The best destinations & 5-star resorts where holidays are £500pp or less

WITH the soaring cost of living, £500 doesn’t get you far as it once did. It’ll just about cover the average bills for a UK household or a shiny new iPad or games console.
But if you trade in the British high steet for a boarding pass, that same budget can work absolute miracles on a holiday abroad.
As the resident Holiday Expert at On the Beach, I’ve been digging through our latest booking tech to find out exactly where British couples are flying for £500 per person.
While some destinations force you to compromise on your stargazing (hotel stars, that is), others are letting you live like royalty for less.
Here is everything you need to know about what a £500 holiday looks like right now, from destination to star-rating.
Where does £500 take you right now?
Most Brits with £500 to spend on a holiday end up on a Spanish beach.
Our data shows the Canary Islands and mainland Spain are the most popular destinations, especially for couples within this price band.
But popularity doesn’t always equal the biggest value haul. While the masses fight over towel space in Spain, a savvy minority are flying past the western Med to Turkey and Egypt.
They might not pull the same volume of bookings as Spain, but they offer a much bigger bargain.
For example, you can currently fly to Side in Antalya, Turkey, for a 7-night getaway at the ultra-plush, 5-star La Benata Hotel for exactly £500 per person.
It sits right on its own private beach, along with waterslides on a sprawling pool layout.
Getting a full week at a bona-fide 5-star property on an All-Inclusive basis, with direct flights from East Midlands? An absolute steal.
What kind of hotel does £500 get you right now?
You might think a £500 budget means settling for a basic, creaky two-star hotel with a brick-wall view. Happily, you’d be dead wrong.
Our data shows that 4-star hotels are the sweet spot.
If you head to mainland Spain, the Balearics, Greece, Portugal, Italy, or Tunisia, the vast majority of £500 packages land you a very respectable 4-star property.
But if you want to find the poshest hotel for £500, Turkey and Egypt are the ultimate luxury outliers.
In Egypt, a staggering 60 per cent or more of bookings at this price point are for 5-star luxury.
You can lock in a 7-night, completely All-Inclusive stay at the 5-star Il Mercato Splash Aqua Park in Sharm El Sheikh for just £475 per person, including direct flights from East Midlands.
It is positioned right on the bustling Il Mercato Promenade, which means you have endless shopping and entertainment right on your doorstep.
There’s also a free shuttle service to zip you down to the private beach club whenever you fancy.
How many nights does £500 get you right now?
If £500 is your budget for the holiday, you can either have a full week away or a higher-quality but shorter break.
Our data shows that a full seven nights is still the most popular duration overall, and you can find holidays for this much in the Canaries, Turkey, Greece, Egypt, and Tunisia for under £500.
But if you look at mainland Spain, the Balearics, Portugal, Italy, and Malta, the most popular duration pivots to a sharp four-night break.
For example, you can secure a four-night escape to the 4-star Gran Garbi Hotel in the lively heart of Lloret de Mar for a mere £305 per person, flying directly from Bournemouth.
What makes this an absolute game-changer is that while the average short-stay break in Spain only includes a simple Bed and Breakfast, this deal upgrades you to an all-inclusive package.
Even better, it grants you free entry to the nearby Aqua-Splash waterpark, meaning you are effectively getting a week’s worth of food, drink, and waterpark entertainment packed into a high-octane 4-night luxury budget window.
And that leaves you with nearly £200 change from your £500 budget to play with.
What’s included for £500 right now?
How do you like your breakfast?
If you want to book a holiday in mainland Spain, Portugal, Italy, or Malta for £500, you’ll likely get it included in your stay.
But if you opt for the Canaries, for £500, you’ll most likely need to opt for self-catering.
If your idea of a holiday involves completely locking your wallet in the hotel safe the second you arrive, all-inclusive is king.
It’s the most popular option in the Balearics and Greece as well as Egypt and Tunisia.
An astonishing 98 per cent of British holidaymakers going to Egypt and more than 95 per cent of those going to Tunisia book all-inclusive trips for under £500-a-week.
Turkey isn’t far behind either, with All-Inclusive capturing around 77 per cent of the market.
