THE cost of package holidays to Spain have increased by 9% as more and more holidaymakers avoid rival destinations amid terror attack fears.

Travel group Thomas Cook says a fall in demand for holidays to Turkey and Egypt due to safety concerns means a focus on selling ‘quality over cheap’ holidays has led to a price surge.

“A combination of hotel price inflation and increased air capacity has intensified competition for the Spanish Islands,” the group said.

“In this context, and consistent with our strategy, we have taken a deliberate decision to focus on higher margin, quality holidays, rather than chase volume growth.

“As a result, overall UK charter risk bookings are slightly behind last year’s levels, while pricing is up 9 per cent.”

Greece has also seen a massive 40% surge in holiday bookings.