The Algarve region in Portugal has been identified as Europe's top value destination for family holidays this summer, according to the latest Post Office Family Holiday Costs Barometer. Moving up from third place last year, the popular southernmost coast now leads the ranking for affordability, offering significant savings on a basket of typical tourist purchases.
The annual report assessed the cost of ten essential holiday items across 22 European resorts. This basket included a cup of coffee, a bottle of beer, a can of cola, a glass of wine, a bottle of mineral water, suncream, insect repellent, two children's pizzas, a two-course lunch for adults, and a three-course family meal including wine and soft drinks. For 2026, these ten items collectively cost approximately £140 in the Algarve. Individual item costs included a cup of coffee at £1.27, suncream at £9.95, and a two-course lunch for two adults priced around £20.97.
Following closely behind the Algarve for value was Sunny Beach, Bulgaria, with the same basket of items costing £142. This Black Sea resort offered the cheapest family evening meal with drinks, at £73, compared to £78 in the Algarve. Lanzarote in the Canary Islands secured third place, with the typical basket costing £147. Other Spanish destinations, including Menorca (£151) and the Costa Brava (£155), also featured prominently in the top five, indicating strong value across the Iberian Peninsula.
Despite challenges, resorts in Turkey and Cyprus, such as Marmaris and Paphos, continued to offer good value and rounded off the top ten. The report also noted price reductions in Malta (£181) and Ibiza (£212) for the ten surveyed items. Conversely, Sorrento in Italy was identified as the most expensive destination, with the barometer basket costing almost double that of the Algarve, at £268. The study expanded its scope this year to include six new resort areas, including Costa Blanca, Costa Brava, Menorca, Sorrento, Tenerife, and Zadar, to reflect increased demand for Western European holidays.
Laura Plunkett, head of Post Office Travel Money, highlighted the significant price variations across European resorts, urging families to research costs before travelling. She commented that for those yet to book, the low resort prices in Portugal and Spain, along with Bulgaria's Black Sea resorts, present excellent value for money.