The school summer holidays have officially started, with many families across the country jetting off for a well-needed break. For those who are looking to be conservative with their spending on holiday, Post Office has revealed the top 10 holiday destinations where money goes the furthest.
In its 18th annual Family Holiday report, the Post Office revealed that the cheapest European beach spot for families isn’t in Spain, France or Italy. Created in partnership with TUI, the report looks at the cost of meals, drinks and everyday holiday items in 22 resorts across Europe, with six destinations making an appearance for the first time. The cheapest, however, can be found in Portugal.
The report tallies up the total cost of 10 different tourist items, including lunch and evening meals for the whole family, a range of drinks such as a cup off coffee and beer, suncream and insect repellent.
The Algarve in Portugal claimed the top spot this year, after coming third back in 2025, with a total cost of £139.65. In fact, prices there have fallen slightly, while prices in several other places have increased since the last report in July 2025.
Making up the top three cheapest destinations for 2026 are Sunny Beach, Bulgaria at £142.16, and Lanzarote, Canary Islands at £147.42. Spain has the most places in the top 10, with six destinations on the list.
The Post Office described the Algarve as a “great choice” for a simple family beach holiday, offering plenty of attractions, beaches and eateries that all the family can enjoy. Popular resort destinations in the Algarve include Albufeira, Vilamoura, and Lagos.
The Post Office wrote: “Away from the beach, you can take a boat trip from the marina, visit nearby water parks or spend a day at Zoomarine for sea life, shows and water fun. The Algarve also offers strong value.
“It tops this year’s Family Holiday Report and ranks highly in the Children’s Beach Barometer.”
The report found that the Algarve had a fall of 2.7% in total cost from last year. The average price of a beer came in at £2.62, while a three-course family including wines and soft drinks would put you back £77.79.
In contrast, costs in Sunny Beach have risen 9.3% from 2025. The report speculated that Bulgaria joining the eurozone may have impacted prices.
The resort still boasts the cheapest family evening meal with drinks, priced at just over £73, compared with £78 in the Algarve and £76 in Menorca, a new destination to the report that landed in fourth place.
At the other end of the list, families will be forking out more for meals, drinks, accommodation and holiday extras. The most expensive resort holiday for 2026 was Sorrento in Italy, with a total of £268.23.
Funchal, Madeira was the second most expensive at £260.21, with Crete being named third most expensive at £221.57. Sorrento and Madeira were found to cost nearly double the amount of the Algarve and Sunny Beach.
Laura Plunkett, Head of Post Office Travel Money, said: “It’s not a surprise that our colleagues at TUI found price rises in some of the most popular European holiday destinations as the impact of the war in the Middle East causes widespread cost of living pressures. Fortunately, sterling has proved remarkably resilient in recent weeks and has seen its value rise against the euro in particular.
“This means that once the exchange rate has been applied, families will not face the full brunt of the local price rises in resorts they are visiting this summer.”
