The two primaries and the secondary in my town announced their October half term in 2025/26 school year will now be 2 weeks.
A caravan park holiday for the new second week is £229. For the normal week of October half term the same holiday is in excess of £1000!

If prices are higher at peak times, is it because the holiday locations are at capacity and therefore reducing prices would just cause first-come-first-served booking chaos? Or perhaps there is spare capacity but the market will bear the higher price so they charge it.

This is one reason  why I'm not convinced by proposals for shorter summer holidays and redistribution of holiday periods through the year.

I'm wary of "it did me/us no harm" arguments but here's one anyway! In the 1990s it seemed fairly normal for people to take holidays during term-time. This was mainly at primary school. At secondary school it required the head's authorisation, and only happened occasionally. We sometimes had authorised holiday leave for one or two weeks when I was at primary school, and I don't remember it causing major problems. The summer term is often slower-paced anyway! I can see it being more of a problem at secondary school, but the nature of primary-age learning, being less geared to exams etc, was such that a week or two off wasn't the end of the world.

Holidays are cheaper in term time because they don't sell anywhere near as many.

So if they start to do ao, what will happen? Yup, they'll cost what they already do at busy times & the weeks that are quieter will be cheaper. It's a win-win for the holiday companies, as the holiday season will even off numbers-wise and every week will then cost the same (higher than the cheap ones do now)