The new product will be available to book through the airline’s website in the UK, Irish and German markets from today (December 1) with other markets to follow in 2017.
It sees the low-cost carrier partnering with Spain-based tour operator, Logitravel, and accommodation provider, World2Meet.
The airline said the creation of Ryanair Holidays follows the successful launch of Ryanair Car Hire and Ryanair Rooms.
Kenny Jacobs, chief marketing officer, said: "Ryanair’s low fares transformed air travel in Europe and now we’re going to transform the package holiday market with the launch of Ryanair Holidays, offering our customers the unbeatable combination of Ryanair’s low fares, a wide range of accommodation options and transfers - all on the Ryanair.com website and all at the lowest prices.
"Consumers have been paying too much for package holidays for years and more and more want to put their own packages together themselves. Ryanair customers already enjoy the biggest route network in Europe and with Ryanair Holidays can choose from a fantastic range of three, four and five star hotels throughout the Mediterranean and Europe’s capital cities, ideal for last minute getaways, summer family holidays, winter sun or city breaks.
“Following the launch of Ryanair Car Hire and Ryanair Rooms, even more customers are coming to Ryanair for services and products other than flights, and this is another significant step on our journey to becoming the Amazon of air travel. Ryanair Holidays offers full consumer protection, is fully Atol bonded and insured, and won’t be beaten on price."
The airline had previously confirmed its plans to launch a package holiday offering to TTG in June, with the decision drawing scepticism from a number of consumers.