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Where will your holiday money go the furthest?

When it comes to spending money on holiday, the Czech Republic and Portugal come up trumps.

Cocktail dog

If you’re thinking of going to Prague or the Algarve this year, you’ll be onto a winner as these are the cheapest destinations according to the Post Office’s annual Holiday Costs Barometer.

The results of the Holiday Costs Barometer are based on the average price of a basket of eight typical holiday items in 46 holiday destinations:

  • Cup of coffee
  • Bottle of local lager/beer
  • Coca-cola/Pepsi
  • Glass of wine
  • Pack of cigarettes
  • Bottle of mineral water
  • Suncream
  • Three-course meal for two

Sterling goes further in Czech Republic and Portugal

Jumping on the beach

Thanks to the strength of the pound, you’re spoilt for choice when it comes to taking a European break.

Prague topped the list of the best value destination with cheapest meals and drinks at £35.20.

The Algarve is Europe’s cheapest beach resort where you can get your holiday goodies for just £36.04.

The priciest European destinations are France and Italy - costing £64.58 in Nice and a whopping £80.50 in Sorrento, which is more than double the price in Prague.

Top 5 cheapest destinations

Bargain spending in Bali and Cape Town

Beach signs

Bali and Cape Town are the cheapest long-haul resorts with the average shop adding up to less than £43.

Marmaris in Turkey and Phuket in Thailand are only a couple of pounds behind, with hot prices of just £46.15 and £53.23 respectively.

Orlando was found to be the cheapest out of five destinations in USA - costing £63.06.

Top 5 most expensive destinations

Singapore and Dubai pricey for travellers

Singapore and Dubai are the most expensive places for holiday spending, coming in at under £150 each.

By contrast, the costs for Dubai’s mid-haul competitor Egypt came in at £72.73.

A day out in the likes of Australia or New Zealand would also set you back more than £100. How much of this price is due to Hobbit-themed snacks, we don’t know.

Holiday destinations by cost (£)

Top travel money tips

You could just pick a destination where prices are cheaper. But if you have your heart set on a particular place, there are several other ways you can keep your costs down:

1. Don’t wait until the airport to change your money, as you'll end up paying over the odds.

2. If you're planning on using debit or credit cards, don’t just use your bog-standard card. Consider a specialist travel card to avoid getting stung by hidden fees.

3. Consider a prepaid travel card, it’s secure and often cheaper than other ways of spending abroad.

4. If you’re asked to pay in sterling or the local currency on your card, always choose the local currency for a better exchange rate.

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First published April 2013.

Next review January 2016.



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Diana Zagorodnya

Diana Zagorodnya, Digital marketing executive at Confused.com

Diana Zagorodnya is a digital marketing executive at Confused.com. Originally from Ukraine, she loves all things gardening and is a true foodie – she has a weak spot for sweetcorn, she could live on it!

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