He doesn't want a cheap holiday, he wants a holiday at the cheapest price. Very different.
In much the same way as somebody might decide to buy a Rolex but wish to purchase it for the best price - they dont want a 'cheap watch'.
Paying over the odds for somewhere because 'its not meant to be cheap' is a waste of money whether you are holidaying in Butlins or the Seychelles, it never hurts to go for the most competitive deal - especially as all a travel agent is doing is booking things on your behalf. It's often possible (Though not always, I agree) to shop around and undercut them yourself.