Cost of living

THE GREAT British break might not be so great very soon after it was announced that the overnight ‘holiday tax’ is set to be pushed forward.

Included in the King’s Speech was the dreaded new levy on staycations and one Butlin’s boss has hit back saying it will have big ‘consequences’ for families.

Follow The Sun’s award-winning travel team on Instagram and Tiktok for top holiday tips and inspiration @thesuntravel.

Plans to introduce the ‘Overnight Visitor Levy‘ for staycations in England was first announced late last year, and was spelled out again in the King’s Speech two days ago.

Essentially, the government’s plan is introduce levy overnight accommodation like hotels, B&Bs, campsites or holiday homes.

It would allow local authorities in England to charge visitors an additional fee on overnight stays which is similar to systems already used in parts of Europe.

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According to UK Hospitality, the new tax could add £100 to a two-week family stay based on £2 per person per night.  

Unsurprisingly, the plans have not been met with positivity.

Matt Rake who is a resort director at Butlin’s in Bognor Regis – said the tax would have “consequences”, especially for working families.

He said: “It’s disappointing that the government is pressing ahead with the holiday tax despite how clear businesses, consumers and the hospitality sector have been about the potential consequences.

“In the Spring, the government said families being able to pay for a holiday should never be too much to ask, yet today they’ve confirmed the introduction of a measure that will hurt working families hard.

“We know how important domestic tourism is for Bognor Regis and the local businesses here. Holidays and short breaks support jobs and investment across our community throughout the year.”

He added that in a recent poll, 73 per cent of people would reduce or cut back on holidays in England if extra costs were introduced.

The ‘holiday tax’ was formally announced in the Autumn Budget in November 2025.

And two hundred bosses from firms including Butlin’s, Haven and Parkdean Resorts have written to the Chancellor hitting out at the plans.

AIRLINES are cutting the price of flights to encourage nervous Brits to book their holidays.

Experts have already warned that in the long term, flights are going to go up in price.

Last week, British Airways owner IAG said prices will inevitably go up, with Virgin Atlantic adding surcharges on its long-haul flights.

However, the cost of flights – especially across Europe – is actually dropping right now because of the ongoing uncertainty.

This includes not only fears of a jet fuel shortage, but also concerns over the cost of living, with food and fuel prices being pushed up as well.

According to the FT, the cost of flights to 27 of the top 50 European destinations when travelling in July has dropped in recent weeks.

Some routes in mainland Europe dropped as much as 44 per cent, while a number of UK routes, such as London Heathrow to Nice, London Gatwick to Barcelona and Manchester to Palma, all dropped by at least 10 per cent.

The Sun’s Head of Travel and expert of more than 30 years, Lisa Minot, explained what this means for your holiday.

She said: “Airlines and tour operators face an impossible choice right now as they attempt to get Brits booking.

“As the US / Iran war drags on into its fourth month, news of jet fuel shortages and fuel surcharges has led to a dramatic drop in bookings as the travelling public is paralysed with indecision.

“While many of our favourite airlines and tour operators are confident in the price – and availability – of jet fuel for the summer months, convincing us to book has proved more difficult.

“When the good times roll, supply and demand can see prices skyrocket.

“Conversely, when the outlook is less sunny, that demand drops and so do prices.”

Chris Webber, Head of Holidays and Deals at TravelSupermarket, told Sun Travel about some of the places that are seeing prices drop.

He explained: “What’s really striking is just how many short-haul European destinations are actually cheaper than they were before the conflict began.

“Italy is leading the way, with the Neapolitan Riviera down £232 per person to £905, the Amalfi Coast £126 cheaper at £1,073, and the Italian Lakes down £122 to £714.

“Spain‘s La Palma has fallen from £120 to £474, making it one of the best-value options on the market right now.

“Turkey is also seeing significant drops across the board — Bodrum is down £118 to £579, Dalaman is £110 cheaper at £492, and Antalya has fallen £90 to £520.

“The Greek islands are following suit, with Corfu down £83 to £568 and Skiathos down £82 to £844, while mainstream favourite Majorca is £86 cheaper at £581.

“Holiday companies are keen to get bookings moving, and that’s likely filtering through into some very competitive pricing right now.”

