The Algarve in Portugal has been named the cheapest European beach destination for families in the Post Office's 18th annual Family Holiday report. With a total cost of £139.65 for 10 tourist items, including meals, drinks, suncream and insect repellent, it topped the list ahead of Sunny Beach in Bulgaria (£142.16) and Lanzarote in the Canary Islands (£147.42).
Prices fall in Algarve while others rise
The report, created in partnership with TUI, found that prices in the Algarve fell 2.7% since 2025, while many other destinations saw increases. The average price of a beer in the Algarve is £2.62, and a three-course family evening meal with wine and soft drinks costs £77.79.
Sunny Beach in Bulgaria saw a 9.3% rise in costs, which the report speculated may be linked to Bulgaria joining the eurozone. Despite this, it still offers the cheapest family evening meal with drinks at just over £73, compared with £78 in the Algarve and £76 in Menorca.
Spain dominates top 10
Spain has six destinations in the top 10 best-value list, including Lanzarote (third), Menorca (fourth), Costa Brava (fifth), Tenerife (sixth), Costa del Sol (eighth) and Costa Blanca (ninth). Marmaris in Turkey placed seventh, and Paphos in Cyprus rounded out the top 10.
The most expensive resort was Sorrento in Italy at £268.23, nearly double the cost of the Algarve and Sunny Beach. Funchal in Madeira (£260.21) and Crete (£221.57) were second and third most expensive respectively.
Post Office comments on value
Laura Plunkett, Head of Post Office Travel Money, said: “It’s not a surprise that our colleagues at TUI found price rises in some of the most popular European holiday destinations as the impact of the war in the Middle East causes widespread cost of living pressures. Fortunately, sterling has proved remarkably resilient in recent weeks and has seen its value rise against the euro in particular.”
The Post Office described the Algarve as a “great choice” for a simple family beach holiday, offering attractions, beaches and eateries. Popular resort destinations include Albufeira, Vilamoura and Lagos.
