's place includes flights, transfers, hotel, entertainment, 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.

   • 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.

6. 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 2024, a three-course family meal out (including wine and soft drinks) costs around £56 in Corfu – that's as much as £392 a 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 £570 per person (including breakfast), while upgrading to all-inclusive was only £16 per person more.
   

7. The last two weeks of summer can be cheaper

   Generally if you can take a holiday when others can't (such as travelling before the school holidays in May and June to family destinations such as Florida), 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 most people want to go as soon as they can, according to ABTA. 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.

8. Look for out-of-favour destinations – but check Foreign Office guidance before booking

   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 that aren't as popular with the masses yet, though capacity at these may be more limited. Opting for Bulgaria rather than Italy, 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.

9. 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.

   For example, we found flights for a seven-day trip to Florida for £689 per person – a package holiday for the same dates was just £662 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.

10. 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 them.

Admittedly, they're often both subsidiaries of the same company, yet the distinction is crucial. Just as the same Samsonite suitcase 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. In the past, when we tried with four holiday companies we failed to get anywhere with three, but did manage to shave £80 off a £1,930 two-week break in Barbados.

This MoneySaver had success with haggling:

It's well worth a shot, therefore. Let us know how your holiday haggling attempts have gone by adding to the X/Twitter thread. 

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

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?

Be aware – travel agents don't like this very much

Martin's been showing us how to haggle with travel agents for years and, about a decade 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 (though be aware they're several years old):