The Algarve in Portugal is the cheapest holiday destination for Britons in 2025, according to the 19th annual Post Office Travel Money report, which examines exchange rates and the cost of eight travel items, including drinks and meals,
60% of Britons chose to holiday abroad
The report also reveals the results of a poll of 2,001 adults in the UK, which shows that 60% will travel abroad in 2025 – up from 51% a year ago. In fact, 44% of them have already booked their holidays. Almost three-quarters (73%) of them chose Europe.
A quarter (26%) are waiting to see if they can get a discount on a late booking, while almost one in five (18%) said they need to save more money before booking their trip.
Cheapest destinations
The report also revealed that 29 of the Post Office’s 30 best-selling currencies have weakened against sterling in the past two years.
In its largest cost barometer across 47 destinations worldwide, the Post Office Travel Money report found that prices for eight items – a three-course meal for two with wine, a cup of coffee, a bottle of local beer, a can of coke, a glass of wine, a bottle of water, sunscreen and insect repellent – ??are half as cheap at the resorts surveyed as they were a year ago.
Based on this analysis, the best value destinations for Brits are:
The Algarve in Portugal is the cheapest holiday destination this year, with the cost of 8 items coming in at £58.95
Cape Town in South Africa retains second place, despite an 11% increase in prices compared to last year
Tokyo, Japan, moves up to third place, although prices have increased by 7.4% year-on-year
Bali moves up to fourth place, with a total holiday cost of £68.88, a 5% increase on last year
Delhi moves up from 13th place last year to fifth this year, as local prices fall by 10%.
Prague re-enters the top 10 in eighth place after prices fell by more than 20%
Hoi An, Vietnam, drops from first place last year to seventh this year as local costs rise by 41.3%
Phuket, Thailand, returns to the top 10, taking ninth place, with costs falling by 2.7%
Punta Cana, Dominican Republic, sees the biggest price drop, down 26%. It is the only Caribbean destination to make the top 20
New York is the most expensive city in the survey, with costs rising by 15.6% to £167.85 this year.
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