EasyJet bets on luxury to fuel its next phase of growth

Five-star hotel bundles help the airline tap higher-value travellers despite its low-cost roots

EasyJet is expanding aggressively into luxury holidays as its holidays business becomes a key driver of profitability. The airline launched a new Luxury Collection featuring five-star resorts across Europe, betting that travellers increasingly separate the flight experience from the hotel experience. The shift comes as EasyJet Holidays exceeds its medium-term profit targets and identifies strong demand for premium packages. Analysts say the strategy reflects changing consumer perceptions of luxury and a broader trend toward bundled, convenience-driven travel.

Key takeaways

• Luxury expansion: EasyJet launched a Luxury Collection with hand-selected five-star hotels such as One&Only Portonovi and Mykonos Grand Hotel & Resort to attract higher-spending travellers.
• Holiday division growth: The holidays unit delivered £250 million in pre-tax profit, outperforming targets and reinforcing its importance to the company’s long-term strategy.
• Rising customer numbers: More than 3 million customers booked EasyJet holidays in 2025, with 20 percent annual growth and most bookings made directly with the airline.
• Strong revenue performance: Excluding flights, EasyJet’s holidays revenue rose 27 percent to £1.4 billion, highlighting the financial impact of packaging and upselling.
• Strategic focus areas: EasyJet plans further growth in luxury, city breaks, and new European markets as part of its long-term expansion roadmap.
• Changing definitions of luxury: Industry experts note that modern luxury often involves convenience and personal service rather than traditional in-flight glamour, making EasyJet’s offer appealing to value-driven travellers.
• Targeting a new segment: The move is unlikely to capture ultra-luxury travellers but may attract those who view flights as a commodity and are willing to upgrade their accommodation when bundled with good value.

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