Package holiday prices to Dubai and Egypt have fallen this summer as some UK travellers avoid destinations near the conflict in Iran and areas crossing Middle Eastern airspace, according to new travel data.
An average all-inclusive seven-night family stay in the United Arab Emirates is 25% cheaper this August than last year, while the same holiday in Egypt is 8% cheaper, TravelSupermarket data compiled for the BBC shows. At the same time, package deals to Spain, Portugal and Greece have risen by 3% to 5%.
The shift comes after the Foreign Office removed its advice against travelling to Dubai last month, following an agreement between the US and Iran to end the war, but warned that “the situation remains unpredictable” in the region.
Tour operators and travel agents say the conflict has pushed many holidaymakers to switch away from the Middle East and book closer to home in Europe instead. Some families have also delayed bookings while watching prices move through the summer peak.
Tim and Natalie Harris from Swansea cancelled a planned Dubai holiday with their two teenage daughters after the conflict began and lost their deposit. They later booked an all-inclusive trip to Mexico for £6,400.
Families considering Europe are still facing higher prices. TravelSupermarket said an average all-inclusive seven-night family stay in Spain this August is up 4% to £155 per person. Portugal is up 3% and Greece is up 5%.
Depending on the day of travel, a family of four could pay up to £160 more for Spain this year than last, taking the total cost to as much as £4,340, the data suggests. The figures are based on online searches made on TravelSupermarket between 18 April and 17 June for August 2025 and 2026 holidays.
The company said the snapshot showed a broad trend, but actual costs vary depending on destination and booking date.
Some other non-European destinations have also become cheaper. An average holiday to Morocco is down 6.5%, Tunisia is 2.5% cheaper and Turkey is 1.6% less expensive than last summer, according to the data.
Mollie Hitchen, assistant manager of Marple Travel Hyde, said customers were more nervous this year about travelling anywhere near the Middle East or getting stuck abroad because of fuel shortages. She said: “People will ask questions, but we just reassure people that there is absolutely no problems with those destinations.”
Travel agents say car hire prices have fallen too, which has helped offset some of the higher holiday costs. Flora Badger, who is taking three teenage girls on their first overseas holiday, said the lower car hire price made a trip to Lanzarote more affordable than airport transfers.
Badger said rising holiday prices in school holidays had frustrated her. She had first considered booking in April to avoid summer rates, but held off because of the Middle East situation and fears of being stranded abroad.
She eventually booked Lanzarote for September, saying: “Price was a huge, huge issue,” and “It’s very frustrating how much it increases in the school holidays.”
Richard Slater, managing director of Henbury Travel Limited in Macclesfield, said bookings picked up after the US and Iran agreed a ceasefire last month. He said his business had taken about a month’s worth of bookings in the space of one week, including last-minute Mediterranean trips and more cruises.
He said travellers were also shortening their holidays to manage costs. “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,” he said.
He added that destination switching was becoming more common, with Montenegro, Malta and Madeira gaining popularity among value-conscious holidaymakers.
