The longer-term answer is yes, but the picture in 2026 is more complicated than a simple across-the-board increase.
Overseas travel is considerably more expensive than it was before the pandemic, while fuel costs, aircraft shortages, environmental charges and limited hotel supply continue to put upward pressure on prices.
However, some European package holidays became noticeably cheaper during summer 2026 as demand weakened and tour operators discounted unsold capacity.
Official ONS figures for July also showed a significant divide between European and long-haul flights. European airfares fell by 4.3% between June and July 2026, while long-haul fares jumped by 31.7%.
So, rather than assuming every holiday will become more expensive, travellers need to consider the destination, departure date, type of booking and how much capacity remains.
Last Updated: 12.09.2026
How Much Have Holiday Prices Increased in 2026?
Over the longer term, holiday spending has clearly moved upwards.
HSBC Asset Management’s analysis, drawing on ONS data, found average spending on an overseas trip had increased from around £670 per person in 2019 to £846, an increase of roughly 30%.
Aviva research has also found that people taking summer holidays can spend close to £2,000 per person, with some households cutting spending on restaurants, leisure and nights out to fund their trips.
Yet current booking prices can move in the opposite direction.
Which? analysed 8,794 package holidays in March 2026 and another set in July, covering holidays departing around the beginning of August. Prices fell in 53 of the 71 European destinations it tracked.
That distinction is important. Long-term holiday costs have risen, but short-term package prices can still fall when tour operators have hotel rooms and aircraft seats left to sell.
Which Holiday Destinations Became Cheaper in 2026?
The July Which? analysis produced several examples of substantial late-booking reductions.
| Destination | Average August Price Per Person | Change From March To July |
| Dalaman, Turkey | £808 | 14% Cheaper |
| Kefalonia, Greece | £829 | 11% Cheaper |
| Costa Dorada, Spain | £832 | 9% Cheaper |
| Gran Canaria | £851 | 14% Cheaper |
| Peloponnese, Greece | £903 | 16% Cheaper |
The Algarve also fell from an average £1,313 per person in March to £1,100 in July for a one-week August package.
This does not mean waiting until the last minute will always be cheaper. These reductions reflected the particular balance between supply and demand in summer 2026.
School holidays, highly popular resorts and limited-flight destinations can still become more expensive as departure approaches.
How To Read Holiday Price Statistics Properly?
Holiday pricing data needs context.
A search-price increase does not necessarily prove consumers are actually paying that amount. Likewise, comparing January booking prices with July prices measures a different trend from comparing the same holiday year on year.
Check:
- What Dates Are Compared: March-to-July price changes are not the same as annual inflation
- What Is Included: Baggage, transfers, meals and airport choices can substantially change the result
- Whether Prices Are Searches Or Bookings: Advertised prices do not always represent completed transactions
- Departure Timing: August school-holiday prices behave differently from October or January travel
This is why broad claims that holidays are simply “15% more expensive” should be treated cautiously unless the methodology is clear.
Why Are Holiday Prices Structurally Higher?
Fuel and geopolitical events matter, but they are only part of the story.
Aircraft Supply Has Not Fully Caught Up
Aircraft manufacturers have spent years dealing with production and supply-chain constraints.
HSBC notes that Boeing and Airbus produced around 1,500 aircraft combined in 2018 and that the years of subsequent undersupply have left aviation capacity tighter than it otherwise might have been.
Production is now recovering, but the missing capacity from earlier years cannot immediately be replaced.
At slot-constrained European airports, airlines are also increasingly using efficient aircraft such as the Boeing 787 and Airbus A350.
They cost less to operate than older four-engine aircraft, but can carry fewer passengers than aircraft such as the A380 or 747. Limited airport slots can therefore restrict how quickly capacity expands.
Carbon Costs Are Increasing
Environmental compliance is another increasingly important cost.
Under the EU Emissions Trading System, free aviation emissions allowances were reduced by 25% in 2024, 50% in 2025 and fully phased out from 2026.
HSBC analysis estimates that emissions-compliance costs across the large European airlines it covers could rise from less than €500 million in 2019 to around €4 billion from 2026.
Sustainable aviation fuel requirements will also affect airline costs over time. These policies do not automatically translate pound-for-pound into higher fares, but they add to the industry’s underlying cost base.
Hotel Supply Is Growing More Slowly
Accommodation prices face similar structural pressures.
HSBC estimates that hotel-room supply across major European holiday markets was growing at roughly 2% to 3% a year before 2020, but that rate has approximately halved since then.
It also found that additional short-term rental supply had largely stopped growing across Spain, Italy, France, Greece and Portugal.
That matters because strong holiday demand is competing for accommodation that is not expanding as quickly.
Can Your Holiday Price Increase After You Have Booked?
Yes, but package holiday companies cannot simply increase a confirmed price whenever they choose.
Under the Package Travel and Linked Travel Arrangements Regulations 2018, an organiser can only make a permitted price increase when the contract allows it and the increase results from specified factors such as fuel or other transport costs, taxes or fees, or relevant exchange-rate movements.
The organiser must explain and calculate the increase and notify the traveller no later than 20 days before departure.
Most importantly, where an increase is more than 8% of the total package price, the traveller must be offered the option to terminate the package and receive a full fee-free refund.
If the contract reserves the right to increase prices for these reasons, it must also provide for a corresponding price reduction where those relevant costs fall.
What Is A Fuel Surcharge?
A fuel surcharge is an additional amount charged to reflect higher transport costs caused by fuel or other energy-price increases.
It is different from dynamic pricing.
If an airline increases the price of a flight before you book, that is normally a change to the fare being offered. A surcharge concerns an additional charge associated with a booking, particularly where package-holiday contractual rules allow a later price adjustment.
