The cheapest holiday destinations in 2015

A strong pound makes Prague the best value holiday hotspot for UK travelers this year.

The European city of Prague is the cheapest destination for UK holidaymakers this year, according to the ninth annual Post Office Holiday Money Report.

The Post Office Travel Money survey looks at currency trends over the past 12 months and makes predictions for the year ahead.

To find the best and worst value places to visit for UK holidaymakers, the Post Office analyses the cost of eight typical holiday purchases across 46 destinations and resorts. These include:

• A cup of coffee
• A bottle of local beer/lager
• A bottle/can of Coca-Cola/Pepsi
• A glass of wine
• A 1.5l bottle of mineral water
• Suncream (200ml SPF 15)
• A pack of 20 Marlboro Lights cigarettes
• Three-course evening meal for two, with a bottle of house wine

The typical holiday basket for a UK holidaymaker cost the least in the Czech capital at £35.29.

In contrast the most expensive destination for UK tourists was China Town, Singapore where the cost of the eight holiday staples came to £149.65.

Post Office Travel Money says that although sterling has fallen back from the heights it reached in 2014, it remains stronger than 12 months ago against half of its top 40 currencies.

The biggest sterling gains in the last year were found against the Russian ruble (+72.2%), Norwegian krone (+ 15.1%), Swedish krona (+13%), Hungarian forint (+12.7%), Polish zloty (+9%), Czech koruna (+6.7%), Croatian kuna (+6.6%), Japanese yen (+6.3%), Mexican peso (6.1%), Brazilian real (+6%), Bulgarian lev (5.9%) and the euro (+5.7%).

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The 10 cheapest destinations

Here are the top ten cheapest destinations according to the Post Office Travel Money survey.

Source: Post Office Travel Money

Data relates to exchange rates on 6th January 2015

As you can see eight out of the 10 cheapest hotspots are located in Europe.

Lower local prices combined with the continued strength of the pound against the euro and other European currencies has helped make these destinations more affordable for UK holidaymakers.

The cost of eight holiday staples including meals and drinks has fallen in two-thirds of the European countries in the top ten, most dramatically by over 19% in Greek resort Crete (£41.74) making it 7th cheapest in the survey.

The pound is stronger against 12 out of 13 European currencies. The exception is the Turkish lira, which is 4% stonger than a year ago.

Portugal’s Algarve has taken the runner-up spot for the second year running and remains the best value beach resort. Prices here are now a third lower than five years ago (£36.04). However, Bulgaria’s Sunny Beach (£36.14) and Spain’s Costa del Sol (£36.80) are also good value beach destinations for UK tourists. 

Cyprus makes its first ever top 10 appearance on the back of a 6% fall in local prices in Paphos securing 9th best value destination.

Last year’s best value destination, Kuta in Bali, has dropped to fifth place after a 21% rise in the cost of a holiday basket (£38.09) and the strength of the pound against European currencies.

However, Bali remains the best value long haul destination for UK travellers, followed by Cape Town in South Africa, the only other non-European destination to make the top 10.

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The 10 most expensive destinations

Here are the 10 most expensive destinations according to the Post Office Travel Money report.

Source: Post Office Travel Money

Data relates to exchange rates on 6th January 2015

No European resorts ended up in the ten most expensive destinations. However, Sorrento in Italy, which ranked 31st on the holiday costs barometer, remains the priciest European destination (£80.50), costing over twice as much as the likes of Prague, Algarve, Sunny Beach, Costa del Sol and Kuta.

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Bagging a bargain trip

It’s a good idea to keep an eye on and compare exchange rates for a range of destination before coming to a final decision about where to go in 2015.

To get the most bang for your buck make sure you shop around and avoid the pitfalls by taking a look at our article How to avoid being ripped off on your travel money.

For advice on getting the best deal on flights and accommodation read How to get a cheap flight and How to get a bargain hotel room.

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The best and worst hotels in the UK

The best debit cards to use on your travels

The best credit cards to use on your travels

The best prepaid cards for spending abroad