With the School summer holidays fast approaching, many hotels and airlines are already bumping up their prices to make as much profit as possible from cash strapped parents who are only able to travel during this period.

The average 2.4 family can expect to pay up to 40% extra for their summer holiday during the school holiday period, and if you are heading to the Mediterranean, look out for resorts in the Algarve, Crete, and the Canary Islands, who are said to the be the worst offenders.

As always, the price hikes are a result of ‘high demand’, and as more and more families book their two-week break somewhere warm and exotic, the prices of peak season holidays inflate even further.

A report by Santander shows that families travelling from London can expect to pay the steepest premiums of around 48%, while those in Manchester will pay an extra 38% for their summer holiday if they choose to travel during the school holidays.

However, the news is not all bad!  A recent survey by Fly.com shows that many European destinations are actually cheaper to visit during the school summer holidays, with the Italian cities of Milan and Venice dropping their prices by up to 65%, and Paris, Toulouse and Valencia all offering great value deals for families travelling during the school holiday period.

Combine this with a strong British Pound, and you may find that your holiday spending money will go a lot further in 2012 than it did in 2011, so those extra ice creams and souvenirs are now within everyone’s reach!

If you cannot stretch to a family holiday abroad this year, why not join the millions of others who are set to take a ‘Staycation’, and holiday at home instead.  A way to support the local economy while enjoying family time, it is a great way to spend part of the school summer holidays, and it will give you at least a week or two before you hear those dreaded words –  “I’m bored!”