All-inclusive package holidays are cheaper now than they were 75 years ago when they first launched in 1950, according to figures from a travel retailer.

The first package holiday set Britons back £944 in today’s money.

Businessman Vladimir Raitz pioneered the package holiday with the first company to offer chartered flights that in 1950 took British holidaymakers for an all-inclusive week in Corsica.

Raitz’s company Horizon Holidays flew 32 passengers, mainly teachers and students, on a converted military plane to a former American military airstrip where they spent their nights in surplus army tents.

For the package holiday, the travellers paid £32 and 10 shillings which is £944 per person today, according to the Bank of England’s calculator.

But according to On the Beach, you can find deals that are almost 60 per cent cheaper than the 1950 equivalent. One example is a seven-night, all-inclusive stay at the four-star Houda Yasmine Hammamet in Tunisia. Flying on Friday 4 July from London Southend costs £397pp.

Nigel Robinson, holiday expert at On the Beach, said: “For the first time, this all-inclusive offering meant food and drink was included in the price and at a time when post-war rationing was still in effect in Britain, the promise of unlimited meat-filled meals and free-flowing wine was a major attraction.

“It marked a dramatic shift in holiday culture, making foreign travel accessible to the average Brit and Raitz’s innovation sparked the birth of the modern package holiday.”

Today British holidaymakers are still drawn to their value for money appeal, with the bundle deal accounting for over 60 per cent of holidays, according to the Office for National Statistics.

This is up five per cent in the past two years.

The popularity of all-inclusive holidays is set to rise further as the Gen Z are the latest to get on board, says On the Beach.

All-inclusive holidays have seen a four per cent year on year rise amongst Gen Z, accounting for 55 per cent of bookings.

On the Beach says increasing living costs makes this option more appealing as it ensures holidaymakers do not need to spend anything more than the initial price.

Read more: The cheapest package holiday destinations for 2025, revealed

“The choice is now huge as all-inclusive has rocketed in popularity, and for the last few years is the number one board basis for most people. Yes, the Sol Pelicanos (famed for the filming of Benidorm) is still a top-seller, but so too are some seriously luxe options with golf courses, spas, sushi counters, patisseries and even Starbucks, all totally gratis, from the moment you arrive to the moment you leave,” said Zoe Harris, chief customer officer at On the Beach.

Harris added: “The feeling when you don’t have to put your hand in your pocket for an entire week is next level relaxation. All you need to do is lie-back and not think of England.”