Algarve named cheapest short-haul destination following summer price drop

Resort prices in the Portuguese Algarve have fallen since last summer to make it the cheapest of more than 20 short-haul overseas destinations surveyed this year.

 

At £140 for a basket of 10 tourist items, including lunch and evening meals for a family of four, a range of drinks, suncream and insect repellent, costs have fallen by 2.7% since last July, new research reveals.

 

This enabled Portugal’s top holiday destination to emerge as the cheapest of 22 European resorts researched for the latest Post Office Travel Money family holiday report produced alongside Tui.

 

The Algarve has overtaken both Marmaris in Turkey and Bulgaria’s Sunny Beach as the best value for resort items.

 

Sunny Beach retains its runner-up place even though prices have risen year on year by 9.3% to £142, likely due to the impact on prices with Bulgaria joining the eurozone in January. 

 

However, the Black Sea resort still claims the most inexpensive family evening meal with drinks, priced at £73, compared with £78 in the Algarve.

 

Lanzarote came third in this year’s comparison of prices, which were researched in 22 resorts by Tui and converted to sterling by Post Office Travel Money.

 

Prices fell by 2.8% to £147 in the resort of Costa Teguisem making it the best value out of eight Spanish destinations surveyed.

 

Four of these were among six new resort areas - Costa Blanca, Costa Brava, Menorca, Sorrento, Tenerife and Zadar – appearing in this year’s cost comparison to meet increased demand for holidays in western Europe reported by Tui.

 

Keen pricing in the four new Spanish resorts enabled them to feature alongside Lanzarote and the Costa del Sol in the best value top 10.

 

At £151, Menorca was highest-placed in fourth position, while the Costa Brava (£155) took fifth place, followed by Tenerife (sixth, £158) and the Costa Blanca (ninth, £173). The Costa del Sol came eighth with a barometer total of £163.

 

Despite the continuing fall in value of the Turkish lira, down almost 10% year on year, the barometer cost for Marmaris has risen by 23% to £159. 

 

As a result, the Turkish resort has fallen from top place a year ago to seventh in the new table. 

 

Rates have also risen by nearly 23% to £177 in Paphos, which means the Cypriot resort has dropped six places to 10th in this year’s barometer.

 

Yet resorts in Turkey and Cyprus remain good value for late bookings, having both been negatively affected by the ongoing war in the Middle East, the report noted.

 

Sorrento is rated the most expensive resort in this year’s survey, with a cost of £268, partly due to the high cost of a family evening meal at £150. 

 

Prices in Sorrento were found to be almost a third (32%) higher than in another Italian destination, Puglia (15th, £203), and almost double the cost in the Algarve.

 

Costs varied by as much as 92% across the 22 destinations surveyed and there were big differences between resorts in the same country as well. In Greece, for example, the barometer totals ranged from £181 in Kos to £222 in Crete. 

 

The 18th annual report comes as three-in-five families polled said that they are planning trips abroad during the summer with almost half (46) setting a higher budget to allow for increased prices.  

 

However, the consumer research conducted for the report found that over four-in-five (85%) of them bust the budget they had set by 49% on their last trip, spending £380 extra on the average budget of £771. 

 

Meals and drinks are key factors that account for the high levels of  overspending.  More than four-in-five (85%) of parents spent an average of £359 on eating out, buying drinks in bars and restaurants and shop-bought food and drinks.  

 

Head of Post Office Travel Money Laura Plunkett said: “We found big variations in costs between the European resorts surveyed, which means it is more important than ever to do some research before heading off on your holiday to inform how much holiday cash you’ll need for meals, drinks and other tourist staples. 

 

“For those families who haven’t already booked and are looking for a late deal, the low resort prices in Portugal and Spain make these countries great value for money, while Bulgaria’s Black Sea resorts are strong contenders too.”

 

Tui UK & Ireland commercial director Chris Logan added: “We’ve seen particularly strong demand for popular western Mediterranean destinations, with holidaymakers continuing to choose trusted, well-established resorts that offer a familiar holiday experience.

 

“However, Cyprus and Turkey remain very popular, particularly with families, thanks to their strong mix of quality and value, plus there is still good availability for this summer.

 

“Families can still secure a great deal for this summer, including free kids’ places, with both destinations continuing to offer excellent value for money. It’s also encouraging to see confidence following a brief period of uncertainty.”