2008 has seen the cost a typical family holiday as well as weekend breaks rise much faster than inflation, and many tourists have noticed the difference in the same 2007 holiday package compared to this year's price.
To blame are higher oil prices, and with a large part of a holiday often being a flight oil rising to over US $100 a barrel in early January was what sparked the prediction - if the analysts had known it would be over US $130 a barrel of oil by May their predictions might have been much starker.
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 didn't excperience price rises earlier this year, which will give them a boost compared to the rest of Spain for 2008 overall should prices rise further for this summer 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 full-time 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 for last minute holidays, 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.
The message from consumer groups is to search the internet and compare deals - big savings can be made with a little time and effort while doing some research.
One island popular for both winter and summer holidays is Lanzarote, and yourlanzarote.net includes details of holidays in Lanzarote