Backpacking holidays and package holidays are very different from each other. 

On the one hand, backpacking holiday is generally cheap and includes the use of backpack, which is much easier to carry than a suitcase. Backpackers usually stay in inexpensive lodgings and they use public transport. This kind of holiday allows travellers to explore deeply the place they go to and to become acquainted with the local culture (for instance, speaking the local language to make themselves understood). Backpackers also look for overwhelming adventures and extreme trips, especially into wild and inaccesible places. 

On the other hand, package holiday is characterized by the fact that it's arranged by a travel agent or company: means of transport, board and lodging are provided. People who choose this kind of "conventional" holiday stay in quite comfortable hotels and travel by plane, international trains and so on. However, package holidays lack the contact with the local culture and environment which characterizes backpacking holidays.

Choosing between these two kinds of holiday depends on the purpose of the journey and each kind suits a particular situation: a family is more likely to choose a package holiday, during which parents don't have to find how to travel and where to eat everyday. On the contrary, people looking for strong emotions, wilderness and extreme adventure prefer to travel as backpackers.