The best-value places for family holidays have been revealed, with destinations in Portugal, Bulgaria and Spain offering the lowest costs among 22 European hotspots surveyed.
The latest Post Office Travel Money Family Holiday Report, produced in partnership with TUI, found holiday costs of tourist items varied by as much as 92% between destinations.
The data compares the cost of everyday holiday essentials and typical family spending items across destinations, including suncream, a cup of coffee and a three-course family meal including wine and soft drinks.
The Algarve topped the 2026 Family Holiday Costs Barometer, with a basket of 10 typical tourist items for a family of four costing £140. The Portuguese region moved up from third place last year after prices fell by 2.7%.
Bulgaria’s Sunny Beach ranked second at £142, while Lanzarote’s Costa Teguise came third at £147.
Six Spanish destinations featured in the top 10 best-value list, including Menorca (£151), Costa Brava (£155), Tenerife (£158), Costa del Sol (£163) and Costa Blanca (£173).
Turkiye’s Marmaris placed seventh at £159, while Cyprus’ Paphos completed the top 10 at £177. Both destinations have seen demand impacted by the ongoing conflict in the Middle East, but continue to offer competitive prices for travellers making late bookings.
The report found the biggest price gap was between the Algarve and Sorrento, the most expensive destination surveyed, where the same basket of items cost £268, almost double the Portuguese region.
Sorrento’s higher costs were partly driven by family dining prices, with an evening meal and drinks costing £150 compared with £78 in the Algarve.
Head of Post Office Travel Money Laura Plunkett said the findings showed families should compare costs carefully when planning their holidays.
She added: “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.”
The research comes as three in five families said they are planning an overseas trip during the summer holidays, although 85% admitted they had exceeded their budget on their last holiday.
TUI UK & Ireland Commercial Director Chris Logan said: “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 Turkiye remain very popular, particularly with families, thanks to their strong mix of quality and value, plus there is still good availability for this summer, including our owned hotel products such as TUI BLUE and Holiday Village.
“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.”
The top 10 best value destinations:
- Algarve
- Sunny Beach
- Lanzarote
- Menorca
- Costa Brava
- Tenerife
- Marmaris
- Costa del Sol
- Costa Blanca
- Paphos
