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STORY: Package holidays, once popular with the baby boomer generation, are back in fashion in Europe.

Soaring hotel and flight prices have revived demand for all-inclusive deals which had fallen out of favor.

Market research firm Euromonitor expects spending on such packages to reach $117 billion this year, up 11% from a year ago, and believes it'll go even higher next year.

Noreen Cannon is an Irish tourist who went on a package holiday.

Her week's vacation was all about the price, amenities at the hotel and convenience.

“It was a good package for all the family and the people that we are meeting they have children too so the flight was nice and the hotel is nice for children, it's family-orientated so it’s good, a good deal for us.”

NOREEN’S SON SAYING: “I loved the plane because I got to play my game with my earphones on."

The resurgence helped Europe's biggest tour operator TUI report quarterly results that beat expectations last week.

Euromonitor said fixed upfront costs and value for money are appealing, particularly with high inflation.

The popularity of holiday packages is a bright spot for a travel industry facing numerous challenges.

Travel companies have grown worried the post-pandemic enthusiasm for air travel will slip as travelers are put off by higher fares.

Second-quarter results by major carriers pointed to tougher market conditions across the aviation sector.

Last month, Lufthansa warned of a fall in third-quarter earnings.

Budget airline Ryanair and rival Air France-KLM also reported plunging quarterly profits.

Although easyJet had a better time and raised its full-year outlook for its package holiday business, which made up more than a quarter of group pretax profit last year.

Package holiday bookings for UK-travel company Jet2 are also up 7% this summer.