Choosing a “no wallet, no worries” deal is the ultimate way to beat inflation.
This is because when your flights, hotel, meals, and drinks are completely covered for under £500, the cost-of-living crisis officially pauses at the departure gate.
One example is you can head out on a massive 10-night holiday to the 4-star Nesrine in Hammamet Yasmine, Tunisia, for just £410 per person, flying direct from London Southend.
From the beautiful, authentic Moorish architecture and the outdoor pool to a private, white sand beach paradise and an energetic entertainment team.
And you know it is all covered, meaning you can max out your relaxation.
The lesser-known beach destinations Brits are opting for right now for under £500
If you want to truly travel better for less, you need to look where the crowds aren’t looking. Because once a resort gets flooded with British tourists, the prices rocket.
To get a bargain that leaves you feeling incredibly smug, these five lesser-known, off-the-radar beach gems are where savvy holidaymakers are booking right now for maximum bang for their buck.
Mijas, Costa del Sol, Spain
Think the Costa del Sol is all crowded strips and overpriced tourist menus? Think again – as Mijas gives you the best of both worlds.
You have a gorgeous, traditional white-washed Andalusian village in the hillside with cobbled streets and sweeping Mediterranean views, while Mijas Costa serves up a stunning, pristine seven-mile stretch of golden sand just below.
It’s a pure beach haven right near Marbella but without the eye-watering premium price tag.
You can snap up a four-night stay at the 4-star Gran Hotel Costa Del Sol right in La Cala De Mijas for £305 per person, flying directly from Bournemouth on an all-inclusive package.
Mahdia, Tunisia
Mahdia is Tunisia’s calmer, historic fishing town where the streets are quiet, the sea is a deep blue, and the white-sand beaches look almost like they’ve been photoshopped.
You can easily nab a full week of luxury here for under £500. For instance, a seven-night getaway to the magnificent 5-star Nour Palace Resort costs just £405 per person, flying directly from Newcastle.
It boasts a massive, free-form outdoor lagoon pool that is just steps away from a private beach, giving you five-star all-inclusive indulgence with just under £100 to spare.
Ovacik, Turkey
If you want a Turkish mountain escape that feels exclusive but keeps costs low, Ovacik is the place to go.
Tucked away in the picturesque hills near Fethiye and the famous Blue Lagoon of Oludeniz, it offers a calmer atmosphere surrounded by pine forests and fresh mountain air.
You can lock in a seven-night escape here at the 4-star Sahra Su Holiday Village & Spa for just £315 per person, with direct flights from London Gatwick.
The hotel is styled like a luxury holiday village with swim-up rooms, thatched-roof bungalows, and a series of crystal-clear pools tucked between manicured lawns and palm trees on a fully all-inclusive basis.
Nabq Bay, Egypt
Sharm El Sheikh has plenty of famous bays, but Nabq Bay is the rising star for sheer value.
Sitting just up the coast, it looks right out over Tiran Island and boasts incredible coral reefs for world-class snorkelling.
Because it’s a newer resort development, Nabq Bay feels ultra-polished, where a £500 budget makes you feel like an absolute VIP.
You can secure a full week at the five-star Parrotel Lagoon Resort for just £455 per person, flying directly from East Midlands.
This resort is brilliant because it features its own multi-slide aqua park right onsite, alongside a sprawling pool and five-star dining options that will forever ruin you for a budget buffet.
Guardamar del Segura, Costa Blanca, Spain
Benidorm can keep its neon lights; Guardamar is the Costa Blanca’s best-kept secret.
Famous for its stretch of fine, powdery dunes backed by a lush pine and eucalyptus forest, this town is loved by Spanish locals, so you know you’re in the right place.
That means the tapas bars are authentic and the hotel prices haven’t been inflated by an influx of Brits just yet.
You can book a full seven-night stay at the 5-star Alannia Guardamar for just £450 per person, flying directly from Glasgow Prestwick.
While on a self-catering basis, the hotel itself makes up for it with everything from a tropical pool area complete with waterfalls, bridges, and a line-up of waterslides to luxury villas and a hidden-gem beach.








