Pressure mounts on travellers as costs soar

Holidaymakers are being warned about additional expenses they could face when travelling abroad this year, as key taxes and travel essentials look set to soar.

Travel insurance experts at Tiger.co.uk have shared seven rising costs, which could add hundreds of pounds to the overall price of a holiday.

This year passport costs have risen by almost 8% for a standard online application.* While this may seem like a small increase, other costs such as rising flight prices driven by fuel uncertainty, along with Air Passenger Duty increases, can quickly add up.

Travellers are also being urged to check the terms and conditions before booking, as some package holidays allow companies to increase prices by up to 8% due to changes in fuel or tax costs, leaving families unable to cancel without charge.** The average week-long holiday abroad for a family of four costs £2,396,*** meaning an 8% increase could add almost £200 to the total cost of the trip.

Ian Wilson, travel insurance expert and Managing Director at Tiger.co.uk said: “With summer holidays just around the corner, families will be keen to plan out their budgets and see if a trip to the sun is possible this year.

“Unfortunately, 2026 is proving rather turbulent in terms of travel costs with fuel price fluctuations and hikes in passport and passenger duty costs all adding up.

“It’s important for anyone booking package holidays to make sure they read through the terms and conditions, as in some cases operators are entitled to pass on increases in fuel and taxes without offering free cancellation.

“Also, with major events such as the World Cup taking place across June and July this year, some destinations may see higher demand and increased prices, something travellers need to be aware of.

“The key is to start early, shop around and do thorough research, comparing quieter locations, various airlines and off-peak times to travel. Travellers also need to make sure they have appropriate travel insurance in place as soon as they make the booking, to protect them against unexpected costs or changes in the run up to their trip.”

Rising costs travellers should watch out for:

Rising passport costs

This year the cost of British passports has risen, with a standard online adult application increasing from £94.50 to £102, and a child’s from £61.50 to £66.50. This means travellers applying for a new passport will pay nearly 8% more than in 2025. While the increase may seem small, it can have a noticeable impact on the overall cost of a holiday, particularly for families.

Air Passenger Duty hikes

Air Passenger Duty is a UK tax charged on passengers flying from UK airports, with the amount varying depending on whether the flight is short or long-haul and the class of travel. This year the charge has risen, with further increases planned for 2027,**** adding more pressure to the cost of flights and overall holiday prices.

Rising tourist tax

Tourist tax is not a new concept but recent overtourism has led to a surge in measures to help reduce the volumes of people headed to holiday hotspots, to support local housing pressures and promote sustainable tourism. With new countries introducing the measures for 2026 and existing countries increasing the costs – in some cases per person, per night. For example, a new law in Spain, has confirmed that as of April 2026, prices across Catalonia will increase, with Barcelona charging 7 Euros a night for luxury hotels, 4.50 Euros a night for tourist apartments and 3.40 Euros for 4 star hotels – with these costs set to rise again in 2027. On top of these regional tax charges, local councils can now add their own surcharge – with Barcelona potentially adding up to 8 Euros.******

Jet fuel price rise

Ongoing global uncertainty and recent constraints on fuel supply have pushed up the cost of jet fuel, contributing to rising flight prices. With European jet fuel prices having seen significant increases recently,***** there is still uncertainty around how air fares may develop in the months ahead. As a result, travellers who have not booked summer holidays in advance could face even higher costs this year.

Travel operators 8% rise

Under UK rules, holiday companies can increase the price of a package holiday after it has been booked if costs such as fuel or taxes rise, so it’s important to check the terms and conditions before booking. Travel operators are not required to offer free cancellation if the increase is up to 8%, meaning travellers could face paying more than expected. This could add hundreds of pounds to the overall cost of a holiday.

EU Border changes ETIAS 

Coming soon, estimated to be introduced towards the end of 2026 will be ETIAS, European Travel Information and Authorisation System, a similar concept to the US visa system, where passengers travelling to the EU for a short stay who are not a citizen of an EU or Schengen country, will need an ETIAS for travel to 30 listed countries in Europe. It will be free for children under 18 and people over 70 but 20 Euros for all other passengers unless they are exempt – valid for three years, unless the travellers passport needs renewed. Applications will be available online so holidaymakers need to be wary of fake sites selling ETIAS, especially now, given the process is not yet live. There is one official website that will keep travellers up to speed with all the latest information. 

Impact of large events

World events tend to have a knock-on effect on travel prices, particularly in the countries hosting them, as demand for travel, accommodation and services increases. With costs already rising across the board, major events this year such as the World Cup, Formula 1, and festivals like Tomorrowland and Primavera may contribute to higher travel expenses and make trips more expensive than in previous years.

Tiger.co.uk can help holidaymakers hunt for savings on travel insurance, annual travel insurance, travel insurance for families and those who need travel insurance for pre-existing conditions.

References:

*https://www.gov.uk/passport-fees

**https://www.telegraph.co.uk/travel/advice/heres-why-your-tour-operator-could-demand-more-money/ / https://www.facebook.com/sussexlive/posts/a-little-known-clause-in-package-holiday-terms-and-conditions-could-see-the-cost/1593145846146924/

***https://www.evolutionmoney.co.uk/our-loans/holiday-loan/much-people-spend-holiday-advice

****https://www.businesstravelnewseurope.com/Air-Travel/UK-Air-Passenger-Duty-to-increase-on-1-April

*****https://www.bbc.co.uk/news/articles/c87w4x0n3j0o

 ******https://euroweeklynews.com/2026/03/23/spain-tourist-tax-rise-confirmed-as-new-law-sets-out-charges-from-2026/

This article is intended as generic information only and is not intended to apply to anybody’s specific circumstances, demands or needs. The views expressed are not intended to provide any financial service or to give any recommendation or advice. Products and services are only mentioned for illustrative rather than promotional purposes.