Skift Take

Once snobbishly consigned to the ‘bucket and spade brigade,’ package holidays are one of the fastest-growing products in UK travel. This lucrative opportunity to diversify revenue has not gone unnoticed by British Airways or easyJet, with both airlines rapidly expanding their highly profitable holiday divisions. 

Pranjal Pande and Gordon Smith, Skift

Package holidays are a cornerstone of British travel. They’ve been around for generations but really took flight in the 1960s when air travel to continental Europe and the Mediterranean became much more affordable. For many, Cornwall was replaced by the Costa del Sol.

However, their popularity has dropped in recent years. Budget carriers, online travel agents, and the likes of Airbnb have made do-it-yourself vacations the norm. This shift towards independent booking helped accelerate the demise of heritage brands that were once household names. 

Now the humble package holiday is enjoying a rebound. And the UK’s biggest airlines, easyJet and British Airways, have found a hugely lucrative niche.

The Rise of easyJet Holidays

For easyJet, holidays are a relatively new business. CEO Johan Lundgren launched the venture in 2019, tapping former colleague and long-time TUI Group executive Garry Wilson to head up the operation. Speaking to The Times, Wilson described easyJet going into the holiday business as “symbiotic.” 

During the Covid-19 pandemic, the carrier was able to negotiate low overhead deals with thousands of hotels, ensuring it didn’t end up paying for rooms it didn't need. In doing so, it helped create a free market for supply where room prices can be altered to better suit demand