More Britons are going All Inclusive this year as Post Office All Inclusive Holiday Report reveals a surge in families who say it will cut the cost of kids’ meals and drinks

But while half of holidaymakers say they won’t have need to take spending money on an All inclusive trip, over 4-in-5 families splash out more than £407 while abroad

Sterling’s continuing strength and low resort prices in Europe make B&B holidays a cheaper bet than All Inclusive packages, once extra spending is factored in.

Their comparison found that going All Inclusive could cost up to 85% more

All Inclusive Holidays look set to be this year’s big winner in the overseas holiday market as summer bookings reveal an eight per cent year-on-year rise that is likely to smash the record 46.8 per cent of package holidaymakers who took one last year.

However, the research has found that low prices in European resorts, boosted by sterling’s strength, will make B&B holidays a cheaper bet for most people. This is because over four-in-five pay out for extras averaging over £407 that inflate the cost of their All Inclusive package.

Half of All Inclusive holidaymakers surveyed by the Post Office for its annual All Inclusive Holiday Report rated them good value because they do not need to take holiday spending money. The research also revealed a 12 per cent increase to 56 per cent in the numbers of families who think All Inclusive is a great option as it cuts the cost of kids’ meals and drinks.

However, despite some evidence of belt-tightening, the report found that over four-in-five families splashed extra cash to the tune of more than £407 (down from £431 last year) on their last All Inclusive holiday. 84 per cent paid an average of £152.65 in their All Inclusive resort, while 81 per cent spent £254.78 on food and drink items in local shops, restaurants and bars.

With prices down in many European resorts this year3 and sterling remaining stubbornly strong against the euro and other European currencies, the stark reality is that the price of a week’s All Inclusive holiday for a family of four with the average levels of extra spending added could cost as much as 85 per cent more than a B&B holiday that includes the cost of lunch and evening meals with drinks in local resort restaurants.

When Post Office Travel Money compared the price of a week’s family All Inclusive summer holiday in 10 European destinations with the Bed & Breakfast alternative, it found that going B&B was a cheaper option for bargain hunters in all 10 destinations.

The biggest savings were in Malta and Turkey. An All Inclusive week for a family of four in Sliema cost 85 per cent (£1,860) more than B&B – a total of £4,045.83 compared with £2,186.33.

Bargain hunters will save almost as much – £1,217 – in Marmaris. A week’s B&B cost £1,462.67 compared with £2,679.43 for All Inclusive, making the All Inclusive option 83 per cent more expensive.

There were big savings in the two of the leading family favourites as well. In the Costa del Sol, going B&B saved £341 or 17 per cent, while B&B in the Algarve saved £665, slashing a third (33 per cent) off the All Inclusive holiday cost. The smallest gain was in Majorca, where B&B cut just 1.9 per cent (£43) off the cost of an All Inclusive holiday.


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