The cost of holiday packages to Bulgaria has seen a significant surge, experiencing an 11.5% increase compared to the previous year, despite its reputation as a budget-friendly European destination. This price hike translates to an average additional cost of £238 per couple for a seven-night trip in August. A study conducted by Which? analyzed 8,000 package holidays across Europe, comparing prices from August 2024 to August 2025 for departures booked in January of each respective year. The analysis revealed that Bulgaria experienced the most substantial price increase, with the average holiday cost rising from £1,038 to £1,157 per person. This surge is particularly notable given that the comparison was made during the booking period, indicating a potential for further price increases closer to the actual travel dates.
The escalating costs of Bulgarian holidays are part of a broader trend affecting several European destinations. Italy also witnessed a considerable price jump of 7.4%, with popular areas like Lake Garda and Sorrento experiencing particularly steep increases. Portugal and Cyprus followed suit with increases of 6.8% and 6.4%, respectively. These rising costs are attributed to a confluence of factors, including increased demand, soaring aviation fuel prices, a reduction in airline routes, and higher energy costs impacting hotel operations. The cumulative effect of these factors has led to a significant financial burden for holidaymakers, especially families planning their summer vacations.
While the rising costs of many European destinations paint a bleak picture for budget travelers, there are still some glimmers of hope. Spanish island destinations have bucked the trend, offering welcome relief with price reductions compared to the previous summer. Ibiza, for instance, saw a 6.4% drop in average holiday prices, amounting to a saving of £162 per person. Similarly, Costa Dorada and Tenerife experienced price decreases of 2.9% and 2%, respectively. These reductions provide attractive alternatives for travelers seeking sun-soaked getaways without breaking the bank.
Experts advise prospective holidaymakers to book their trips as early as possible to secure the best deals. Opting for the last week of the summer holidays is another recommended strategy, as prices often tend to be lower during this period. Despite the recent price surge, Bulgaria, along with Turkey and Morocco, remains among the most affordable holiday destinations in Europe. Turkey’s Dalaman region offers particularly enticing deals, with seven-night holidays averaging around £859 per person during the summer months. Similarly, the coastal city of Agadir in Morocco presents an attractive option, with week-long breaks costing around £889 per person on average.
The Canary Islands also stand out as a cost-effective choice, particularly for all-inclusive packages. For those still drawn to Bulgaria despite the price increase, exploring less-conventional destinations like Bansko can offer a unique and potentially more affordable experience. Bansko, recognized by Lonely Planet as a top city to visit in 2025, is traditionally known as a ski resort but is increasingly gaining popularity as a year-round destination. Seeking out local recommendations can also unearth hidden gems away from the crowds and potentially offer more budget-friendly options.
Navigating the evolving landscape of holiday prices requires a proactive and informed approach. By staying abreast of price trends, booking early, considering alternative destinations, and exploring less-conventional options, travelers can still find valuable and enjoyable holiday experiences without exceeding their budget. The key is to be flexible, adaptable, and open to exploring new possibilities. While some traditional budget-friendly destinations may have experienced price increases, there are still plenty of opportunities to discover affordable and enriching travel experiences.