Wizz Air‘s chief executive József Váradi warned the “level of hesitancy” is causing the drop in bookings, previously telling the BBC: “That level of hesitancy can be overcome through price stimulation. So, short term, you are actually seeing prices dropping.”

Barclays analyst Andrew Lobbenberg backed this up, saying: “People are reluctant to book, they are booking late, and the airline and holiday companies are having to incentivise them with lower prices.”

TUI has some huge bargains for July still, especially to places like Corfu and Turkey.

Seven nights at Odysseus hotel just before the summer holidays is £275pp, with other stays coming in under £340pp.

Hard-hit destinations have seen holiday prices plummet, too.

Egypt is still on the safe travel list and hasn’t been drawn into the Iran war, but has seen holiday prices drop.

All-inclusive holidays for a week can be found for under £500pp in July – or ditch the food package, and there are deals from £419 each.

If you can wait until next year, seven-night, all-inclusive holidays for as little as £269pp with loveholidays in January 2027.

Turkey all-inclusive holidays are even cheaper, starting from £229pp for a week’s holiday – or travel in July for breaks still under £330pp.

Brits who are nervous about booking a trip abroad right now should look at booking package holidays instead, Lisa advised.

UK tour operators are ATOL protected, meaning your money is protected if your trip is cancelled.

This isn’t the case if booking flights and hotels separately.

But if you want to take the risk? You could find some mega cheap flight deals, which might be the last time for a while.

Lisa added: “With prices tumbling as the industry tempts us back into the skies, for the late deal hunters, things are looking good.”

MOST people don’t sit down and properly work out what it costs to live in the UK.

They know rent is high, energy bills are painful, and the weekly food shop keeps creeping up, but it’s only when you add everything together that the number starts to land properly.

For a couple, a fairly typical month now comes in at around £2,180 – rent sits at roughly £1,350, energy at £150, food at £400, water at £50, council tax close to £190, and broadband at around £40.

That’s before you factor in transport, meals out, or anything unexpected, which is how most people end up comfortably over £2,200 a month just to live at home.

At the same time, I spend most of my time analysing holiday pricing and staying in hotels – more than 200 at this point – and recently one trend has become difficult to ignore.

There are now multiple four-week, all-inclusive holidays for two people, including flights, coming in at the same price or less than that monthly cost.

And when you look at what is actually included, the comparison becomes even more interesting.

Your accommodation is covered, all meals are included, drinks are available and there are no household bills to think about, plus most hotels also include fast WiFi, so working remotely is entirely possible.

So I tested it properly, and here are ten examples where the numbers genuinely stack up.

Skanes Serail, Tunisia – £795pp

I found a 28-night deal at Skanes Serail, all inclusive, for £1,590 which works out at £795 per person.

October here is exactly what most people want from a long stay – mid-20s, dry, and consistently sunny without feeling relentless. What stands out with this hotel is how easy it is to settle into.

You’ve got big pool space, direct beach access, and food and drink available throughout the day. Wi-Fi is included, and it is the kind of setup where days naturally fall into a routine.

At £1,590 for two people, you are comfortably under what most couples are paying just to live in the UK, but with everything already covered.

Riadh Palms, Tunisia – £860pp

I found a 28-night deal at Riadh Palms, all inclusive, for £1,720, which works out at £860 per person.

Sousse holds its warmth in October, sitting around 24 degrees, so you still get that proper beach holiday feel.

This is a classic, lively beachfront hotel where everything happens on-site. There are multiple places to eat and drink, a big central pool, and entertainment running throughout the day.

It is built for people who want atmosphere as well as sunshine, and you could easily spend weeks here without getting bored. At £1,720 for two people, you are still below UK living costs, with none of the usual monthly bills to think about.

Hotel Riviera Sousse, Tunisia – £875pp

I found a 28-night deal at Hotel Riviera Sousse, all inclusive, for just £1,750, which works out at just £875 per person.

You are looking at around 24 degrees in October, which is ideal for a longer, more comfortable stay. This one feels slightly more activity-led, with pools, slides, and more going on during the day.

It is a good example of a hotel that gives you options, whether you want to switch off completely or keep busy.

Food, drinks, and WiFi are all included, so you are not dipping into your pocket constantly. At £1,750 for two people, it still comes in under what many couples are spending at home each month.

