Cheeky Trip, a holiday price comparison site, tracks 66 million holiday deals daily to determine the cheapest foreign holiday prices. The latest analysis shows that the average cheapest holiday prices increased by 13% between 2022 and 2023. Notably, short-haul destinations experienced a 17% increase, while long-haul destinations saw a 10% increase in the cheapest deals.
Spain had a significant influence on the average short-haul holiday price surge, with the Canary Islands leading at 29%, followed by the Balearics at 25%, and mainland Spain at 22%. However, some short-haul destinations experienced below-average rate increases, such as Greece (11%), Turkey (11%), and Malta (3.2%).
Long-haul holiday prices were impacted by the Caribbean witnessing a 17% increase and Mexico with a 12% rise. Nevertheless, there are still bargains available for flexible travelers. Egypt showed the smallest price increase at 1.4%, significantly below inflation, and prices to Cape Verde fell by 0.9%.
In June 2023, the price of the cheapest last-minute departures increased by 16% compared to the previous year, while holidays departing in one month rose by 21%. These higher prices reflect peak season summer pricing. Additionally, January 2023 (summer departures) saw lead prices increase by a substantial 49%, indicating reduced early booking discounts.
Steve Campion, Managing Director at Cheeky Trip, explains that holiday pricing is influenced by supply and demand. Travel providers may lower prices and sell at a loss rather than not selling at all when supply exceeds demand. The increase in lead prices could suggest reduced capacity, as travel levels have not returned to pre-2019 levels. However, it also signals continued demand for holidays abroad, despite the cost-of-living crisis.
