Are holiday packages cheaper? | goodtogoinsurance

With travel costs rising, today’s travellers face a dizzying choice: stitch together flights, hotels, and activities yourself, or let a tour operator bundle it all into a neat package. The common perception is that packages save money, cut faff, and reduce planning stress and they often do - but not always. DIY bookings can unlock sharper flight deals, quirky stays, and tighter control over your budget.

This article breaks down when package holidays are likely to be cheaper and when they’re not. You’ll get a balanced, UK-focused view using real-world inclusions, industry guidance, and traveller considerations so you can make the smartest call for your next trip.

What is a package holiday?

In UK terms, a package holiday is when you buy two or more different travel services (e.g., flights + accommodation, or accommodation + car hire) for the same trip, sold together for one price and lasting at least 24 hours or including an overnight stay. Typical inclusions are flights, accommodation, transfers, and often checked baggage; some packages add meals, excursions or car hire. 

UK packages that include a flight must be ATOL-protected. What is ATOL protection: If the provider goes bust, ATOL covers refunds before travel and repatriation if you’re already away. Independent flight/hotel DIY bookings aren’t automatically covered in the same way.

ABTA is a trade body and protection scheme that covers non-flight packages (e.g., rail/coaches/cruises) sold by ABTA members and provides a code of conduct and dispute routes. 

Popular UK package providers:

TUI, Jet2holidays, easyJet holidays, British Airways Holidays, On the Beach, First Choice and others sell ATOL-protected packages. Jet2holidays, for instance, highlights that standard packages include 22kg hold baggage and return transfers.

How package holidays claim to save you money

Tour operators contract hotel rooms and seats in bulk, then price the bundle. This scale allows negotiated rates you typically can’t get piecemeal - a point many operators state explicitly in their T&Cs. 

Many mainstream packages add in checked bags and airport transfers, which DIY bookers often pay extra for. Jet2holidays includes 22kg hold baggage and return transfers as standard on many packages. 

Operators run flash sales, “free child places,” and late deals on unsold allocations - all can undercut DIY for popular sun routes. 

One booking, one payment schedule, one point of contact. That saves time and reduces costly errors (wrong dates, wrong airport, missed transfer), which is real money if plans go awry.

When package holidays might not be cheaper

Hidden or extra costs. Watch for resort fees, premium seat selection, or baggage policies on specific brands. For DIY flight-only, adding hold bags can be significant (easyJet lists 23kg hold bags as an extra; price varies by route and timing). 

Off-season or niche trips. On quieter dates or to lesser-known spots, building your own can snag cheaper boutique stays or low-fare flights that packages don’t feature prominently.

Packages can be cheapest late (as operators clear stock), whereas flights alone often reward booking earlier. That mismatch means DIY can win if you pounce early on flights and pair them with flexible hotels. 

Limited flexibility. Package flight times and durations (e.g., 7/10/14 nights) may not match your ideal schedule. If you value specific times, cabin bags only, or micro-stays, DIY may fit better.

Package holidays vs. booking separately: cost comparison

Below is a worked method showing how the totals differ once you include common extras. Numbers change daily, but the inclusions are stable. Snapshot assumptions use current policy pages (baggage/transfer inclusions) checked 21 August 2025.

Route & dates: London to Spain for 7 nights in a mid-range hotel, 2 adults.

London Stansted to Melia Costa Del Sol, Torremelinos – Board basis half board.

Total cost – package holiday: £2844 * Price breakdown appendix 1 including luggage
Total cost - independent: £2431.96 * Price breakdown appendix 2 excluding luggage

Why this matters in pounds: adding one 23kg bag each or 10kg hand luggage each can push DIY flight costs up noticeably. 

Tip: Some British Airways Holidays bundles (flight + hotel or car) occasionally price cheaper than BA flight-only, so even if you only need the flight, it’s worth checking the package tab. 

Watch out for holiday booking fraud. UK consumers lose millions each year to fake deals and clones of real brands. Stick to well-known providers, verify ATOL numbers, pay by credit card, and be wary of bank-transfer discounts. 

Other factors to consider beyond price

Protection & peace of mind. ATOL secures your money and repatriation if a flight-inclusive package collapses. ABTA membership supports standards and complaints processes, especially on non-flight packages. DIY trips lack this single umbrella. 

One point of contact. If schedules change or there’s a strike, a tour operator can re-accommodate the whole trip. With DIY, you juggle multiple suppliers.

Time saved. Less research and booking admin; instalment payments and clear cancellation terms can help cash-flow.

Control & customisation. DIY wins if you want exact flight times, hand-luggage-only fares, boutique stays, or unusual durations.

Tips for finding the best deal

• Cross-shop like for like. Price the same dates and hotel as a package and as DIY (flight + hotel + transfers + baggage). Use comparison tools for both: TravelSupermarket, Skyscanner, and brand sites. 
• Try different UK airports. A nearby regional base (e.g., Jet2holidays fly from 13 UK bases) can change flight prices and availability. 
• Hunt flash sales & family promos. Look for “kids go free” and seasonal offers on operator sites. 
• Board basis matters. Run the numbers for self-catering vs half-board vs all-inclusive; packages often show a small step-up for meals that can be good value.
• Mind the extras. Check airline baggage fees and seat-selection costs; a bargain flight can stop being a bargain once you add them. 
• Safety first. Book with ATOL-licensed firms, check the ATOL certificate is issued after paying, and beware of unsolicited “too-good-to-be-true” offers. 

The verdict: are package holidays cheaper overall?

Sometimes yes, sometimes no. For popular beach routes and school-holiday dates, packages frequently win once your account for bags + transfers + protection. For off-peak city breaks, hand-luggage-only trips, niche stays, or unusually short/long durations, DIY can beat package prices and give you finer control.

Quick checklist (save or screenshot):

• Are bags and transfers included in the package? What would they cost DIY?
• Same hotel, dates, and board on both quotes?
• Any flash sale or “kids go free” offers live this week? Icelolly
• Is ATOL protection important for this trip? (If yes, strong plus for packages.) ATOL
• Do you need specific flight times or odd trip length? (If yes, DIY may suit.)
• What’s your tolerance for admin and risk if plans change?

Bottom line: Do a five-minute like-for-like comparison before you book. Packages shine when you want the classics (sun, pools, school holidays) with minimal hassle and strong protection; DIY shines when you’re flexible, travelling light, or chasing something a bit different.

Whether you're booking a package holiday or travelling independently, it’s important to pre-purchase travel insurance to protect your trip. Goodtogo Insurance offers comprehensive coverage for all ages, with no upper age limit. Get your travel insurance quote now.