UK travel companies have cut the prices of Spanish package holidays, Britain’s most popular package holiday choice by an average £150 as fewer British families book holidays in the country.

The price cuts are being seen as an attempt by travel giants to win back custom from low-cost airlines. There is also evidence that families are getting fed up with what they see as profiteering by Spanish hoteliers where they have increased prices by more than local inflation. In addition, the rise in the value of the euro against the pound means the cost of visiting Spain and mainland Europe will be higher this Summer.

One holiday firm said: “Customers see they will get better value in the Dominican Republic and Turkey. If they don’t take this into account, Spanish hoteliers will get their comeuppance.” John Welsh, editor of the industry newspaper Travel Trade Gazette, said many families were creating their own trips by booking a cheap flight and arranging their own hotels and car hire.