Ramada Resort by Wyndham Side, Turkey – £970pp

I found a 28-night deal at Ramada Resort by Wyndham Side, all inclusive, for just £1,940 which works out at just £970 per person.

Antalya in October is still pushing 25 degrees, so it feels like you are extending summer rather than chasing it. This is a more modern, polished setup, and you can feel that in how everything runs.

The all-inclusive offering is strong, with multiple restaurants, bars and well-kept pool areas, plus reliable WiFi throughout.

It is the sort of hotel where everything just works, which matters over
a longer stay. At £1,940 for two people, you are still coming in below typical UK monthly costs.

Oludeniz Beach Resort by Z Hotels, Turkey – £1,035pp

I found a 28-night deal at Oludeniz Beach Resort, all inclusive, for just £2,070, which works out at just £1,035 per person.

October in Oludeniz sits around 24 degrees, and the setting does a lot of the work for you — mountains, coastline, and one of the best beaches in Turkey. This is less about staying in one place and more about having everything on your doorstep.

The hotel covers all the essentials with food, drinks, and facilities, but you have a lot to explore locally as well, which makes it well-suited to a longer stay. At £2,070 for two people, it’s still under the average UK living costs, but you are getting far more back for it.

Laico Hammamet, Tunisia – £1,045pp

I found a 28-night deal at Laico Hammamet, all inclusive, for just £2,090, which works out at just £1,045 per person.

Hammamet stays around 24 degrees in October, so it is warm without being overwhelming. This is where you start to notice the step up into five-star.

The spaces are bigger, the finish is cleaner, and the overall feel is more relaxed and considered. You still get the full all-inclusive setup, but with a bit more comfort built in.

At £2,090 for two people, it is effectively matching UK living costs, but with a very different standard of day-to-day life.

Sun Star Beach Hotel, Turkey – £1,050pp

I found a 28-night deal at Sun Star Beach Hotel, all inclusive, for £2,100, which works out at £1,050 per person.

Alanya sits around 25 degrees in October, so you are still getting reliably warm days throughout your stay.

This is a simpler, more no-fuss hotel that does exactly what it needs to -food and drinks are included, there is a pool and beach access, and WiFi is available.

At £2,100 for two people, it still stacks up against what most couples are paying to stay at home.

Iberostar Selection Royal El Mansour, Tunisia – £1,080pp

I found a 28-night deal at Iberostar Selection Royal El Mansour, all inclusive, for just £2,160 which works out at just £1,080 per person.

Mahdia sits at around 24 degrees in October, and tends to feel a bit quieter than some of the bigger resorts. Iberostar is one of those brands I trust from experience.

The food is consistently good, the service is well organised, and the overall standard is reliable.

That becomes more important the longer you stay, because small things add up. At £2,160 for two people, you are right in line with UK costs, but with everything taken care of.

Tiana Beach Resort, Turkey – £1,090pp

I found a 28-night deal at Tiana Beach Resort, all inclusive, for just £2,180, which works out at just £1,090 per person.

Bodrum sits around 24 degrees in October, which makes it one of the more comfortable climates for a longer stay. This hotel leans more towards a slower pace.

It is compact, easy to get around, and everything you need is included without it feeling over-complicated.

Food, drinks, Wi-Fi and facilities are all covered, which makes it easy to switch off properly. At £2,180 for two people, it is effectively on par with UK living costs.

Dosi Hotel, Turkey – £1,105pp

I found a 28-night deal at Dosi Hotel, all inclusive, for just £2,210, which works out at just £1,105 per person.

Side stays warm at around 25 degrees in October, so you are still very much in summer territory.

This is a classic all-inclusive setup that leans into simplicity.

Everything is in one place, food and drinks are always available, and there is enough going on to keep things interesting without needing to plan anything.

At £2,210 for two people, it sits just above the bare minimum UK monthly costs.

But when you consider not having to cook and no surprise takeaway costs, this becomes a total no-brainer.

BRITISH Airways passengers face higher fares after its parent company warned rising oil prices will add about £1.72billion to its fuel bill this year.

International Airlines Group (IAG), which also owns Iberia and Aer Lingus, said it expects to pass on part of the extra cost through ticket prices, with business class and other premium long-haul passengers among those most likely to be affected.

Chief executive Luis Gallego said airlines need to increase fares to help offset fuel costs, which make up about a quarter of their spending.

