Cheapest package holidays for 2026 revealed as UAE prices plunge 25% and all-inclusive
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Package holidays are a favourite among Britons seeking budget-friendly, often all-inclusive breaks.
And the ongoing conflict in the Middle East has deterred many holidaymakers from heading further afield. The knock-on effect is that some destinations have seen significant price drops in recent months.
The price of all-inclusive trips to the UAE, for instance, has dropped more than 25 per cent, according to TravelSupermarket data compiled for the BBC.
On the flip side, some destinations have soared in cost; trips to Spain are up by an average of 3.9 per cent, while prices in Greece have gone up by 5.1 per cent and Portugal by three per cent.
So, where are the places you can go that have seen the biggest slashes to the overall price?
1. The United Arab Emirates
Taking the gold medal as the spot with the biggest price drop is the UAE
Very much the Middle East’s top offering when it comes to high-octane tourism playgrounds, Dubai is undoubtedly popular among Brits wanting to experience its beach clubs, skyscrapers and next-level theme parks.
While it’s been largely off the holiday map since February, the UAE is once again welcoming tourists – with favourable prices, too.
The average nightly cost per person of an all-inclusive family holiday in August 2025 in the UAE was £226 – but for August 2026, this has dropped to £169.
A seven-night package holiday with flights included, staying at Dubai’s Grand Hyatt Dubai Resort and Waterpark starts from £890pp.
2. Dominican Republic
In second place, taking the silver medal, is the Dominican Republic
The Dominican Republic has seen a big boost in interest since the war between the US and Iran began, with British tourists looking for alternative luxury destinations away from the Middle East.
With prices dropping from £257 to £228, the Dominican Republic has seen the second biggest drop overall for package holiday destinations.
A seven-night holiday at the adults-only Live Aqua Beach Resort Punta Cana with flights included starts from £1,810pp.
3. Mauritius
Taking the bronze medal in the full list is Mauritius
Next up is Mauritius, which has seen the average nightly cost per person of an all-inclusive family holiday drop from £307 to £273.
According to Tripadvisor: ‘Mauritius is a tropical paradise with tons to do and some of the most beautiful landscapes on the planet. Of course, this Indian Ocean island nation is known for its gorgeous beaches, waterfalls, lagoons, and mountain views.
‘Port Louis, the modern capital of this 38-mile by 29-mile island, is a bustling port with a revitalised waterfront and busy market. It’s worth a visit, but most visitors gravitate toward resort areas such as ritzy Mont Choisy, quiet Trou-aux-Biches, and the bustling Flic en Flac.’
A seven-night package holiday to Friday Attitude in Trou d’Eau Douce, with return flights, starts from £1,610pp.
4. Egypt
Egypt is the fourth country to make the list, known for its scenery and amazing pyramids
In fourth place is Egypt, which has seen a notable drop from £177 to £162.
Since conflict broke out in late February, airlines have been forced to cancel flights and reroute around restricted airspace – with a number of carriers suspending services entirely across the Middle East, forcing travellers to explore alternative breaks such as Egypt.
Sharm El-Sheikh is the ultimate desert-meets-sea sun trap, with pristine coral reefs perfect for soaking up the sun between the Sinai desert and the Red Sea coast. Alternatively, holidaymakers can head to the pyramids for a truly unique experience.
A week’s all-inclusive stay at the Jaz Bluemarine Resort in Hurghada starts from £702pp.
5. Morocco
Morocco in North Africa scoops up the fifth place award
The average nightly cost per person of an all-inclusive family holiday in August 2025 in Morocco was £128 – and for August 2026, this has dropped to £120.
Buzzing Marrakech is a vibrant cultural oasis guaranteed to bring sun well into the late evenings, with a 78 per cent chance of sunshine and average temperatures of 28.7C.
Alternatively, check out cities and towns such as Agadir, Rabat, Taghazout, Tangiers and Tetouan for a more peaceful break away from the crowds.
A seven night break at the Iberostar Waves Founty Beach in Agadir, with flights included, starts from £860pp.
6. Tunisia
Next up is fellow North African nation, Tunisia
With prices dropping from £127 to £124, Tunisia ranks sixth overall.
Known for its spectacular Mediterranean beaches, rich multicultural history and traditional whitewashed architecture, Tunisia is a sun-sure choice for this summer.
It’s ideal for families looking for an all-inclusive break packed with outdoor activities to keep the children entertained, couples wanting to enjoy a peaceful sundowner or friends looking for adventure.
Prices are from £674 per person, staying at the Sentido Marillia Resort and Spa for seven nights in a twin room, on an all-inclusive basis.
7. Turkey
Turkey is the next country to join the list, with Cappadocia among its highlights
In seventh place is Turkey, which has seen a drop from £162 to £159, and where highlights include the Turkish Riviera and Cappadocia.
Bodrum, on Turkey’s Aegean coast, is popular among those seeking package holidays, with crystal-clear waters, glamorous beach clubs and five-star indulgence.
It boasts ultra-luxury brands including Mandarin Oriental, EDITION and Maxx Royal, while also being a favourite destination of Kate Moss, Naomi Campbell and Roman Abramovich.
A seven-night break at Pasa Bey in Marmaris, Dalaman Region, Turkey with return flights from London Gatwick in July starts from £596pp.
8. Maldives
The magnificent Maldives come in eighth place on the ranking
Next up is the Maldives, which has seen the average nightly cost per person of an all-inclusive family holiday drop from £369 to £365.
The Maldives is known for its ultra-luxe resorts and unparalleled, immersive ocean scenery – and a hefty price tag to match.
If you’re on a budget, one travel expert has revealed how she holidays in the Maldives from just £37 per night – and the eight ‘local’ islands with the best bargains.
Prices currently start from £506.33 per night (excluding taxes and fees) for stays in September 2026, based on two adults sharing a Beach Villa and staying on the all-inclusive VARU Plan in the Maldives.
9. Malta
Rounding out the list is European favourite Malta
Finally, the average nightly cost per person of an all-inclusive family holiday has dropped from £137 to £136 in Malta.
It’s easy to understand why the tiny island, sometimes referred to as the ‘Jewel of the Mediterranean’, is so popular – with golden beaches, rooftop bars, vibrant nightlife and Aperol spritzes for as little as €6 (£5.20).
The small island country is also home to Neolithic temples, an impressive coastline and cheap alcohol.
The capital, Valletta, is also a UNESCO World Heritage Site – and was named the best city in the world in Condé Nast Traveller’s 2025 Readers’ Choice Awards.
A seven-night break in August at the Maritim Antonine Hotel And Spa in Mellieha, Malta, flights included, is from £509pp.