Spain is the cheapest holiday destination for 2011

If you're off on holiday soon, check out the cheapest holiday destinations this year...

If you’re anything like me, you’re probably dreaming of sun, sea and sand right now. After all, it’s the time of year when many of us start to think about jetting off for a much-deserved break.

However, let’s not forget that money is a little tight right now, and holidays aren’t exactly cheap. Fortunately, if you’re still hoping to get away this year and you’re trying to keep to a strict budget, the Post Office has just released the results from its latest Holiday Costs Barometer highlighting the cheapest holiday destinations this year.

So let’s take a look.

The cheapest destinations

The Post Office Holiday Costs Barometer looks at the price of ten popular tourist items, including dinner for two, refreshments, insect repellent, and suncream, in 14 destinations across the globe.

According to its calculations, families looking for the cheapest holiday should head to Spain, which has come out as the cheapest holiday resort destination for 2011, after the basket of ten items came to £42.15. This is 15% less than 2010’s top destination, Portugal, which has been pushed from first to third place by Spain and Bulgaria.

Prices in Spain have been slashed in a bid to win back UK holidaymakers after levels dropped on the back of the recession.

Meanwhile, if you’re planning to head to either Greece or Turkey for your holiday, you’re also in luck because prices in these two countries have also taken a plunge.

Following on from a disappointing 2010, Greece has had to cut costs, with bars and restaurants in the top island resort of Corfu having slashed prices by 10%. This has meant Greece is now the fourth cheapest holiday resort destination.

Turkey has taken the fifth spot after prices there fell by 15% - the largest price fall out of all 14 destinations surveyed. Indeed, the price of a three-course evening meal for two in top Turkish resort, Marmaris, has dropped by a massive 23%! A stronger UK pound against the Turkish lira has also influenced this.

Costly breaks

In contrast, Miami in the USA came out as the most expensive resort destination, where a three-course evening meal for two would set you back an average of £65.79 – over £42 more what it would cost you in Spain!

Italy was the second most expensive holiday destination, followed by France. Brighton in the UK also came in the top five most expensive holiday destinations on the back of rising meal costs and increased VAT.

A closer look

The table below shows how much a typical basket of good costs in various popular destinations (this runs from the cheapest to most expensive). The basket includes coffee, beer, cola, water, suncream, postcard and stamp to UK, insect repellent, cigarettes, English tabloid newspaper, and a three-course evening meal for two, including wine.

Exchange rates

Generally-speaking, in Europe, Sterling buys around the same amount of holiday cash as it did a year ago, according to the Post Office survey. However, you’ll get more for your pound in Egypt (up 13.7% on last year), Dubai (up 7.3%) and the USA (up 6.3%).

The table below shows Post Office exchange rate comparisons for holiday currencies between April 2011 and 2010 (based on rates as at 6 April).

Flights

Of course, the one thing missing from this research is the cost of getting to these destinations. And flights aren’t always cheap, so they can soon add significant costs to your holiday.

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.

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Of course, if you’re staying in the UK then your travel costs shouldn’t be too high. But if you’re not, I’ve done some research of my own to investigate how much a typical flight would cost you to three of the cheapest and three of the most expensive destinations. In each case, I’ve picked the cheapest option and added this onto the costs above.

The flights below depart on Saturday 18 June and return on Monday 27 June. Obviously prices will vary depending on when you fly, where you fly from, and which airline you choose. Budget airline flight costs also don’t include additional fees for luggage and checking in, so don’t forget to keep this in mind. Prices are per person.

The three cheapest destinations

The three most expensive destinations

As you can see, when you take the flight into consideration, Spain still comes out cheapest overall and Bulgaria and Portugal remain in second and third place respectively. Meanwhile, the USA is still the most expensive destination overall, but it’s France that comes in second most expensive once the flight has been taken into account.

For further tips on cutting the cost of your holiday, have a read of Seven ways to save money on your Bank Holiday break.

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