The rise follows disruption linked to the Middle East conflict and the closure of the Strait of Hormuz, which normally carries about a fifth of the world’s oil and gas shipments.

IAG warned the crisis could deepen if the strait remains blocked, with global jet fuel supplies potentially restricted.

However, the group said it does not expect any disruption to summer fuel supplies.

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Mr Gallego said there is less jet fuel coming from the Middle East, but there are “other places with record supply” such as the US.

He said IAG has been “planning for situations like this for many years”, and has invested in its own jet fuel supply at its “main hubs”.

The company recorded a pre-tax profit of £365million during the three months to the end of March.

That was a 76.6% increase from £207million a year earlier.

The group now expects its annual fuel bill to reach £7.78billion.

Mr Gallego attributed the firm’s “strong first quarter” to “continued strong demand for our networks and airline brands”.

He added: “IAG is uniquely positioned to navigate the current headwinds created by the Middle East conflict thanks to our leading positions across diverse markets, strong brands, structurally high margins and strong balance sheet, as well as a strong track record of execution.”

IAG said about 3% of its capacity was “exposed to the Gulf region” at the start of the war on February 28, mostly with British Airways flights.

A large part of this has been redeployed, including boosting capacity at destinations where there are now fewer flights by Middle East carriers such as Bangkok, Singapore and the Maldives.

British Airways has also announced additional flights this summer on routes with higher demand for direct flights, such as India and Nairobi.

SIX in ten Brits say free roaming is their top priority when choosing a phone plan – with a third being stung by additional fees.

A study of 2,000 adults revealed of the 34 per cent who had been charged, 22 per cent had to fork out £50 or more extra from a single trip – with 1.5 million travellers facing bills of over £100.

Nearly a quarter (24 per cent) admitted they had no idea different charges applied to varying countries in Europe.

Almost half (48 per cent) who were hit with surprise additional costs due to roaming said it had negatively affected their holiday as a result.

The research was commissioned by iD Mobile, which has teamed up with the former King of the Jungle and I’m a Celebrity… South Africa returnee, Harry Redknapp, to beat the sting of holiday bill shock.

A spokesperson for the network provider, which offers inclusive roaming as standard in 50 European destinations, said: “Being hit with a huge roaming bill when you return home is genuinely frustrating.

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“Our research shows just how many people are unsure about roaming charges, how they work, and where they apply.”

The study also found, of those who have been charged with unexpected roaming fees, 90 per cent were shocked by the amount.

Meanwhile 54 per cent said they do not understand how such charges are calculated on their current mobile phone plan, including what they are charged for calls, texts and data when abroad.

Over a quarter (28 per cent) said they did not understand what mobile roaming is and how the charges would work when travelling abroad.

When using their phone abroad, 42 per cent said it left them feeling anxious, regularly checking their usage (29 per cent) or actively limiting what they do to avoid unexpected costs (13 per cent).

Tactics to avoid unexpected fees included switching off mobile data entirely (40 per cent) and not sending photos or videos to family and friends (20 per cent).

The study also found 30 per cent felt disconnected from friends and family while on holiday abroad, according to OnePoll.com figures.

In a bid to stay connected, for 21 per cent, finding Wi-Fi would be the first thing they would do.

ATM withdrawal or foreign transaction card fees were the most unexpected costs (25 per cent), as well as hotel extras for pool towels, Wi-Fi and safe hire (16 per cent).

A spokesperson for iD Mobile, which partnered with Harry Redknapp for a campaign video which features the football star fighting the sting of roaming bills with his ‘Roaming Sting Repellent’, added: “People feel it when it comes to using their phones abroad.

“Many travellers don’t know what’s included in their phone plan, or when charges might apply, until they’re already away.

“That confusion is clearly influencing how people behave on holiday, with some cutting back on phone use entirely to avoid the risk of unexpected costs.

“No one should have to worry about being stung by their phone bill while trying to enjoy a well-earned break.”

HOLIDAYS are at extreme risk of being cancelled this summer, experts have warned.

The ongoing war in Iran has already resulted in thousands of flights being cancelled around the world, due to jet fuel prices and shortages.

Ceasefire talks between the US and Iran are yet to end the blockade of the Strait of Hormuz, after a previous ceasefire lasted just hours.