Several major travel businesses introduced stronger price assurances during 2026.
| Airline Or Holiday Company | 2026 Position |
| Jet2 / Jet2holidays | Removed its surcharge provision and says the booked price is the price customers pay |
| TUI | Says package holiday prices are fixed with no TUI fuel surcharge added |
| easyJet / easyJet holidays | Confirmed no fuel surcharges for its pre-booked or new summer 2026 bookings |
| Ryanair | Michael O’Leary reaffirmed in September 2026 that Ryanair would not impose fuel surcharges, although normal fares can still rise |
| Trailfinders | States that it has a long-standing no-surcharge policy and that the quoted price is the price paid |
| On the Beach | Offers same-day processing of qualifying package refunds when a flight is cancelled or rescheduled by 12 hours or more |
Policies and booking terms can change, so travellers should still check the terms applying to the individual booking.
Will Flights Be Cancelled Because Of Jet Fuel Shortages?
Higher fuel prices do not automatically mean widespread flight cancellations.
The Department for Transport said in May 2026 that UK airlines were not experiencing a current jet-fuel shortage and there was no general need for passengers to change their travel plans.
The government introduced contingency measures to give airlines more flexibility with airport slots if supply conditions deteriorated.
Around 1,200 UK departing passenger flights were removed from schedules between 3 May and 14 June 2026, according to DfT analysis, representing less than 1% of planned flights during that period.
Geopolitical risks can still alter routes quickly. Travellers going to or connecting through Gulf destinations such as Dubai should check current FCDO advice before travelling.
The also explains how official warnings can affect insurance and travel decisions.
How Can You Protect Your Money When Booking?
Three protections are particularly important.
1. Look For ATOL Protection: Flight-inclusive package holidays sold to UK consumers should generally have ATOL financial protection. Check your ATOL certificate because ATOL primarily protects against the travel organiser failing, rather than acting as general travel insurance.
2. Consider Paying By Credit Card: Section 75 can provide additional protection where the qualifying item costs more than £100 and up to £30,000. Protection can still apply where only the deposit was paid on the credit card.
3. Buy Travel Insurance Early: Taking out appropriate insurance when the holiday is booked can provide broader protection against covered cancellations, medical emergencies and other unexpected events.
Families should also include administration costs in their total travel budget. Changes to show how costs outside flights and hotels can increase the overall price of going abroad.
How Can You Pay Less For A Holiday?
Price alerts from Google Flights, Skyscanner and Kayak can help identify fare movements rather than relying on one search.
Flexible travellers can also compare different UK departure airports, shift their holiday by several days, consider alternative resorts and compare package pricing against booking flights and accommodation separately.
When abroad, choosing to pay in the local currency rather than accepting sterling conversion at a card terminal can avoid poor dynamic currency conversion rates, although your own card’s foreign-transaction charges still need to be checked.
It can also be worth asking hotels whether booking directly provides extras such as breakfast, flexible cancellation or an upgrade. Do not assume that a direct rate is automatically cheaper.
Holiday resale marketplaces such as Transfer Travel may offer discounted bookings from people who can no longer travel, but buyers should confirm that reservations are transferable and understand exactly what consumer protection applies.
UK breaks are not immune from higher costs either. Proposed and existing visitor levies can add to accommodation costs, particularly for families staying several nights.
The debate around shows why local charges should be included when comparing domestic and overseas breaks.
Will Holiday Prices Go Down In 2027?
A large permanent fall cannot be assumed.
Lower fuel prices, more aircraft capacity and weaker demand could produce cheaper fares on individual routes. The summer 2026 package market already demonstrated that oversupply can create substantial last-minute reductions.
However, aircraft constraints, slower hotel construction, carbon-related costs, labour expenses and continuing demand suggest that the underlying cost of holidays may remain higher than it was before 2020.
The more realistic outlook is therefore volatile pricing rather than continuously rising prices. Some routes and destinations will fall sharply while constrained destinations and peak travel dates remain expensive.
Conclusion
So, are holiday prices going up? Compared with pre-pandemic levels, the answer is clearly yes. Overseas travel spending has risen substantially, and structural pressures in aviation and accommodation make a full return to old prices unlikely.
But that does not mean every holiday is becoming more expensive in late 2026. European package prices fell substantially in many destinations during the summer, while long-haul flights experienced much stronger inflation.
For travellers, flexibility now matters almost as much as booking early. Compare destinations, monitor live prices, understand surcharge terms and make sure the booking has appropriate financial protection before paying.
FAQs
Can My Holiday Price Increase After I Have Booked?
A package price can only be increased in limited circumstances allowed by the contract and package-travel regulations. An increase must be notified at least 20 days before departure.
What Happens If My Package Holiday Price Goes Up By More Than 8%?
You must be given the option to terminate the package without a termination fee and receive a full refund.
What Is A Holiday Fuel Surcharge?
It is an additional charge related to increased transport or fuel costs. It is different from a normal fare increasing before you make the booking.
Are Package Holidays Getting More Expensive In 2026?
Not uniformly. Long-term costs are higher, but Which? found that August package prices fell between March and July 2026 across 53 of 71 European destinations it monitored.
Will My Flight Be Cancelled Because Of Fuel Problems?
Higher fuel prices alone do not mean your flight will be cancelled. Government guidance said UK airlines were not experiencing a general jet-fuel shortage when its advice was last updated in May 2026.
Is It Better To Book A Holiday Early Or Last Minute?
Early booking offers certainty for popular dates and destinations, while last-minute discounts can appear when operators have unsold capacity. Summer 2026 produced unusually strong late deals in several European destinations.
Are Holiday Prices Likely To Fall In 2027?
Some fares and packages may fall, but long-term pressures from aircraft capacity, accommodation supply and environmental costs mean a broad return to pre-pandemic pricing should not be assumed.
