The Algarve, a 150-mile stretch of sun-drenched coastline in southern Portugal, has been identified as the cheapest European holiday destination for UK sunseekers, according to an analysis by Post Office Travel Money. The study of 22 popular resorts found that the Algarve offers the lowest prices for goods commonly bought by tourists, such as evening meals, drinks, snacks, and sun cream.
Algarve's Appeal: Low Prices and Fewer Crowds
While the Algarve has become a popular choice for British travellers, its wealth of options means visitors can avoid the overwhelming crowds seen in more crowded destinations like Spain, Italy, and Greece. Standout locations include Albufeira, a coastal city known for its vibrant nightlife, and Praia Da Luz, a tranquil spot famous for its volcanic rock formations, hailed by one TripAdvisor visitor as the "best family beach in the whole Algarve." The region enjoys average temperatures of 20-30°C in July and August, according to travel firm TUI.
Cost Comparison: Algarve vs. Other Destinations
The Family Holiday Costs Barometer, which compares prices for a basket of typical holiday items, placed Sunny Beach on Bulgaria's Black Sea coast in second place, followed by Lanzarote in third. At the other end of the scale, Sorrento, Italy, was the most expensive resort analysed, with prices nearly double those in the Algarve. The typical cost of a three-course meal for a family of four, including wine and soft drinks, was £150 in Sorrento compared to just £78 in the Algarve.
Expert Insights on Holiday Costs
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 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."
Chris Logan, UK and Ireland commercial director of TUI, which researched prices for the report, added: "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 Turkey remain very popular, particularly with families, thanks to their strong mix of quality and value."
The barometer does not include the cost of travel or accommodation, which can vary significantly throughout the year.
