Package holidays bundle flights, accommodation and transfers into a single booking — giving you legal financial protection, a single point of contact if things go wrong and, typically, lower combined prices than booking each element separately. Far from being outdated, package holidays remain the most popular way for UK travellers to book a sun holiday abroad, with over 20 million ATOL-protected package holidays sold in the UK every year. This guide explains how package holidays work, why they’re often the best choice and how to find the right one.
A package holiday is legally defined as a pre-arranged combination of at least two travel components — typically flights plus accommodation — sold at an inclusive price. Under the 2018 Package Travel Regulations, UK consumers booking package holidays have specific legal rights: if the operator fails, they are entitled to a full refund or repatriation; if the holiday is significantly different from what was described, they can claim compensation; and if one element (such as a flight) is changed, they may be able to cancel without penalty.
The tour operator handles all the logistics — booking your flight seats, hotel rooms and airport transfers, and coordinating the components so they fit together. This eliminates the risk of booking a flight and then discovering your hotel has no availability, or of a flight cancellation leaving you with a non-refundable hotel booking.
Package holidays offer three core advantages over DIY bookings: financial protection (ATOL covers you if the operator fails), convenience (one booking, one point of contact, everything coordinated) and value (operators buy in bulk and typically deliver lower combined prices than individual components). For families, the coordination benefit is particularly valuable — managing separate flight, hotel and transfer bookings for a group of four or more is genuinely complex, and a package holiday removes that complexity entirely.
Package holidays also offer practical benefits if something goes wrong. If your flight is delayed and you miss a connection, the operator manages the rebooking. If your hotel has a maintenance issue, the operator’s in-resort team handles relocation. These safety nets have real value — travellers who book independently are responsible for resolving these issues themselves.
The most popular type of package holiday in the UK, bundling flights, accommodation, transfers and all meals and drinks into one price. All-inclusive package holidays are particularly popular for Turkey, the Canary Islands and Majorca, where hotel stocks support large-scale all-inclusive programmes.
Half-board package holidays include breakfast and evening meal with accommodation, giving flexibility to explore local restaurants at lunchtime. Popular in Greece, Portugal and Spain, where dining out at lunch is culturally normal and relatively affordable.
Self-catering package holidays include the flight, transfer and apartment or villa accommodation but no meals. Popular with families and groups who prefer flexibility over set mealtimes, and for longer stays where apartment living is more comfortable than hotel accommodation.
The simplest package format — flights, transfers and accommodation with breakfast only. Offers the most flexibility for dining and exploring, and is popular for city breaks and cultural holidays where eating out is part of the experience.
Spain (Majorca, Costa del Sol, Costa Blanca), the Canary Islands (Tenerife, Lanzarote, Gran Canaria), Turkey (Antalya, Dalaman), Greece (Corfu, Crete, Rhodes), Portugal (Algarve) and Cyprus are the core destinations of the UK package holiday market. Between them they account for the vast majority of ATOL-protected package holidays sold. Long-haul package holiday destinations include Mexico (Cancún, Riviera Maya), the Caribbean (Barbados, Jamaica, Dominican Republic), the UAE (Dubai), the USA (Florida, New York) and Southeast Asia (Thailand, Bali).
The UK’s main package holiday operators are TUI (formerly Thomson), Jet2 Holidays, easyJet Holidays, On the Beach and British Airways Holidays. Each offers a different balance of destinations, hotel range and service style. TUI and Jet2 are the most comprehensive for Mediterranean beach package holidays; easyJet Holidays offers competitive pricing on its own network; British Airways Holidays is strong for long-haul and premium cabin packages. All must hold ATOL licences for any packages including flights.
Any package holiday including a flight sold by a UK-based operator must be ATOL-protected. The ATOL scheme, run by the Civil Aviation Authority, refunds your money or repatriates you if your operator fails. ABTA membership provides additional consumer protection for non-flight packages and adds a code of conduct obligation. Always check for the ATOL certificate at the time of booking — this is the legal document confirming your protection.
For the latest package holidays with real-time pricing and ATOL-protected bookings, check LastMinute.com.
For most popular Mediterranean and Canary Islands destinations, package holidays are cheaper than booking flights, hotels and transfers independently. Tour operators buy in bulk and access wholesale rates that individual bookers cannot. The gap is smaller for less popular routes and can reverse entirely for city breaks where low-cost carrier fares are very competitive. The financial protection and convenience of a package holiday also have real value that’s worth factoring into any cost comparison.
Package holidays including flights sold by UK operators must be ATOL-protected by law. This means that if the operator fails: all pre-payments are refunded if you haven’t yet departed; if you’re abroad, you’re repatriated at no extra cost; and alternative arrangements are made where possible. ABTA membership provides additional dispute resolution rights. This protection does not apply to DIY bookings where flight and hotel are booked separately.
A package holiday is a pre-arranged combination sold at an inclusive price, with full legal protection under the 2018 Package Travel Regulations. A linked travel arrangement (LTA) is where an operator facilitates separate contracts for travel services clicked through from the same website — these have lighter protections than full package holidays. When booking, check whether you are purchasing a package (with full ATOL protection) or an LTA. ATOL certificates are only issued for genuine packages.
