Portugal's Algarve Tops List of Most Affordable European Family Holidays

Portugal's Algarve region has been named the most affordable European destination for families, according to the 2026 Post Office Travel Money Family Holiday Report. The study, which compares the costs of essential holiday items across 22 popular destinations, found the Algarve to be the best-value spot for UK travelers.

The Algarve offers a basket of ten key purchases, including family meals, drinks, sun cream, and insect repellent, for £139.65. Prices in the region have decreased by 2.7 percent since July of the previous year. Holidaymakers can expect to pay approximately £1.27 for coffee, £2.62 for a beer, and £3.49 for a glass of wine.

Sunny Beach in Bulgaria secured the second position with a total cost of £142.16 for the same basket of goods, despite a 9.3 percent price increase. The resort boasts the cheapest family evening meal with drinks at £73, compared to £78 in the Algarve.

Lanzarote in the Canary Islands, Spain, ranked third with an overall cost of £147. Prices in the resort of Costa Teguise fell by 2.8 percent, making it the highest-placed among eight Spanish destinations featured in the report. Lanzarote is noted for its beaches, hiking opportunities, and volcanic landscapes.

Menorca, also in Spain's Balearic Islands, took fourth place with a cost of £151 for the ten tourist items. The report highlights reasonably priced meals, with an average two-course lunch for two adults costing £27.96. Coffee is priced at £2.18, beer at £3.06, and wine at £3.93.

Costa Brava, another Spanish holiday spot, came in fifth at £155. Popular areas like Lloret de Mar and Platja d'Aro offer an average beer price of £2.23 and a three-course family meal with drinks for £86.73.

Tenerife, in the Canary Islands, followed in sixth place at £158.31. The largest of the Canary Islands, it offers beaches and volcanic terrain. Coffee costs £1.75, beer £2.62, and insect repellent £5.24 in Tenerife.

Marmaris, Turkey, ranked seventh with a barometer cost of £159, an increase of 23 percent despite a fall in the Turkish lira's value. The resort offers family-friendly accommodation and coastal activities.

Costa del Sol, Spain, placed eighth with a total of £163. Coffee is priced at £1.75, beers at £2.97, and three-course meals under £82 in popular areas such as Malaga and Marbella.

Costa Blanca, Spain, came in ninth with an overall cost of £173.41. Beer is £3.49, and two-course lunches are £31.45. The region boasts a significant number of Blue Flag beaches, signifying high standards for water quality and facilities.

Paphos, Cyprus, rounded out the top ten at £177.18.

The report also noted that 46 percent of UK families are increasing their holiday budgets for the summer due to rising prices, while 85 percent exceeded their set budgets by an average of 49 percent on their last trip. Sorrento, Italy, was identified as the most expensive resort in the survey at £268, with a family evening meal costing approximately £150.