Are package holidays really in terminal decline?

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I read two articles this morning suggesting that package holidays are on the way out. The first in the Guardian that the sun may finally be setting on the traditional package holiday and that Spain is becoming more popular as a location to buy holiday and/or retirement property. Evidently Club 18 - 30 are withdrawing from Benidorm as the resort isn’t sophisticated enough for its clients. Travel Daily cites a recent report entitled “Package Holidays - all wrapped up” suggesting that a combination of increasing demand for tailor made holidays, activity holidays and city breaks and the ability to go online and put together your own DIY holiday is reducing demand for package holidays.

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Girona, a great DIY city break destination

What do you think? I believe that the cost of the flight is a determining factor is whether it is worthwhile putting together you own pickage or DIY holiday. There seems to be a great choice of low cost accommodation available in most destinations with companies like Holidaynights and LowCostHotels but this is only viable if there are flights at reasonable prices.

You also have to bear in mind the issue of travel protection and the time spent putting together the holiday when comparing package and DIY holidays.

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