Families looking to save money on their summer getaway could find the best value in Portugal, Bulgaria and Spain.New research has revealed the cheapest European holiday destinations for UK travellers.The cheapest places for UK families booking European holidays have been shared in the 2026 Post Office Travel Money Family Holiday Report.The study compares the cost of everyday holiday essentials across 22 popular destinations.Laura Plunkett, head of Post Office Travel Money, said: ‘We found big variations in costs between the European resorts surveyed, which means it is more important than ever to do some research before heading off on your holiday.’Here are the hotspots that are currently easiest on family holiday budgets…1. Algarve, Portugal Taking the gold medal as the cheapest spot is Portugal’s AlgarveThe Algarve in Portugal has been crowned the most affordable resort for families, according to the 2026 Post Office Travel Money Family Holiday Report.At £139.65 for a basket of ten key purchases, including lunch and evening meals for a family of four, a range of drinks, sun cream and insect repellent, the Algarve offers the lowest overall prices – and costs have fallen by 2.7 per cent since last July.Holidaymakers can expect to pay just £1.27 for a coffee, £2.62 for a beer and £3.49 for a glass of wine, making it one of the best-value spots for families watching their spending.2. Sunny Beach, Bulgaria In second place, taking the silver medal, is Sunny Beach in BulgariaSunny Beach on Bulgaria’s Black Sea coast came in second place with a total cost of £142.16.Having finished second last year, Sunny Beach has retained its runner-up position in this year’s barometer even though prices have risen by 9.3 per cent. The Black Sea resort boasts the cheapest family evening meal with drinks, priced at £73, compared with £78 in the Algarve. 3. Lanzarote, Canary Islands Taking the bronze medal in the full list is Lanzarote, situated in the Canary IslandsLanzarote takes third place at £147. Prices fell by 2.8 per cent in top resort Costa Teguise. As a result, Lanzarote is the highest-placed of eight Spanish destinations included in this year’s Family Holiday Costs Barometer. Ideal for a combination of beach days, hiking and exploring volcanic landscapes, head to Lanzarote this summer for a budget-friendly break. 4. Menorca, Balearic Islands Next up is Menorca in the Balearic Islands, known for its dreamy beachesComing in at £151 for ten tourist items including food and drinks, Menorca took the fourth position in the ranking.Not only does this holiday hotspot home to very reasonably priced meals, with an average two-course lunch for two adults £27.96, but plenty of other travel essentials come in at prices that would surprise even the most frugal of Brits. Coffee for £2.18, a beer £3.06, and a glass of wine just £3.93 solidify Menorca’s well-founded credentials as a destination that goes easy on your wallet. 5. Costa Brava, Spain Next up is fellow Spanish holiday hotspot, the Costa BravaMeanwhile, the Costa Brava (£155) took fifth place in the Post Office list.The Costa Brava has long been a favourite among Britons, with the most popular destinations including Lloret de Mar and Platja d’Aro.Once there, you hardly have to break the bank to have a good time, as Post Office research shows an average beer costs £2.23, while a three-course family meal including wine and soft drinks will set you back £86.73.6. Tenerife, Canary Islands Tenerife in the Canary Islands scoops up the sixth place awardTenerife in the popular Canary Islands came in sixth place with a total cost of £158.31. The largest of Spain’s Canary Islands, it has many beaches adored by families, such as the Playa de las Américas, and is also full of volcanic terrain to explore, festivals and resorts. In terms of price, it’s staying firmly in the low-budget category, with coffee costing £1.75, beer £2.62 and insect repellent just £5.24, on the lower end of the list.7. Marmaris, Turkey In spot number seven in the Post Office list is Marmaris, TurkeyResorts in Turkey remain good value, even though the country was negatively affected by the ongoing war in the Middle East. Despite the continuing fall in value of the Turkish lira, down almost 10 per cent year-on-year, the barometer cost for Marmaris has risen by 23 per cent to £159. As a result, the Turkish resort has fallen from top place a year ago to seventh in the new table. The town is packed with family-friendly accommodation, and families can mix lazy beach mornings with boat trips along the coast, water-based activities, or interactive excursions.8. Costa del Sol, Spain The Costa del Sol comes in eighth place on the rankingLong time favourite the Costa del Sol came eighth with a barometer total of £163. There are plenty of bargains to be had – the Post Office report found the cost of coffee to be £1.75, beers for just £2.97 and three-course meals for less than £82.Some of the most popular areas here include Malaga, Marbella, Puerto Banús and Nerja.9. Costa Blanca, Spain In ninth place in the full list of family destinations is the Costa Blanca in SpainThe Costa Blanca in Spain has an overall cost of £173.41 – and individual prices to brag about, including beer for £3.49 and two-course lunches for £31.45.It’s home to some of the country’s best, cleanest beaches, too. This year, Spain has hit a new record, with 794 beaches awarded the Blue Flag title – 151 of which can be found across the Costa Blanca region.’Blue Flag’ status is among the most coveted by coastal havens, signifying that a beach meets high standards for water quality, hygiene and facilities.10. Paphos, Cyprus Rounding out the top 10 in the list is Paphos, CyprusThe final spot in the top ten was Paphos in Cyprus, with an overall cost of £177.18.The 18th annual report comes as it is revealed 46 per cent of UK families will be setting a higher budget to allow for increased prices this summer.However, the research found 85 per cent of families exceeded the budget they had set by 49 per cent on their last trip, spending £380 extra on the average budget of £771. Family holiday costs barometer 2026 1. Algarve, Portugal2. Sunny Beach, Bulgaria3. Lanzarote, Canary Islands4. Menorca, Balearic Islands5. Costa Brava, Spain6. Tenerife, Canary Islands7. Marmaris, Turkey8. Costa Del Sol, Spain9. Costa Blanca, Spain 10. Paphos, Cyprus11. Sliema, Malta 12. Kos, Greece13. Rhodes, Greece14. Porec, Croatia15. Puglia, Italy16. Corfu, Greece17. Zadar, Croatia18. Ibiza, Balearic Islands19. Majorca, Balearic Islands20. Crete, Greece21. Funchal, Madeira22. Sorrento, Italy Source: Post Office Travel Money <!- – ad: https://mads.dailymail.co.uk/v8/us/travel/none/article/other/mpu_factbox.html?id=mpu_factbox_1 – ->
Meals and drinks are key factors contributing to this overspending.On the other end of the scale, Italy’s Sorrento was named the most expensive resort in this year’s survey, with an average cost of £268. The high cost of a family evening meal contributed significantly, with a typical dinner for four costing £150. Prices in Sorrento were found to be almost a third higher than in another Italian destination and almost double the cost in the winning Algarve. Laura Plunkett, head of Post Office Travel Money, which accounts for one in four UK currency transactions, said: ‘We found big variations in costs between the European resorts surveyed, which means it is more important than ever to do some research before heading off on your holiday to inform how much holiday cash you’ll need for meals, drinks and other tourist staples.‘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.’