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Algarve Named Cheapest European Family Holiday, Post Office Finds

Falling local prices with a stronger pound boost UK families’ buying power in Portugal and parts of Spain this summer.

Overview

  • The Post Office Travel Money Family Holiday report, published on Friday, July 17, used on-the-ground price checks by Tui to rank 22 popular European resorts by the cost of a 10-item tourist basket.
  • The Algarve topped the list with the basket costing £139.65, a 2.7% fall from a year earlier, making it the cheapest place for everyday holiday purchases such as a three-course family meal and suncream.
  • Sunny Beach in Bulgaria, the Canary Islands, Menorca and Spain’s Costa Brava also ranked among the most affordable resorts while Sorrento and Funchal in Madeira were near the most expensive end of the list.
  • The report highlights large local swings: Funchal recorded the biggest rise at about 36.1% and Marmaris moved from first to seventh after prices climbed roughly 22.7%, changes linked to altered demand after the Iran war this spring.
  • The comparison excludes flights and accommodation so total trip costs will vary, and the report warns that sterling’s strength and shifting bookings toward western Europe could change where UK families find the best overall value.