Check if a vacation package saves money.
A package is worth comparing on price only after crediting the extras it includes that you would genuinely have paid for anyway — transfers, checked bags, resort credits. Subtracting those from the package price gives the effective cost of the flights and hotel, which is what compares against booking them separately. Packages typically win by 5 to 15 percent because operators buy allocation in bulk, but the price gap is often not the deciding factor. In many jurisdictions, and notably under EU and UK package travel rules, a package carries statutory protections including insolvency cover and a duty to repatriate that separate bookings simply do not.
Effective package cost
Effective = package price - value of inclusions you would have bought
Saving
Saving = (flights + hotel + transfers booked separately) - effective package cost
Tour operators contract seat and room allocation in bulk well ahead of the season at rates no individual can access, and they can cross-subsidise between components. They also fill capacity they have already committed to, so a marginal booking is worth taking at a low price.
In the EU and UK, package travel regulations make the organiser responsible for the whole arrangement — including insolvency protection and a duty to arrange repatriation if things fail. Book the same components separately and each supplier's failure is your own problem. This is often worth more than the price gap.