Families planning a European getaway this summer may find the best value for money in Portugal's Algarve region. New research from the Post Office's annual Family Holiday Costs Barometer for 2026 places the Algarve at the top of its list, having moved up from third place last year. The report, which assesses the cost of ten typical tourist items, found that these essentials totalled approximately £140 in the popular Portuguese destination.
The Post Office's barometer evaluated the cost of items such as a cup of coffee, a bottle of beer, suncream, insect repellent, two children's pizzas, a two-course lunch for adults, and a three-course family meal including wine and soft drinks. In the Algarve, a cup of coffee was priced at a mere £1.27, suncream at £9.95, and a two-course lunch for two adults came in at around £20.97. While the report offers valuable insights into on-the-ground spending, it's important to note that flight and accommodation costs were not included in this particular comparison.
Following closely behind the Algarve for value was Sunny Beach, Bulgaria, where the same basket of items cost an average of £142. This Black Sea resort notably offered the cheapest family evening meal with drinks, priced at £73, compared to £78 in the Algarve. Spain also featured prominently in the top ten, with Costa Teguise on Lanzarote ranking third at £147, Menorca fourth at £151, and the Costa Brava taking fifth place at £155.
The study, which surveyed 22 destinations and included six new resort areas such as Costa Blanca and Sorrento, highlighted significant price disparities across Europe. Sorrento, Italy, emerged as the most expensive location, with the barometer basket costing almost double that of the Algarve at £268. Overall, prices for the surveyed items varied by as much as 92 per cent between the cheapest and most expensive destinations.
Laura Plunkett, head of Post Office Travel Money, emphasised the importance for holidaymakers to research costs before travelling. She noted that for families yet to book, the low resort prices in Portugal and Spain, along with Bulgaria's Black Sea resorts, present strong contenders for value-for-money holidays this summer.