How uncertainty and disruption pushed travellers back to bundled trips
Sep 2, 2025
Package holidays, once thought to be fading out, are enjoying a resurgence as travellers seek security against wars, wildfires, strikes, and flight cancellations. UK and European markets show strong growth, with both traditional and new-generation operators benefiting from the shift back to bundled travel.
Key takeaways
- Travel agent growth: Spending at UK travel agents has outpaced overall travel spending in most months since 2021.
- Market expansion: The UK, Irish and German package holiday market is forecast to grow from £49bn in 2024 to £67bn in 2028.
- Consumer protection: EU and UK regulations give package holiday buyers stronger rights, including refunds, cancellations, and repatriation if operators collapse.
- Generational shift: Young adults, once focused on DIY bookings, are returning to packages thanks to flexible payment options and more diverse destinations.
- New business models: Online-only providers such as loveholidays and On the Beach use asset-light models to offer dynamic packaging and rapid response to disruptions.
- Brand revival: Traditional players like Tui and Jet2 are adapting, with Jet2 benefiting from viral branding and Tui expanding into dynamic packaging.
- Underlying driver: Fear of ruined holidays from strikes, wildfires, and geopolitical events is the main reason travellers are returning to packaged trips.
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