Price hikes for school holiday breaks top 85 percent, says report

Parents looking to take the family away during the school holidays face price hikes of up to 85 per cent on some package deals, according to a new report. Research carried out by Santander shows that between mid-July and mid-August, the cost of overseas vacations typically increases by 38 per cent. The highest premium was attached to some package tours of Portugal, which increased in price by 85 per cent.

Deals for Majorca carried the lowest school holiday price hike at 16 per cent. Those hoping to save money by staying in the UK could also face a school holiday squeeze, with the cost of a domestic break typically rising by 30 per cent from mid-July to mid-August. In some cases, prices for British breaks rose by 75 per cent during this period, the bank said.

Santander noted that the average cost of a trip abroad dropped by 33 per cent once the new term had started in September. In related news, recent research from Aviva found that the tough economic conditions mean 25 per cent of Britons planning a holiday in 2010 will be spending less compared with previous years.

SOURCE: http://www.myfinances.co.uk/