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Increased demand and rising costs drive higher package holiday prices

Bulgaria and Italy have seen some of the biggest package holiday price rises, while some Spanish destinations such as Ibiza and Tenerife are now cheaper than last year, according to Which? research.

The consumer watchdog analysed the prices for more than 8,000 European holidays, comparing the costs of week-long packages available in January 2024 for an August 2024 departure, with those gathered in January 2025 for August 2025.

On average, holiday prices have risen by 4.2% compared to 2024, with seven out of 10 destinations seeing rises above the overall rate of inflation (2.5%).

Which? said factors contributing to the price rises include continued high demand for holidays, rising energy costs for hotels and higher aviation fuel prices.

The Black Sea coast of Bulgaria saw the highest rises with prices up 11.5% year on year. The average per person package price has risen from £1,038 in summer 2024 to £1,157.

Nonetheless, Bulgaria remains a comparatively good value European holiday destination, noted Which?.


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In Italy, the average cost of a package has risen by 7.4%, taking the average per person cost of a holiday from £1,163 to £1,249.

Portugal saw an average price rise of 6.8%, with the per person cost of a package increasing from £1,267 to £1,353, while prices in Cyprus rose 6.4%, from £1,241 per person to £1,321.

Countries including Croatia, Spain and Greece have also seen prices rise since last summer but at rates below 3% on average.

A few destinations have seen prices fall since last year, most notably Ibiza, where prices have fallen by 6.4% on average from £1,269 per person to £1,187.

Spain’s Costa Dorada has seen prices fall by 2.9% on average from £1,074 per person to £1,042, and holidays to Tenerife are about 2% cheaper, falling from £1,200 to £1,175.

Rory Boland, editor of Which? Travel, said: “While inflation has started to ease over the last year, our latest research has shown holiday prices bucking the trend, with a combination of increased demand, alongside rising energy and fuel costs, contributing to higher prices for holidaymakers.

“Booking early is almost always your best chance of securing the best rate – so now is the best time to get the cheapest prices on summer holidays.

“Take the time to shop around, and if you’re holidaying with kids, consider travelling in the last week of summer holidays, as we’ve previously found this can be the cheapest week in the peak season.”

The prices were sourced from the UK’s two biggest tour operators: Jet2holidays and Tui.

Pictured: Sunny Beach, Bulgaria, by Shutterstock.

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