Family package holidays to destinations like Dubai and Egypt are cheaper this summer than last as tour operators cut prices to tempt people back.

The war in Iran has put many UK holidaymakers off travelling to countries near to the conflict or through Middle Eastern airspace – opting instead to stay in Europe.

Prices for an average all-inclusive seven-night family stay in the United Arab Emirates (UAE) have dropped by 25% this August compared with last. And the same holiday to Egypt is 8% cheaper, according to TravelSupermarket data compiled for the BBC.

At the same time, the cost of package deals to Spain, Portugal and Greece are up between 3-5%, the data suggests.

Tim and Natalie Harris from Swansea had booked a holiday to Dubai with their two teenage daughters this summer, but when the Iran war broke out they cancelled and lost their deposit.

“We did manage to find a package for £6,400 for all-inclusive in Mexico which we’ve booked,” says Tim.

Last month, the Foreign Office dropped its advice against travelling to Dubai, after the US and Iran reached an agreement to stop the war, but warned British citizens that “the situation remains unpredictable” in the region.

Tour operators have cut prices to other destinations – an average holiday to Morocco is down 6.5%, Tunisia down 2.5% and Turkey 1.6% cheaper than last summer.

Mollie Hitchen, assistant manager of Marple Travel Hyde, says customers were more nervous this year about going anywhere near the Middle East, or getting stuck somewhere further afield because of fuel shortages.

“People will ask questions, but we just reassure people that there is absolutely no problems with those destinations,” she says.

Flora Badger is taking three teenage girls on their first holiday abroad this summer.

She contacted BBC Your Voice to share her frustrations in watching holiday prices fluctuate.

Flora first considered booking in April to avoid the expensive summer months, but says she held off over situation in the Middle East and fears of getting stuck abroad.

She ended up booking to go to the Spanish island of Lanzarote in September.

“Price was a huge, huge issue,” she says. “It’s very frustrating how much it increases in the school holidays.

“At the end of the day they need a treat, we’ve been saving up for it, they’ve been looking forward to it, so we’re planning on going.”

The steep price rises for European holidays may have slowed but they’re still creeping up, TravelSupermarket data suggests.

The cost of an average all-inclusive seven-night family stay this August to Spain is up by 4% to £155 per person. For Portugal prices are up 3%, and Greece has seen prices increase by 5%.

It depends which day of the week you travel, but for seven nights a family of four could be paying up to £160 extra to go to Spain this year compared to last year, bringing the total to as much as £4,340.

The figures are based on online searches, made on TravelSupermarket from 18 April to 17 June, for all-inclusive, seven-night family holidays in August 2025 and 2026.

While this snapshot of data reveals a general trend, costs will vary depending on exactly where a family goes and when they book.

One thing Flora has been able to take advantage of though is the fact that the cost of hiring a car has dropped across all of the most searched-for destinations compared to last year.

The post-pandemic slowdown on new car production has worked its way through the system, so there’s plenty of stock and car hire operators were in hot competition to compete for fewer bookings made over the spring.

“It was cheaper to go for a hire car than to do transfer costs from the airport for four people,” says Flora.

Richard Slater, managing director of Henbury Travel Limited in Macclesfield, says bookings have picked up since the US and Iran signed a ceasefire agreement last month.

“Over the last week, we’ve done about a month’s worth of bookings. That’s a mix of last-minute bookings to the Mediterranean, and we’re also seeing significant cruise bookings,” he says.

People are coping with the price rises in recent years by cutting how long they holiday for, he says.

“Two weeks used to be the mainstay when we started 40 years ago, and now, you could count on two hands the number of two-week beach holidays we sell. It’s more like eight, nine and 10 nights, and then they might take a city break for two or three nights as well.”

Destination switching has become something else for holidaymakers to consider as they hunt for better value for money, he adds, saying that Montenegro, Malta and Madeira have seen increased popularity.