Are package holidays right for you?

Package holiday deal or do it yourself? Understanding the pros and cons of both booking methods can help you make up your mind…

By Saga team

Published 4 May 2024

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Package holidays once meant a fortnight in Benidorm being herded around by a clipboard-wielding rep. But over the years, they’ve evolved to offer boutique hotel stays in upscale destinations, activity-themed holiday that give you the opportunity to expand your mind and indulge your passions. In fact, today’s package holiday could be exactly what you're looking for. Reduce the stress and the budget, and up the relaxation and enjoyment...

What is a package holiday?

Package holidays are usually all-in-one holiday deals with flights, transfers, hotel accommodation and sometimes food included. During the 1970s package holidays enabled millions of Britons to holiday abroad, but the advent of no-frills flights and holiday comparison websites saw their popularity wane in the early 21st-century.

However, in recent years package holidays have seen a resurgence, largely thanks to travellers seeking greater financial security (package holidays are generally protected by ATOL) after the collapse of several high-profile holiday companies. There’s also the penchant of budget airlines to slap hidden costs such as baggage fees on to fares, which can end up making what seems to be a great deal on a flight suddenly much less cost effective.

Package resorts usually have a tour operator representative on the ground dealing with requests, excursions or emergencies, meaning you're never on your own in the rare case of something going wrong on holiday.

Package holidays don’t just cater to the sunlounger crowd either – there are now options for all kinds of holidays, such as music events, birdwatching, garden appreciation and gastronomy.

Package holiday benefits

Upfront costs

Because many operators have struck deals with airlines and hoteliers, package holidays tend to be cheaper than arranging a similar booking yourself. As flights, accommodation and potentially meals and transport are paid upfront, prices are more transparent from the outset, allowing people to budget more effectively during their trip.

Better protection

By law, package holidays sold through UK travel companies are required to be protected underneath the government-backed ATOL scheme. This means that if the travel company you’ve booked with goes bust or the airline your flights are with fails, you will be refunded if you are yet to travel, and entitled to hotel costs or flights home if you are already abroad. Always ask before you book whether a holiday is ATOL-protected – when Lowcostholidays went into administration in July 2016, 140,000 holidaymakers found they had negligible protection because it was registered in Spain (and therefore exempt from Atol requirements).

Lack of stress

Package holidays remove much of the burden and irritation that comes with planning a holiday and trawling through hundreds of price comparison websites.

Better for solo travellers

Booking a package deal may be advantageous as a solo traveller as many companies offer a reduced price or omit singles’ supplements. Saga offers specialist solo travel options for both escorted tours and hotel holidays, with low or no single supplement options available.

Any downsides?

Package holidays can mean settling for aspects you’d rather not. Although you may be happy with the hotel and destination, you may not appreciate the full-board meal plan that's factored in a meal in the hotel restaurant every night rather than exploring the local culinary options.

Package holidays are best suited for breaks of standard length (usually a week or a fortnight). If you want to go away for a more irregular period of time, such as nine or 17 days, some tour operators may not be able to help you. Saga offers long-stay options for those looking to get away for longer, such as an extended holiday enjoying some winter sun.

Check flight times too; some package holiday companies may offer an early hours take-off is at 4am, you may have to stay near the airport overnight, negating any saving. At Saga, we offer flights with daytime departures, as well as providing a nationwide chauffeur service to pick you up from your house and take you to the airport and back again on your return journey.

What’s the alternative?

The boom in budget airlines and last-minute websites in the early 21st century meant package holidays fell out of fashion, with some travellers preferring the freedom of planning their own trips abroad, but does it always pay to cut out the middleman? And do DIY bookings offer the same security as package holidays?

While do-it-yourself holidays allow travellers to stay in whatever hotel they want and dine in whatever restaurant they choose, it could mean holidaymakers are crestfallen by the size of their credit card bill when they get home, having forked out for restaurant meals, taxis and excursions during their fortnight in the sun.

if you book your journey directly with the airline, or your accommodation through a villa company, you won’t be protected underneath the Atol scheme. This could leave you stranded abroad if the airline or accommodation goes bust. However, if you book your flight and hotel or car hire together (or within 24 hours) from the same travel website, it should be Atol-protected, just like traditional package holidays.

Regardless of your booking methods, make sure your insurance includes airline and end-supplier failure cover, which should protect you if your airline or hotel company goes out of business.

What’s included in a Saga holiday?


Explore our complete range of Saga Holidays, including hotel stays, escorted tours and special interest holidays

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§Underwritten by Astrenska Insurance Limited and subject to medical screening or a price reduction if not required. Pre-departure cancellation cover is provided by Saga and only available when taking out the included insurance.