All together now

Holidaymakers trying to beat the recession by booking all-inclusive deals could actually save more money if they booked cheaper basic packages in the first place.

The 2013 Post Office All Inclusive Report says many holidaymakers would be better off if they chose a destination, booked a B&B package, then took meals in local restaurants and bought drinks in local bars.

The biggest potential savings by this approach would be on the Algarve coast of Portugal – where a couple could save £648 if they booked a B&B package, rather than an all-inclusive one. Another example is in Cyprus, in July, where booking on B&B terms, including meals and drinks, costs £144 less than an all-inclusive.

Despite these obvious savings though, more than 40 per cent of UK adults have taken all-inclusive holidays abroad and 42 per cent of package holidays sold this year are likely to be all-inclusive. In fact, the demand for all-inclusive packages has risen so strongly in recent years that TUI Travel, the largest tour operator, has devoted one brand – First Choice – entirely to all-inclusive holidays.

But the Post Office report says packages often appear to promise more than they actually deliver, particularly in European resorts, where the growth in all-inclusives has been most rapid during the past 18 months.

A particular complaint is eating set meals in the same restaurant every night, while restaurants in the surrounding area offer much better value. This problem meant 3.5 million all-inclusive travellers ended up paying an extra £104.5m to enjoy wider meal choice on their last all-inclusive break – an average £30.21 per meal.

Drinks are another area of potential disappointment. Travellers think bottles of wine and cocktails are included in the price they originally paid for the holiday, but 85 per cent of the European hotels contacted did not offer international brands of alcohol free of charge, and 65 per cent excluded bottles of wine.

Free use of the internet is yet another problem area: many all-inclusive bookers think that will be included, but often an extra charge is added.

All these seemingly hidden controls mean package travellers spend extra money during their holiday.

Andrew Brown of Post Office Travel Money says: “Our research showed European all-inclusive resorts consistently offered less than their long-haul counterparts, so holidaymakers need to be aware of what is included to avoid getting caught out.

“As most people continue to pay for extras on their all-inclusive holidays, it is important to carry enough foreign cash to cover meals, drinks and other charges which they are likely to incur.”

As with most rules, however, there are some exceptions. In this case, it’s the Costa del Sol, Corfu and Majorca which actually offer all-inclusive deals at better value than any other option, with Majorca the cheapest of all.