To blame are higher oil prices they say and with a large part of a holiday cost often being a flight, oil rising to over US $100 a barrel in early January, when a lot of holiday bookings are made, has inevitably pushed up the cost of aviation fuel.
In addition many governments are putting up the taxes on flights that they have started levying in recent years, and with the environment such a hot issue they know they can justify it by claiming it's to reduce carbon emissions.
But some in the travel industry claim not all the price rises being seen in 2008 are a result of higher oil prices, but mergers of big holiday companies who have subsequently cut the number of holidays available, and reducing supply, and if demand is as high as it was last year it will mean the same amount of people chasing fewer holidays, allowing the travel companies to increase the prices.
Those areas likely to feel the price hikes most are the most popular holiday areas, which include the Canary islands of Tenerife and Lanzarote, the Balearic islands of Majorca and Menorca, and Malta which has just begun to regain popularity after years of a declining market.
Tenerife and Lanzarote are both popular for winter sunshine holidays as well as the summer, and their winter tourist trade hasn't seen price rises this year, which will give them a boost compared to the rest of Spain should prices rise as some are predicting.
Tenerife is known for its beautiful climate, which attracts nearly three and a half millions tourists a year to its scenic 2,034 square kilometers. Most of Tenerife's tourism comes from the United Kingdom, followed by Germany, Belgium, The Netherlands, Finland, Sweden, Denmark, Norway, Italy and France, among many others. The island is home to many beautiful resorts, including the Playas de las Americas and Los Cristianos. In fact, recent legislation was passed to ensure that any future resort construction must either be of five-star status or offer resort luxuries like golf courses or banquet facilities.
Another of Tenerife's natural tourist attractions are the Cliffs of the Giants. These astounding rock walls drop from heights of 500-800 feet almost straight down into the sea. Tourists can soak in the sights from one of the restaurants and other viewpoints located across the small bay in the resort town of Los Gigantes. They may opt for an up-close and personal look at the massive rock faces by taking a tour boat across the bay. Lanzarote is home to more than 100,000 people and has its own international airport. The island relies on tourism as well as agriculture to maintain its economy. Millions of visitors each year enjoy the black sand beaches and unique experience that only Lanzarote can offer.
The destinations which are more likely to suffer from 2008 holiday price rises are those where the vast majority of tourists visit during the summer, and these include Majorca and her smaller sister island of Menorca.
Majorca has been a major summer holiday destination for several years among Europeans. Majorca attracts tourists looking for a traditional beach holiday, but beyond that the island has dramatic mountains, hidden coves and various historical archeological sites which adds to her appeal for many others.
But if bookings are slow, it is likely that the summer months will see price cuts across a range of holidays, and with more and more holidays being booked on-line the travel companies can adjust prices within minutes to reflect demand, allowing those consumers who can pick and choose their week or two off at short notice the ability to circumvent any overall price rises during the year ahead.
Vueling, a Spanish low cost airline, will start flying to Malta from March 31 three times a week, to and from the Spanish capital Madrid.
The airline was set up just four years ago and already has 24 aircraft in her fleet, and before the announcement of the new Malta service already served some 57 destinations, and passenger traffic grew an impressive 75 per cent year on year to November 2007, when it carried nearly half a million passeners in that month alone.
Current destinations include internal Spanish flights to Alicante, serving the Costa Blanca region, and Malaga for the Costa del Sol - both ideal to escape from the city for a golfing or sailing break, or just to spend some time on the beach. With low prices a weekend break is affordable and easy.
Less surprising in the routes the airline flies to are Nice in the South of France, Milan in Italy, which allows easy access to the Swiss Alps - and Venice, ideal for a romantic couple of days away.
Choosing Malta as a destination for Spanish tourists is a clear example of how Malta is successfully diversifying from her main holiday trade from the UK, which has formed the vast majority of her tourists in recent decades. Allowing low cost airlines to fly to the island's Luqa Airport has boosted the Malta holidays and hotel trade tremendously in the last two years.
New official figures show that this year's all important summer season has been the best in six years for Malta, reversing the decline in fortunes for the Mediterranean island.
The good news for Malta is that despite the increase in the number of tourists arriving on the island via low cost flights, the occupancy levels of hotels has increased from basic to 5 star, showing that Malta can appeal to all.
Further good news for Malta came from the figures for hotels and holidays with the news that while the number of arrivals from her traditional UK market rose by eleven per cent, the number of people from Germany visiting Malta increased by a third this year, adding strength to the holidays industry that has been reliant on tourism from one country in the past, and even Spanish tourists now visiting the island.
Both Germany and the UK have seen new low cost flight operators sucessfully applying to fly to Malta, and the increase in tourism can largely be put down to them, but with Spanish and Scandanavian airlines taking an interest Malta could see a real cosmopolitan mix arrive for a holiday this year.
Roger Munns has sinced written about articles on various topics from Marketing, Family Travel and Cars. For Lanzarote holiday information including visit YourLanzarote.netWhile a. Roger Munns's top article generates over 201000 views. to your Favourites.