Fully-vaccinated adults and children will not have to quarantine on their return to England from amber list countries from July 19.
Transport Secretary Grant Shapps detailed his plans to MPs on Thursday to free up foreign holidays as coronavirus restrictions are eased.
Holidaymakers who have received two jabs will no longer be required to self-isolate for 10 days on their return to England from destinations on the amber list.
People aged under 18 will also be exempted from the requirement and the guidance not to travel to countries on the amber list will be lifted from July 19.
Mr Shapps said that those coming back from holidays from amber destinations, such as France, Spain, and Portugal, will still be required to take a Covid-19 test three days before returning.
They will also have to take a test on or before the second day of their return, but will be exempted from the day eight test.
The cost of these PCR tests could add up to £400 for a holiday for a family of four.
Mr Shapps told the Commons: “In essence, this means that for fully vaccinated travellers the requirements for green and amber list countries are the same.”
‘The summer season starts here’
The move has been welcomed by the travel industry with Heathrow boss John Holland-Kaye calling it a “much-needed boost to millions”.
He said: “This is excellent news that will give a much-needed boost to millions of people across Britain looking forward to a more normal summer and reuniting with family and friends abroad.”
Tim Alderslade, chief executive of the Airlines UK industry body, welcomed the announcement as a “positive move towards the genuine reopening” for the ailing sector.
“The summer season essentially starts here.”