The cheapest holiday destinations for 2011

We reveal which are the cheapest (and most expensive) holiday destinations this year...

At this time of year, the prospect of a holiday would certainly cheer many of us up. After all, the idea of sipping cocktails on a hot, sunny beach instead of being stuck in the gloom and the cold is a much more appealing prospect – at least, to me it is.

Sadly, however, holidays don’t come cheap. So if you’re after a bargain, let’s take a look at the cheapest (and most expensive) holiday destinations right now.

Cheap and cheerful

Families looking for the best value holiday should head to Portugal or Spain, according to the latest figures from the Post Office.

The Post Office Worldwide Holiday Costs Barometer looks at the price of eight popular tourist items, including dinner for two, refreshments and sun cream, in 36 destinations across the globe.

According to its calculations, Portugal is the cheapest destination after prices there fell 49% in the past year. This was due to a 7.4% rise in Sterling’s value against the Euro and a drop in resort costs.

Meanwhile, Spain took second place after prices were slashed to their lowest levels in three years in a bid to win back UK holidaymakers.

Related how-to guide

Have a cheap holiday

Find out how to cut the cost of your flights, get discounts, tip correctly, spend wisely, get cashback and most importantly, cut the cost of your holiday.

See the guide

Go the distance

In contrast, anyone wishing to jet off further afield is likely to be forking out far more money. Indeed, according to the Post Office report, tourists travelling to the Far East will get a lot less for their pounds after the Thai baht and the Malaysian ringgit strengthened against Sterling.

As a result, resorts here are now more expensive than in Sri Lanka which has been rated the cheapest long haul destination.

The only longer haul destinations where Sterling has strengthened compared with last year are Kenya and Egypt.

Meanwhile, the most expensive holiday destinations in the survey were Australia, Hong Kong and Canada.

At a glance

The table below shows how much a typical basket of goods costs in various popular destinations (this runs from the cheapest to most expensive). The basket includes coffee, beer, cola, water, sun cream, insect repellent, packet of cigarettes, and a three course evening meal for two, including wine. (Based on resort prices.)

How to get there

The one drawback to this research is that flight costs have not been included. And let’s face it, the price of a flight is a pretty significant part of your holiday costs.

So I’ve done a little research of my own and found out how much a typical flight would cost you to four of the cheapest and four of the most expensive destinations. I’ve chosen the cheapest option in each case. I’ve then added this onto the costs above.

The flights below depart on Saturday 11 June and return on Monday 20 June. Obviously prices will vary depending when you fly and which airline you choose. And of course, if you’re travelling with a budget airline, there are likely to be additional costs for luggage, checking in, and so on – which I haven’t included here as this will vary from person to person.

The four cheapest destinations

The four most expensive destinations

*Includes stop over.

As you can see, when you take the flight into consideration, it’s Spain that comes out as the cheapest destination overall. And it’s Bulgaria that takes second place. Meanwhile, Australia is still the most expensive destination overall, with New Zealand being the second most expensive.

Of course, as I have already said, your total costs will vary depending on when and where you’re flying from and to, and which airline you choose. But hopefully this gives you some indication of which areas to avoid if you’re on a strict budget!

Predictions for 2011

The Post Office is also predicting that Brazil, Mexico, Bali and Latvia will be successful holiday destinations this year after their currencies topped the Post Office chart of Fastest Growing Currencies in 2010.

It predicts 2011 could be the year for Latin America, following large increases in sales of the Brazilian real and Mexican new peso last year. The recent introduction of direct flights to Cancun and Costa Rica has also boosted demand to these areas which is likely to continue in 2011.

Cut your costs

Finally, don't forget there are several other things you can do to keep the costs of your holiday to a minimum – from being as flexible as possible about when you travel, to being a little creative about your accommodation options. You can find out more about this in Grab an ultra cheap holiday, and don’t forget to also check out our how to guide: Have a cheap holiday.

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