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Package Holidays » Types of Package Holidays

What you'll learn this session

Study time: 30 minutes

  • Understand what package holidays are and their key components
  • Explore different types of package holidays including beach, city breaks, cruises and more
  • Learn about specialist package holidays and niche markets
  • Examine the advantages and disadvantages of package holidays
  • Study real-world examples and case studies of package holiday providers

Introduction to Package Holidays

Package holidays are pre-arranged combinations of travel services sold at an inclusive price. They've been a popular way to holiday since the 1950s and continue to evolve to meet changing consumer demands.

Key Definitions:

  • Package Holiday: A pre-arranged combination of at least two travel services (such as transport, accommodation, excursions) sold at an inclusive price.
  • Tour Operator: A company that combines travel services to create package holidays.
  • Inclusive Tour: Another term for a package holiday that includes transport, accommodation and sometimes other services.

Quick History – The First Package Holidays

Thomas Cook organised the first package tour in 1841, taking 570 people from Leicester to Loughborough for a temperance meeting. By the 1950s and 60s, package holidays to Spain and other Mediterranean destinations became affordable for many British families, transforming the travel industry.

Components of Package Holidays

Package holidays typically include several of these components:

Transport

Flights, coach travel, ferry crossings or train journeys to and from the destination.

🏨 Accommodation

Hotels, apartments, villas, or other lodging options for the duration of the stay.

🍴 Food & Drink

From self-catering to all-inclusive meal plans depending on the package type.

🏖 Activities

Excursions, entertainment and recreational activities included in the package.

👮 Rep Services

Holiday representatives who provide assistance and information throughout the stay.

📷 Extras

Airport transfers, travel insurance and other additional services.

Types of Package Holidays

Package holidays come in many forms to suit different traveller preferences, budgets and interests. Here are the main types:

1. Beach Holidays

Beach holidays are the most traditional and popular type of package holiday, especially for British tourists seeking sun.

🏖 Beach Holiday Features

These packages typically include flights, beachside accommodation and often have options for all-inclusive food and drink. Popular destinations include Spain's Costa del Sol, the Greek Islands and the Algarve in Portugal. They appeal to families, couples and groups looking for relaxation, sunshine and beach activities.

Example: TUI offers 7-night beach holidays to Majorca including flights, 4-star hotel accommodation and transfers from £399 per person.

2. City Breaks

City breaks are short holidays (typically 2-4 days) focused on exploring urban destinations.

🏙 City Break Features

These packages usually include flights and centrally-located hotel accommodation. Some may include city passes for public transport or attraction entry. Popular destinations include Paris, Barcelona, Rome and Amsterdam. They appeal to couples, friends and those interested in culture, history, shopping and dining.

Example: Jet2holidays offers 3-night city breaks to Prague including flights, 3-star hotel accommodation and 22kg baggage allowance from £299 per person.

3. Cruise Holidays

Cruise holidays involve travelling on a cruise ship that visits multiple destinations.

🚢 Cruise Holiday Features

These packages include accommodation on the ship, meals, entertainment and transport between destinations. Many cruise packages also include flights to and from the departure port. Popular cruise regions include the Mediterranean, Caribbean and Norwegian Fjords. They appeal to those who want to visit multiple destinations without repacking and enjoy onboard facilities.

Example: P&O Cruises offers 7-night Mediterranean cruises including full board accommodation, entertainment and kids' clubs from £699 per person.

4. All-Inclusive Holidays

All-inclusive holidays provide almost everything needed for the holiday in one pre-paid package.

🍽 All-Inclusive Features

These packages typically include flights, accommodation, all meals, snacks, drinks (including alcohol) and many activities and entertainment options. Popular destinations include resorts in Turkey, Egypt and the Caribbean. They appeal to families and those wanting a hassle-free holiday with predictable costs.

Example: First Choice specialises in all-inclusive holidays and offers 7 nights in Turkey including all meals, drinks, flights and transfers from £599 per person.

5. Specialist Package Holidays

As the travel market has matured, many specialist package holidays have emerged to cater to specific interests or demographics:

Winter Sports

Ski and snowboard holidays to resorts in the Alps, Pyrenees, or further afield, including lift passes and equipment hire.

🏃 Activity Holidays

Walking, cycling, water sports, or yoga retreats with specialist equipment and instruction.

🌍 Adventure Travel

Guided tours to remote or exotic destinations with experienced tour leaders.

🏪 Cultural Tours

Focused on historical sites, museums and cultural experiences with expert guides.

💐 Wedding & Honeymoon

Specially designed romantic packages, often with ceremony arrangements included.

📚 Educational Tours

School trips and study tours with curriculum-related activities and learning opportunities.

Case Study: Saga Holidays

Saga specialises in package holidays for travellers aged 50 and over. Their packages include:

  • Door-to-door chauffeur service to the airport
  • Dedicated tour managers throughout the trip
  • Included travel insurance with enhanced medical cover
  • Social activities designed for mature travellers

This demonstrates how tour operators can target specific demographic segments with tailored package holidays.

Advantages and Disadvantages of Package Holidays

Advantages

  • Convenience: One booking covers multiple travel components
  • Cost savings: Tour operators can negotiate bulk discounts
  • Financial protection: ATOL and ABTA schemes protect consumers
  • Support: Representatives available to help with issues
  • Time-saving: No need to research and book separate elements
  • Predictable costs: Especially with all-inclusive options

Disadvantages

  • Less flexibility: Fixed dates, durations and itineraries
  • Limited independence: Less opportunity for spontaneity
  • Potentially less authentic: May limit interaction with locals
  • Hidden costs: Some activities or meals might be extra
  • Environmental impact: Mass tourism can affect destinations
  • Commercialisation: Focus on tourist areas rather than local culture

Emerging Trends in Package Holidays

The package holiday market continues to evolve in response to changing consumer preferences:

📈 Dynamic Packaging

Allows consumers to create their own packages by selecting different components, offering more flexibility while maintaining legal protections.

🌱 Sustainable Tourism

Eco-friendly package holidays that minimise environmental impact and benefit local communities are growing in popularity.

🏡 Staycations

Domestic package holidays have grown, especially since the COVID-19 pandemic, offering local experiences without international travel.

Case Study: Responsible Travel

Responsible Travel is a UK-based tour operator specialising in sustainable package holidays. They offer experiences like wildlife conservation holidays in Costa Rica, community tourism in Morocco and plastic-free holidays in Portugal. Their packages include accommodation in locally-owned properties, guides from the destination and activities that directly benefit conservation or community projects. This demonstrates how package holidays are adapting to meet growing demand for more ethical travel options.

Summary: Types of Package Holidays

Package holidays remain a popular choice for travellers seeking convenience, value and security. The main types include:

  • Beach holidays - focused on sun, sea and sand
  • City breaks - short trips to urban destinations
  • Cruise holidays - multi-destination travel by ship
  • All-inclusive holidays - comprehensive packages with most elements included
  • Specialist holidays - catering to specific interests or demographics

The package holiday industry continues to evolve, with increasing personalisation, sustainability focus and niche offerings to meet diverse consumer needs. Understanding the different types of package holidays helps both consumers make informed choices and tourism professionals develop attractive products.

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