Family package holidays to sunny hotspots like Dubai and Egypt are actually cheaper this summer than last, as tour operators slash prices in a desperate attempt to lure tourists back after the Iran war scare sent everyone scurrying to Europe.
According to TravelSupermarket data compiled for the BBC, the average all-inclusive seven-night family stay in the United Arab Emirates has dropped 25% this August compared with last year. Egypt is 8% cheaper. Meanwhile, Spain, Portugal, and Greece have gotten 3-5% pricier, because of course they have.
Take Tim and Natalie Harris from Swansea: they booked a Dubai trip with their two teenage daughters, then promptly cancelled and lost their deposit when the Iran war broke out. They salvaged the summer with a £6,400 all-inclusive Mexico package. "We did manage to find a package," Tim says, sounding like a man who just wrestled a discount from a travel agent's clenched fist.
The Foreign Office dropped its advice against travelling to Dubai last month after the US and Iran reached an agreement, but still warns the situation is "unpredictable." Tour operators have also cut prices to Morocco (down 6.5%), Tunisia (down 2.5%), and Turkey (down 1.6%).
Mollie Hitchen, assistant manager of Marple Travel Hyde, says customers are more nervous this year about going anywhere near the Middle East or getting stuck due to fuel shortages. "People will ask questions, but we just reassure people that there is absolutely no problems with those destinations," she says, in the soothing tone of someone who has said this 47 times today.
Flora Badger, taking three teenage girls on their first holiday abroad, watched prices fluctuate with the frustration of a person trying to buy airline tickets on a roller coaster. She held off booking due to Middle East tensions and ended up booking Lanzarote in September. "Price was a huge, huge issue," she says. "At the end of the day they need a treat, we've been saving up for it, they've been looking forward to it, so we're planning on going."
The steep price rises for European holidays may have slowed but they're still creeping up. An average seven-night all-inclusive stay in Spain this August is up 4% to £155 per person; Portugal up 3%; Greece up 5%. A family of four could pay up to £160 extra for Spain this year, totalling £4,340.
One bright spot: car hire costs have dropped across all searched destinations compared to last year, thanks to the post-pandemic new car production slowdown finally working its way through the system. Flora notes: "It was cheaper to go for a hire car than to do transfer costs from the airport for four people."
Richard Slater, managing director of Henbury Travel Limited in Macclesfield, says bookings have picked up since the US-Iran ceasefire. "Over the last week, we've done about a month's worth of bookings," he says. People are also cutting holiday length: two-week beach holidays are now as rare as a reasonably priced airport sandwich. Instead, it's eight, nine, or ten nights, plus a city break. Destination switching is also in vogue, with Montenegro, Malta, and Madeira seeing increased popularity.
So if you're looking for a bargain and don't mind a little geopolitical uncertainty, Dubai and Egypt are waiting - with open arms and deeply discounted rates.