While UK airlines are yet to see any cancellations, Dan Jorgensen, the EU energy commissioner, said it was “very likely” holidays will be affected, according to Sky News.

This includes both cancelled flights and more expensive costs, he said, as Europe is in a “serious crisis”.

He explained: “Even if we do everything we can do, if the jet fuel is not there, then it’s not there.”

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“It is primarily a crisis of prices and not yet a crisis of supply, but unfortunately we cannot be sure to prevent a crisis of supply, especially on jet fuel in the future, if the crisis continues.”

Earlier this month, the International Energy Agency warned that supply issues could hit Europe in the next five to six weeks.

ACI Europe backed this up, saying: “If the passage through the Strait of Hormuz does not resume in any significant and stable way within the next three weeks, systemic jet fuel shortage is set to become a reality.”

Mr Jorgensen added that even if the Strait of Hormuz opened tomorrow, the “price crisis will still last for quite some time”.

It could even be years, he warned, to get down to price levels seen before the crisis.

UK airlines are yet to be affected by the fuel crisis, as many have ‘hedged’ fuel, meaning paying a set fee.

But Airlines UK, which represents a number of carriers, including BA, Virgin, easyJet, Jet2 and Ryanair, are now calling on the government for support to protect flights and holidays.

This would include temporary use of fuel type Jet A (not currently allowed in the UK) as well as relaxing the strict airport slot rules that would see airlines lose them if they don’t operate flights.

Easing night flight bans and “relieving the burden of Air Passenger Duty” have also been put forward.

A huge number of airlines have already cancelled flights in response to fears of jet fuel running out.

This includes:

• Lufthansa – 20,000 cancelled up to September
• United – around 250 a month cancelled
• Air New Zealand – around 1,000 cancelled
• Scandinavian Airlines – around 1,000 cancelled
• KLM – 160 cancelled
• Cathay Pacific – two per cent of flights up to June 30

Some flights routes have been axed entirely – this includes Norse Airways, London-Los Angeles route.

And flights and holidays have already gone up in price in recent months.

The Transport & Environment (T&E) said in a statement this week that long-haul flights are up to £77 more expensive – working out to more than £300 per family.

And easyJet warned people to book holidays sooner rather than later to avoid more price hikes.

For anyone worrying about their holiday, families are better to book package holidays rather than separate flight and hotels, as most packages offer ATOL protection (meaning you will get your money back if your trip is cancelled).

It is also worth checking your travel insurance, although most policies do not cover anything related to war.

BRITS have been warned to book their summer getaways now or face a massive spike in prices as the Middle East conflict sends fuel costs soaring.

The boss of easyJet today sounded the alarm after revealing the war has already cost the budget airline £25million in fuel hikes.

The Luton-based carrier has been hit hard by rising oil prices after Iran tightened its grip on tankers passing through the Strait of Hormuz.

Holidaymakers are being told that if these high costs persist, the extra bill will be passed directly onto passengers through higher fares across the entire industry.

EasyJet reported that the conflict has created “near-term uncertainty around fuel costs and customer demand” as families hesitate to book.

Official figures show that bookings for the peak summer months of June through to September have already dipped compared to last year.

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The airline is braced for a massive headline loss of between £540million and £560million for the six months leading up to the end of March.

Investors reacted with panic to the news as shares in the company tumbled by as much as 9% in early trading on Thursday.

EasyJet chief executive Kenton Jarvis admitted the firm has struggled.

He said: “Our H1 financial performance worsened year on year, impacted by the conflict in the Middle East and the competitive environment in some markets.”

Despite the gloom, the airline boss insisted that planes are still taking off as normal following the busiest Easter period on record.

He added: “Following our busiest Easter holiday period ever, the operational ramp up into peak summer continues as planned.”

Mr Jarvis claimed the company has the cash reserves to survive the crisis.

He said: “EasyJet’s financial strength from our investment grade balance sheet and £4.7billion of liquidity mean we are well placed to navigate current geopolitical challenges while remaining focused on our medium term targets.”

Experts are worried that the war could eventually lead to fuel shortages and forced cancellations, but the airline insists airports are currently “operating as normal” with supplies secured until mid-May.

Everything now rests on whether the crisis in the Middle East escalates or cools down in the coming weeks.

A quick resolution could see prices drop, but a long-term war could see holiday demand dry up as fuel is rationed around the world.