1. **Stating the problem:** The price of a holiday increases by 20%, which adds 240 to the original price. We need to find the original price before the increase. 2. **Formula and explanation:** If the original price is $P$, a 20% increase means the new price is $P + 0.20P = 1.20P$. 3. **Set up the equation:** The increase amount is 240, so: $$1.20P - P = 240$$ 4. **Simplify the equation:** $$0.20P = 240$$ 5. **Solve for $P$:** $$P = \frac{240}{0.20}$$ 6. **Calculate the value:** $$P = 1200$$ **Final answer:** The price of the holiday before the increase was 1200.