All-inclusive package deal vs DIY holiday prices: Which is cheaper?

UK holidaymakers will usually pay less for an all-inclusive package deal than organising their own holiday our research has found - but it depends on the destination. 

We checked prices in six European holidays and four long-haul destinations - for a family of four in August. An all-inclusive package holiday in a three-star hotel was cheaper in seven of them. Even if you upgrade to a four-star hotel, all-inclusive deals cost less nearly half the time.

Our snapshot research compared a DIY holiday, where you stay in a hotel and eat and drink in local restaurants and bars, with the cheapest available all-inclusive holiday from Jet2holidays and Tui - the UK’s biggest tour operators. 

European all-inclusive deals and DIY prices compared

A week's all-inclusive holiday in a three-star hotel in early August was cheaper in five out of the six European destinations we checked. An all-inclusive stay in a four-star hotel cost less than a DIY holiday in Spain - in both Mallorca and the Costa del Sol. 

The biggest difference was for Mallorca. The cheapest all-inclusive deal was £276 cheaper per person than a DIY holiday, meaning a family of four could save £1,100. 

Portugal’s Algarve was the exception: a DIY holiday was cheaper than an all-inclusive holiday - but by less than £50. That’s because flights to the Algarve in August are relatively inexpensive as are and meals and drinks.

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Long-haul DIY and all-inclusive prices compared

We also looked at Tui and On the Beach’s all-inclusive deals for the Christmas holidays in Thailand, Mexico, Mauritius and Barbados.

Our spot-check research found DIY holidays to Mauritius and the Thai island of Phuket would be cheaper than an all-inclusive package deal. In Phuket in particular, hotels and restaurants are great value (see below).

But a DIY holiday was pricier in Barbados and the popular Mexican resort of Cancun, where hotels cost more. Barbados was also the most expensive place to eat out.

Where is the cheapest destination for an all-inclusive holiday?

Costa Barcelona - the stretch of coast north of Barcelona - is the cheapest destination for a short-haul all-inclusive break in early August. 

Spain’s Costa Dorada, Fuerteventura, the Greek island of Zakynthos and Dalaman on Turkey’s Turquoise Coast (pictured above) also offer comparatively cheap all-inclusive package holidays in peak season. 

We compared the average cost of more than 2,500 short-haul package holidays from Jet2Holidays and Tui in five countries to find the lowest-priced resorts in the third week of the school summer holidays.

What is included in an all-inclusive holiday?

An all-inclusive package includes flights, accommodation, three buffet meals a day, snacks and local drinks. Entertainment, kids clubs (where the hotel has one) and selected activities are also usually thrown in, as are transfers. Any extra perks are down to the individual hotel’s facilities and its definition of all-inclusive.

Cost isn’t the only consideration when deciding between a DIY and all-inclusive holiday. Package holidays also give you financial and legal protection. If something goes wrong, your travel company has to resolve the issue, offer an alternative or provide a refund. You’re also protected if the company goes out of business.

If you decide to go DIY, book your flights and hotel together (with the same company, at the same time) to enjoy the same Atol protection given to all-inclusive package deals.

Hotel, flight, food and drinks costs compared

To find out whether you’re better off on an all-inclusive holiday, you need to know what it would cost to organise the holiday yourself. 

The table below combines pricing data from the Post Office, Kayak and Skyscanner to give you average flight (return economy) and hotel prices (three-star and four-star), transfers, breakfast, lunch, coffee, soft drinks, dinner with wine, and alcoholic drinks in local bars and restaurants.

Our research

We looked for short-haul all-inclusive holidays from Jet2Holidays and Tui; and long-haul holidays from Tui and On the Beach. All holidays were the cheapest available for seven nights. The short-haul holidays departed from London on 4 or 5 August 2023, and the long-haul breaks departed on or around 30 December 2023, to represent peak season. All searches were carried out in May 2023 and were based on two adults and two children sharing two rooms and using the cheapest transfers.

Our DIY prices are per person and comprise: average return flights (provided by Skyscanner), average hotel rates (three and four-star, provided by Kayak), based on a family of four sharing two rooms, for seven nights; airport transfers from holidaytaxis.com; seven dinners including wine, seven lunches and breakfasts, and a daily allowance two beers, one glass of wine, one coffee and one soft drink for each adult. Food and drink costs are from the Post Office Holiday Money Report 2023. Lunch and breakfast costs were calculated at 40% and 25% of the dinner cost. Children’s meal costs were calculated at 40% of an adult's, plus a daily allowance of two soft drinks.