The top 5 holiday destinations where prices have DROPPED in time for summer 2026

THE crisis in Iran has had a knock-on effect around the world from the rising cost of fuel, an increase in energy bills, and where to go on your next holiday.

But when it comes to the price of summer breaks this year, the good news is that they’ve barely moved – and in some cases, the cost of holidays have even dropped by hundreds of pounds.

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On average holidays are up £23, but TravelSupermarket has also revealed that surprisingly, hundreds of popular destinations have actually seen prices fall.

TravelSupermarket has found that some holidays at certain destinations are actually cheaper than when the Iran conflict began.

Here are the top five destinations with the biggest price drops in the summer holidays based on a seven-night holiday between April and September, 2026.

Italy

At the very top with the biggest price drop is the Neapolitan Riviera in Italy.

Here, holidays are sitting at an average price of £905 per person, which has a price drop of £232.

It’s where you’ll find beautiful and colourful towns perched on clifftops – with spectacular views of Mount Vesuvius in some cases.

Specifically, it’s where you can explore the clifftops of Sorrento, the island of Capri and Ischia in the Bay of Naples.

Other places in Italy make it into the top five too – the Amalfi Coast and the Italian Lakes.

The Amalfi Coast is a popular destination with millions of tourists who flock there every summer for its great weather and tasty food.

Now, holidays on average there have dropped by £126 per person, with the average price of a break being £1,073.

At the Italian Lakes, which is where you’ll find the beautiful Lake Garda, Como, Maggiore and Orta – prices have dropped on average by £122pp.

Now, the average cost of a holiday here per person during the summer is £714.

Caribbean

If you’re looking for a long-haul destination, check out the Dominican Republic.

TravelSupermarket worked out that the average holiday here is now £1,364pp – a drop of £130pp.

It has cracking weather, white sand beaches, beautiful resorts and lively towns like Punta Cana on the eastern side of the island.

The Dominican Republic is also the cheapest in the Caribbean – the average price of coffee is £1.53 and a meal at an inexpensive restaurant can start from £4.90, according to Wise.

In comparison, a meal in Barbados is around £14.50 and a coffee is around £3.32.

Spain

If quick and easy holidays are more your bag for 2026, then check out La Palma.

It’s not the most well-known of the Canary Islands and is much quieter too.

It doesn’t have the enormous resorts, so if a calmer, nature-inspired holiday is on the cards, it’s a great option.

The main town is Santa Cruz La Palma which has bright coloured buildings, cobbled streets and wooden balconies that look over the black-sand beach.

Holidays here have dropped by £120 and can be on average as cheap as £474pp.

Chris Webber, Head of Holidays and Deals at TravelSupermarket, said: “Despite the current uncertainty, summer holiday prices haven’t moved dramatically — up by just £23 on average across all destinations.

“For holidaymakers sitting on the fence, that’s a signal worth paying attention to. Prices won’t stay like this indefinitely, and with so many destinations actually seeing prices fall — places like Majorca, Corfu and Turkey — now could be a smart time to book ahead of any increases.

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

For more cheap holidays, here’s a 10 all-inclusive weekend holidays abroad that are cheaper than a night out with mates in the UK.

And here are 20 of the cheapest all-inclusive resorts for summer 2026 – with family holidays from £349pp.