Package holidays to Dubai and Egypt cheaper as European prices creep up

Package holidays to destinations like Dubai and Egypt are cheaper this summer than last, as tour operators cut prices to attract UK holidaymakers wary of traveling near the Middle East due to the war in Iran. Data from TravelSupermarket shows the average cost of a seven-night all-inclusive family stay in the UAE has dropped by 25% compared to last August, while Egypt is 8% cheaper. In contrast, prices for package deals to Spain, Portugal, and Greece have risen by 3-5%. The Foreign Office dropped its advice against traveling to Dubai after the US and Iran reached an agreement, but warns the situation remains unpredictable. Some families, like the Harris family from Swansea, cancelled Dubai trips and booked alternative destinations like Mexico. Travel agents report customers are nervous about the Middle East and potential fuel shortages, though they reassure clients that there are no problems with those destinations. The data is based on online searches for all-inclusive, seven-night family holidays in August 2025 and 2026.