SCHOOL’S out for summer. And if you’re one of the many strapped-for-cash Brits who has yet to book their family getaway, listen up.
The Algarve is the cheapest holiday destination for families in 2026 offering bargain food and drinks among other holiday essentials.
The Portuguese resort was crowned the most budget-friendly of 22 European holiday destinations in The Post Office Travel Money’s annual Family Holiday Costs Barometer.
Conducted in partnership with TUI, the research looked into the average price of ten typical getaway items for a family of four in some of the most popular short-haul holiday destinations.
These items included a cup of coffee, a bottle of beer/lager, a can of cola, a glass of wine, a large bottle of water, sun cream, insect repellent, children’s pizza or pasta, a two-course lunch for two adults and a three-course family meal with wine and soft drinks.
Overall, the Algarve was shown to be the least damaging to wallets with a total cost of £139.65 for all the above items.
This is a 2.7 per cent dip in overall costs from the previous year, pushing the sun-soaked region ahead of Bulgaria’s notoriously affordable Sunny Beach on the budget scale.
Sunny Beach still came in second place overall, however, despite a staggering 9.3 per cent hike in costs since 2025, with all ten holiday items coming in at a total of £142.16 — just a few quid more than the Algarve.
It is still the most affordable place for a meal out, though.
According to the research, dinner for a family of four will set the average holidaymaker back around £73, compared with £78 in the Algarve.
In general, the report looks promising for Brits who love Spain’s gorgeous costas and islands, too.
On the whole, the country was shown to be widely affordable with six destinations making it into the top ten most budget-friendly regions for 2026.
The Canary isle of Lanzarote came in third place with overall costs of £147.42.
It was shown to be the cheapest spot for both a bottle of beer (£2.18) and adult lunch (£15.73), although some items like sun cream were found to be a bit more pricey.
Menorca, the Costa Brava and Tenerife came in fourth, fifth and sixth place on the list, with overall holiday item costs of £151.28, £155.02 and £158.31 respectively.
Each of these Spanish hot spots is new to the barometer for 2026, with TUI reporting increased demand for these destinations and Western Europe on a whole this year.
In all three holiday regions, a glass of wine was shown to be under £4 on average, with tipples in the Costa Brava and Tenerife costing less than they would in the Algarve.
On the other hand, if you’re a family with multiple hungry mouths to feed, you may want to set your sights on Marmaris, which came in seventh place overall.
TOP TEN BARGAIN DESTINATIONS
- The Algarve, Portugal (£139.65)
- Sunny Beach, Bulgaria (£142.16)
- Lanzarote, Spain (£147.42)
- Menorca, Spain (£151.28)
- Costa Brava, Spain (£155.02)
- Tenerife, Spain (£158.31)
- Marmaris, Turkey (£158.33)
- Costa del Sol, Spain (£163.17)
- Costa Blanca, Spain (£173.41)
- Paphos, Cyprus (£177.18)
According to the report, this Turkish destination has the most affordable kids meals of all 22 spots, setting holidaymakers back £10.24 on average for pizza or pasta for two kids.
That’s over £3 cheaper than in the winning budget destination, the Algarve, and could make a huge difference on a week-long getaway.
Completing the top ten chart are Spain’s Costa del Sol and Costa Blanca, plus Paphos in Cyprus, coming in eighth, ninth and tenth place respectively with barometer costs of £163.17, £173.41 and £177.18.
Laura Plunkett, head of Post Office Travel Money, said: “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.”
At the opposite end of the scale, Italy’s Sorrento appeared to be the most expensive of all 22 destinations, with all ten of the holiday essentials costing £268.23 in total — almost double the price of the same items in the Algarve.
Holidaymakers visiting this Italian gem would be shelling out around £5.68 for a bottle of beer, £4.37 for a cup of coffee and a staggering £150.28 for a three-course family meal. Mamma Mia!