Popularity of all-inclusive holidays surges as holidaymakers look to protect against the weakening pound

Published by Stephen Little on 07 February 2019.
Last updated on 07 February 2019

Revealed: the real cost of holiday spending

All-inclusive holidays are becoming increasingly popular with Brits looking to avoid currency volatility related to Brexit, new figures suggest. 

As many as 14% more Brits are considering an all-inclusive holiday this summer according to holiday price comparison site TravelSupermarket.

It also found that nearly a third (31%) of all package holiday price searches via the site are now for all-inclusive holidays. This compares with 19% for bed and breakfast, 16% for half board, 15% for self-catering, 15% for room-only and 4% for full board.

Even though the UK is scheduled to leave the EU on 29 March an agreement has still not been secured, meaning further uncertainty for holidaymakers' money.

With an all-inclusive holiday all flights, transfers, hotels, meal, drinks and activities are included in the fixed price you pay.

As you have already paid for all of these things before you go on holiday you are protected from any potential currency changes further down the line, which could make the cost of your trip more expensive.

Emma Coulthurst, travel expert from TravelSupermarket, says the continued rise in popularity of all-inclusive holidays is not surprising in the current economic climate.

She says: “It used to be all about half board in the 90s and early 2000s, but now all-inclusive is by far thefavourite overseas package holiday type for Brits. It enables you to avoid any exchange rate volatility, which is a real pull at the moment.”

Rising holiday costs

A fall in the pound is bad news for holidaymakers as it will make your trip more expensive.

This is because when the value of sterling falls anyone travelling abroad from the UK has reduced spending power as your pound buys less of the foreign currency.

Following the Brexit vote in June 2016 the pound slumped to a 31-year low on the currency markets, dropping 10% against the dollar to $1.33.

As the date for the UK’s withdrawal from the European Union looms, further volatility is expected.

Most affordable all-inclusive holidays

Searching for the 30 most popular all-inclusive holiday destinations across more than 25 holiday providers on its site, TravelSupermarket found the most affordable all-inclusive packages this summer are to Spain.  

From Majorca to the Costa de Sol prices are lower than they were last summer, down by as much as 14%.

Other affordable countries for all-inclusive holidays include Morocco, Bulgaria, Turkey and Corfu.

Top 10 most affordable all-inclusive package holiday destinations this summer

1. Costa Brava, Spain (5% cheaper than last year)

2. Atlantic Coast (Agadir) Morocco (14% cheaper than last year)

3. Majorca, Balearic Islands, Spain (14% cheaper than last year)

4. Costa Dorada, Spain (14% cheaper than last year)

5. Sunny Beach, Bulgaria (1.5% cheaper than last year)

6. Turkey (Kusadasi and Bodrum and Antalya) (no year on year change)

7. Costa Blanca, Spain (12% cheaper than last year)

8. Corfu, Greece (4% cheaper than last year)

9. Fuerteventura, Canary Islands, Spain (8% cheaper than last year)

10. Crete, Greece (no year-on-year price change)

Source: TravelSupermarket

Ms Coulthurst says that early summer is the time to get the best prices. She says: “May is nearly always the cheapest month of the summer to go away. Also, if you have school age children, the first week and particularly the last week of the summer school holidays often offer the best package prices.”

She advises holidaymakers to check out what the hotel includes in its all-inclusive package before they book.

Ms Coulthurst adds: “All-inclusive tends to offer great value. But if there are things which you particularly want on your holiday, make sure that the hotel covers it, and if not, how much it is going to cost you before you go ahead and book.

“For example, if you want to have drinks while you’re away and they aren’t included, then you may want to check the price of them at the hotel to see if you’re happy to pay that.”

 

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This article suggests that by

This article suggests that by buying an all-inclusive package holiday consumers are protected against currency fluctuations for the included items. But don't the holiday companies have the right to impose surcharges on bookings if the pound weakens against the destination's currency? They certainly used to be able to do that.