Is it cheaper to book holidays early or last minute?

Everyone has a theory about the cheapest way to book a holiday. Some people swear by booking a year ahead. Others wait until the last fortnight and pounce on late deals. The truth, according to the research, is that both camps are right - just for different types of trip. Here's what actually saves money, and when.

Key takeaways

• There's no single rule - booking early tends to pay off for popular destinations and fixed school-holiday dates; last-minute deals work better when you're flexible.
• Which? research found a week in Portugal could cost £176 per person less when booked eight months ahead rather than two weeks before departure.
• Thomas Cook's analysis points to the final two to four weeks before departure as the sweet spot for short-haul package deals - but only outside school holidays.
• Flights often work differently to package holidays and hotels, so it's worth checking each separately.
• Whichever way you book, spreading the cost sensibly matters as much as the headline price.
  
  

The case for booking your holiday early

Booking early is generally the safer bet if you already know where and when you want to go - particularly for popular destinations, specific hotels, or trips that fall during school holidays. Prices for package holidays to sought-after spots tend to rise as availability shrinks, and family rooms are often among the first things to sell out.

Booking ahead also gives you more choice: better flight times, a wider pick of rooms, and the peace of mind of having your trip locked in rather than hoping a late deal appears.

The case for booking your holiday last-minute

Waiting can pay off if you're flexible on destination, dates, or accommodation. Travel companies would rather discount unsold inventory than let it go to waste, so last-minute deals are more common during quieter periods like May, early June, September and October.

The trade-off is choice. The best rooms and direct flights are usually gone by the time late deals appear, and if your dates are fixed - especially in the summer holidays - waiting can end up costing more, not less.

What the research actually shows

Which? Travel research found that a week-long package holiday to Portugal cost £176 per person less, on average, when booked eight months ahead compared with two weeks before departure - a potential saving of £352 for a couple. A summer trip to Italy showed a similar pattern, with average savings of £140 per person for early bookers, rising to £340 per person for Sicily specifically.

Thomas Cook's research points the other way for shorter-haul, more flexible trips: the final two to four weeks before departure is often cited as the sweet spot for lower package holiday prices, particularly outside school holiday periods.

The honest takeaway is that neither approach wins outright. It depends heavily on the destination, how popular it is, and how flexible you can be.

Flights, package holidays and hotels: it depends

Flights and hotels don't always follow the same pattern as package deals:

• Flights: many airlines release routes 11 to 12 months ahead, and Expedia's Air Hacks study found that booking international flights 15 to 30 days before departure tended to produce the cheapest fares - a shift from the older "six months ahead" rule of thumb.
• Hotels: unlike flights, KAYAK research shows hotel prices often fall the closer you get to your stay date, with the week of the stay itself frequently working out cheapest - though this isn't guaranteed and can vary by location and events.
• Package holidays: these tend to reward early booking for popular, high-demand destinations, and last-minute booking for more flexible, less in-demand trips.

If your itinerary allows it, it's worth pricing flights, hotels and packages separately rather than assuming one approach will save money across the board.

Why school holidays change everything

If you're travelling with children and tied to the school calendar, the flexibility that makes last-minute deals work simply isn't there. Family rooms and interconnecting rooms are typically among the first to be booked up during the summer holidays, Easter and October half-term, and prices tend to stay high or rise as the date approaches rather than fall.

For fixed school-holiday dates, booking earlier is generally the more reliable way to protect your budget - and your choice of accommodation.

Practical tips to save money either way

Budgeting and paying for your trip

However you time your booking, it's worth thinking about how you'll pay for it well before you book. Spreading the cost can make sense if it helps you avoid dipping into savings you need for other things, or if it lets you book earlier to secure a better rate on a popular trip.

The key is comparing the total cost of any repayment plan against the saving you'd make by booking early - so you know the numbers genuinely work in your favour.

Find out about holiday loans