The best value summer holiday destinations

If you haven’t booked your summer holiday yet, read on to discover the best value places to visit.

The weaker pound means some destinations will be more expensive this year than last, but it isn’t all bad news. Some resorts have cut their prices in order to keep the Brits visiting.

The Post Office Travel Money’s Holiday Costs Barometer found that top resorts in Spain, Portugal, Cyprus, Greece, Bulgaria, Croatia and Italy have cut or pegged their local prices in order to counteract the affects of a weaker pound.

“There is no escaping the fact that sterling is weaker this year than last, resulting in price rises in 80% of resorts surveyed,” says Andrew Brown of Post Office Travel Money. “However, looking back to previous years, European resort costs have fallen quite significantly in the longer term.”

Compared with two years ago when sterling started to strengthen against the euro, costs measured by the Post Office Travel Money have fallen significantly everywhere except Ibiza and Turkey.

The biggest price falls have been seen in Cyprus, where costs are down 23% over two years and 45% since 2011.

Compare the best credit cards to use abroad

Where offers the best value?

The Holiday Costs Barometer looks at the average price for a range of items most of us buy on holiday including coffee, beer, suncream, a newspaper and dinner in a local restaurant. 

“The pound may be worth less in Europe than a year ago but our research suggests UK tourists who choose destinations carefully could find resort prices lower than expected,” says Brown. “However, sterling could be affected – positively or negatively – by the EU referendum vote.

Frugal holidaymakers should head for the Algarve, as it's the biggest bargain in the Eurozone. Altogether the 10 items in the Barometer come to around £47, only 5% more than last year. Like Cyprus, prices in Portugal have plummeted in recent years, down 17% over two years and 28% since 2011.

Another financially savvy option could be one of the Greek islands. Three islands make it into the top 10 on the Barometer. Crete is in seventh place with a barometer total of £63.16, Zante is eighth at £64.65 and Kefalonia is tenth with total costs of £68.49.

“For those still at the planning stage, it will be wise to compare prices for tourists staples in resorts you are considering before booking. This could make all the difference to how far the holiday budget will stretch,” says Brown.

Compare the best credit cards to use abroad

Top 10 Best Value Holiday Destinations

The two tables below highlight the costs at the 10 best-value destinations.

Compare the best credit cards to use abroad