Package Holiday vs DIY: Which Saves You Money and Stress?

The Quick Answer

Neither option is universally better. Here is when each works best:

• Package holidays win - Beach resorts, all-inclusive destinations, popular tourist spots, first-time family travel, short breaks.
• DIY booking wins - Off-the-beaten-path destinations, multi-stop trips, budget-conscious families willing to hunt deals, experienced travellers.
• Hybrid approach works - Book flights and accommodation separately but use tours for complex logistics like safaris or island hopping.

Full Comparison

Real Cost Breakdown

To compare properly, you need to add up ALL costs for each option:

Package Holiday Includes

• Return flights (usually with hold luggage)
• Airport transfers both ways
• Accommodation
• Holiday rep support
• ATOL protection

DIY Costs to Calculate

• Flights (check baggage is included or add cost)
• Accommodation per night
• Airport parking or transport to airport
• Transfers at destination (taxi, bus, hire car)
• Travel insurance (often bundled with packages)
• Car hire if needed
• Booking fees on some sites

Financial Protection

This is where packages have a significant advantage:

• Package holidays - ATOL protection means full refund if the company collapses. ABTA membership adds extra cover. One company handles all problems.
• DIY bookings - Each element has different protection. Airlines covered by EC261 for delays/cancellations. Hotels may have their own policies. Credit card Section 75 helps but requires claims over 100 GBP. No single point of contact if things go wrong.

Flexibility Comparison

• Changing dates - DIY often easier/cheaper to modify individual elements. Package changes may incur admin fees.
• Cancellation - Packages often have structured cancellation fees. DIY depends on each booking (flights usually non-refundable, hotels vary).
• Extending stay - Much easier with DIY. Package extensions can be expensive.
• Choosing flight times - DIY gives full control. Packages may stick you with 4am departures.

The Time Factor

Your time has value. Consider how long each approach takes:

• Package holiday - Browse, compare 3-4 options, book. Perhaps 2-3 hours total.
• DIY booking - Research flights (1-2 hours), accommodation (2-4 hours), transfers (30 mins), activities (1-2 hours), insurance (30 mins). Easily 6-10 hours for a thorough search.

If you save 150 GBP by booking DIY but spend 8 hours doing it, you valued your time at under 20 GBP per hour. For some that is worth it. For others, the package premium is money well spent.

Best Approach by Destination

• Spain, Greece, Turkey (beach) - Package often wins. High competition keeps prices low.
• Florida theme parks - DIY usually better. Villa accommodation and park tickets priced better separately.
• City breaks (Paris, Rome, Barcelona) - DIY. Budget airlines and central Airbnbs beat package hotels.
• Caribbean/Maldives - Package often better. Includes expensive transfers and sometimes meals.
• Multi-country Europe - DIY essential. Packages rarely cover complex routes.
• Safari/Adventure - Specialist tour operators often best value for complex logistics.

Our Verdict

For most families taking a week at a beach resort, packages offer excellent value when you factor in everything included. The price difference to DIY is often smaller than it appears, and the convenience and protection are worth the premium.

DIY makes sense when you want something packages cannot offer - unusual accommodation, off-peak dates, multi-stop trips, or destinations where packages are limited.

The hybrid approach is increasingly popular: book flights on a budget airline, accommodation on Booking.com, but use a tour company for complex elements like day trips or multi-island transfers.