Backpacking and package holidays are two opposite ways to live your vacations. If you want to "live" truly the place you're visiting, backpacking holidays are probably the best way: you can choose what to do, to see and also where to stay or to eat, making your holiday exactly as you would have desired it; of course, there are also downsides, like the possibility to bring only the bare essentials, because of the maximum capacity of the backpack (and obviously the maximum weight you can bring on your shoulders!), or the long time you have to spend to organise it. On the contrary, package holidays are easier to prepare, more relaxing (as the itinerary is already prepared) and you can bring  whatever you want, making this type of vacation better than the backpacking one for families (especially with many or little children); but the downsides are that often they are more expensive than backpacking holidays, it's possible to visit almost only what is in the root and it's hard (if not impossible) to fully enjoy the local culture and people. Personally, I prefer the backpacking ones, because I like to discover the essence of the place I am visiting, and also to explore and to "lose" myself doing it. That's the best way to enjoy your holidays!