The cost of summer getaways could rise by as much as 10%, the chief executive of Thomas Cook has warned.
This means a typical seven-night holiday next summer is set to sky-rocket in price.
A week-long all-inclusive holiday in Benidorm next June at a typical hotel for a family of four currently costs £2,000, but this would soar by £200.
This is based on an all-inclusive trip with the tour operator to the Paradise Island resort in Playa Blanca.
The chief executive, Peter Fankhauser, told the BBC the cause of the rise is down to a strong demand and the weak pound.
He also said that holidaymakers were flocking back to Spain amid concerns over safety in other tourist hot-spots.
He said: “We’ve not enough beds for all the demand.”
This demand is causing hoteliers to “take a bit of an advantage” he added.
The news may not come as a surprise to some, after it was revealed the price of all holidays is set to rise next year.
The 2018 Global Travel Forecast found the cost of both flights and hotel rooms is set to rise by an average of 3.6% due to rising oil prices and inflation.