Package holidays are looking like a better option since the volcanic ash cloud closed British airspace. As your holiday is purchased as one package from a tour operator, you won't be out of pocket should you not be able to take your holiday due to the volcanic ash inmobiliaria .

What is a package holiday
A package holiday is when you buy all the separate bits of your holiday in one. So you don't need to purchase a flight, accommodation and transfers separately, they are all purchased as one holiday - or a "package".

Why is buying the separate pieces of your holiday a problem.
Buying your flight from one company, and accommodation from another isn't normally a problem -however if you can't make it to your chosen destination because one of Iceland's volcanoes, such as Eyjafjallajokull, has done its worst you will lose your holiday. You should get your flight costs refunded, but your accommodation costs will be lost. It's not the fault of the accommodation provider that you couldn't make it to your destination, so they can't be expected to refund your money.

How will a package holiday be better
Booking your holiday as a package means that the company you booked your holiday through is responsible for getting you to your destination, providing your accommodation, and then getting you home again. So if you can't get to your destination because of any volcanic ash clouds lurking around, you'll be able to get all your money back - or rearrange your holiday for another time.

Why is a package holiday the better option since the volcanic ash cloud
Package holidays have always offered you the same security against failing to get to your destination, nothing has been changed. The difference now is that people are more aware of this security. Up until the ash cloud, it was assumed that flight would always leave "more or less" on time. The ash cloud has changed this thinking, which is why it's wise to consider a package holiday for your overseas break.

Why book your holiday as separate pieces rather than a package
It has become more popular in recent years to put together a holiday yourself. The good old internet has made finding accommodation in far flung places much easier, so you can get more choice. It can also work out cheaper to book your accommodation separately, as the tour operator who puts your package together has to make a profit.