Package holiday prices could fall by almost half in a bid to kickstart the travel industry.
The biggest reductions are for trips to Portugal's Algarve where holidays were priced around 48 per cent cheaper than earlier this year.
The cuts have been introduced by travel firms seeking to stimulate summer bookings ahead of the UK's foreign travel restrictions eventually being lifted.
Holiday price comparison site TravelSupermarket compared current costs for a summer break with those quoted before the coronavirus pandemic.
Holidays to Portugal have seen the biggest price reductions after the country opened its borders following the Covid-19 outbreak. It is also one of the first destinations expected to establish an "air corridor" link to avoid the UK's 14-day quarantine rule.
Prices have also been slashed for trips to Spanish resorts. Costs for breaks to Tenerife fell by 19 per cent; Lanzarote 17 per cent; Majorca 13 per cent and Fuerteventura 10 per cent.
Reductions are also available on holidays to Greece and Bulgaria compared to prices offered earlier this year. However, the UK Foreign Office is still advising against non-essential travel and this will need to be lifted before holidaymakers can jet off to the sun.
TravelSupermarket's Emma Coulthurst told Travel Weekly: “FCO advice against non-essential travel needs to be lifted before travel can resume and countries need to confirm that Brits are welcome without any need to quarantine.
“All of this uncertainty and natural consumer reticence is pushing down prices.
“With demand much lower than normal for this time of year, the travel market is providing low holiday prices to encourage people to book.
“We have seen search demand pick up in the last fortnight as the Med has signalled its desire for tourists to return to its cities and beaches.
"But there will need to be more clarity on the exact dates when British holidaymakers can return before the market really picks up”.
