If you’re planning a family holiday to Europe this summer and want your money to stretch further once you land, you’re in luck.
A new report has revealed exactly where prices stay lowest. Analysts compared the everyday costs of a family holiday across 22 popular destinations, covering everything from evening meals to sun cream. The gap between the cheapest and priciest resorts turned out to be huge. Here’s where your holiday budget will go furthest this year.
Portugal’s Algarve came out as the cheapest destination overall.
Out of all 22 resorts studied, Portugal’s Algarve region offered the lowest prices for the everyday things families actually spend money on while abroad. A basket of ten common tourist items, including meals, drinks, sun cream, and insect repellent, came to just £140 there, moving it up from third place last year to the very top of the table.
A cup of coffee in the Algarve cost around £1.27, while a two-course lunch for two adults came to just under £21. For families hunting for a late deal this summer, these kinds of everyday savings make the Algarve a strong option worth considering.
Bulgaria’s Black Sea coast landed in second place.
Sunny Beach, on Bulgaria’s Black Sea coastline, came in as the second-cheapest destination overall, with the same basket of ten items costing one hundred and £42, just narrowly behind the Algarve. Despite prices there rising by over 9% compared to last year, it still offers some of the lowest costs anywhere in Europe.
Notably, Sunny Beach actually beat the Algarve on one specific measure. A three course family evening meal with drinks came to just £73 there, cheaper than the £78 families would pay for the same meal in Portugal.
Spain dominated the rest of the Top 10.
Lanzarote claimed third place overall, making it the cheapest of Spain’s many island destinations. Spain performed particularly strongly across this year’s entire survey, with six separate Spanish destinations making it into the overall Top 10 cheapest resorts, a dominant showing for one country.
This strong Spanish presence throughout the rankings suggests families don’t need to choose between familiar, well-connected destinations and value for money. Spain appears to offer both at once across a surprisingly wide range of its resorts.
Menorca claimed fourth place among the cheapest resorts.
Menorca landed in fourth place overall, continuing Spain’s strong run through the rankings. For families drawn to the quieter, less built up Balearic islands rather than busier hotspots like Majorca, Menorca offers an appealing combination of lower everyday costs and a more relaxed island atmosphere.
Its placement so close to the very top of the table reinforces just how consistently competitive Spain’s smaller islands performed this year compared to some of the country’s more heavily marketed destinations.
The Costa Brava rounded out the top five.
Spain’s Costa Brava took fifth place in the overall rankings, keeping the country’s strong momentum going through the middle of the table. Its mix of coastal towns and easy accessibility from the UK makes it a practical choice for families wanting good value without sacrificing convenience.
Alongside Lanzarote and Menorca, its strong placing further underlines just how competitively priced Spanish resorts were across this year’s entire survey compared to many other parts of Europe.
Tenerife proved that Spain’s islands still provide good value.
Tenerife secured sixth place in the rankings, further cementing Spain’s dominance among this year’s cheapest destinations. Despite being one of the more popular Canary Islands with UK holidaymakers, everyday costs there remained noticeably lower than in many other well-known resorts.
This suggests that popularity and higher prices don’t always go hand in hand, and that some of the UK’s most visited islands still offer strong value once you’re actually there spending money day to day.
The Costa del Sol completed a strong run for Spain.
Rounding out the top seven, the Costa del Sol became the sixth Spanish destination to appear in this year’s top ten, an unusually dominant showing for a single country. Between Lanzarote, Menorca, the Costa Brava, Tenerife and the Costa del Sol, Spain accounted for the majority of the cheapest resorts identified in the entire survey.
For families weighing up where to book, this pattern suggests Spain broadly offers some of the most reliable value in Europe this year, regardless of which specific region or island you choose within the country.
A few newer destinations joined the Top 10 for the first time.
The Costa Blanca entered the rankings for the first time this year, appearing in the top ten alongside newly added destinations like Zadar in Croatia. Their inclusion reflects growing demand among UK families for holidays across a wider spread of Western European destinations, beyond the usual handful of long-standing favourites.
Their strong first showing suggests these newer additions to the report could become regular fixtures in future rankings, giving families even more affordable options to consider when planning ahead.
Sorrento in Italy turned out to be the most expensive resort by far.
At the opposite end of the scale, Sorrento in Italy recorded the highest prices of any resort included in the study. The same basket of ten items that cost just £140 in the Algarve came to £268 in Sorrento, very nearly double the price.
A three-course meal for a family of four, including wine and soft drinks, illustrates the gap clearly too. The same style of meal that would cost around £78 in the Algarve came to £150 in Sorrento, nearly double the price for a broadly similar evening out.
The overall price gap across Europe was striking.
Across the 22 destinations studied, costs varied by as much as 92% between the cheapest and most expensive resorts. That’s an enormous swing for families trying to budget accurately before they’ve even left the UK.
Greece, while remaining a hugely popular Mediterranean destination overall, was found to be noticeably less competitive on everyday costs compared to Portugal and Spain this year. This shows that popularity alone doesn’t always translate into the best value once you factor in daily spending.
Doing a bit of research before booking can really pay off.
According to the head of Post Office Travel Money, the survey found big variations in costs between the different European resorts studied, which makes researching prices in advance more important than ever. Knowing roughly what things cost helps families work out exactly how much spending money they’ll actually need for meals, drinks and everyday tourist essentials.
For families who haven’t booked yet and are hunting for a late summer deal, the consistently low prices found in Portugal and Spain make both countries strong value options right now. Bulgaria’s Black Sea resorts were also highlighted as a worthwhile alternative for anyone open to somewhere a little different.
Some destinations remain popular for reasons beyond just price.
According to a commercial director at a major travel company involved in researching the report, demand has stayed particularly strong for popular western Mediterranean destinations this year. Many families continue choosing trusted, well established resorts that offer a familiar, reliable holiday experience, even when cheaper alternatives exist elsewhere.
Cyprus and Turkey were specifically highlighted as remaining popular with families, too, largely thanks to their strong combination of quality and value together. This suggests that while price matters, plenty of families are still weighing it against familiarity and overall experience when choosing where to book.
What this actually means for your holiday budget
It’s worth remembering that this particular cost comparison focuses purely on everyday holiday spending, covering things like meals, drinks and sun cream, rather than the cost of flights or accommodation themselves. Those separate costs could shift the overall value picture depending on exactly where and when you’re travelling from.
Even so, knowing which destinations tend to have cheaper everyday prices gives families a useful starting point when comparing options. Combining that knowledge with separate research into flight and accommodation costs should help you find a holiday that keeps your overall budget properly under control this summer.
