Package holiday spending forecast to reach 125.9 bln next year
Bright spot for travel industry as airlines under pressure
easyJet has raised outlook for package holiday business

LONDONMALAGA, Spain, Aug 19 Reuters Sun seekers are turning to package holidays in Europe as soaring hotel and flight prices revive demand for the allinclusive deals that had fallen from favour, bolstering the balance sheets of some travel companies.

The combination of a costofliving crisis and disruption from strikes and glitches has added to the appeal of a fixedprice package without unexpected addon costs and easier redress when things go wrong.

After years of travellers using the internet to compile their own itineraries, travel analysts say a trend of buying a readymade package that began last year has accelerated this summer, the busiest for travel since the pandemic.

It39;s something that you think would have died out back in the seventies, Stuart Hatcher, chief economist at aviation data analysis firm IBA, said. Since COVID, more people are booking package trips.

Spending on package holidays in Europe most popular among Britons and Germans is expected to reach 117 billion this year, up 11 from a year ago and will hit a new peak of 125.9 billion next year, according to Euromonitor.

The resurgence helped TUI, Europe39;s biggest tour operator, to report on Wednesday quarterly results that beat expectations.

The fixed upfront costs and value for money are appealing, said Caroline…