The strength of the euro may put you off holidaying in the Eurozone at the moment, but where should you go if you're looking for a great value trip away?
If you've recently gone on holiday to Europe, you've probably felt the squeeze of the strengthening euro.
In just twelve months, the pound has dropped from being worth _1.40 for every £1 to just _1.20. That's nearly a 17% fall in the value of sterling.
However, it's not just the euro that is growing from strength to strength. Those contemplating a holiday to city favourite Prague are also in for a shock.
Compared to this time last year, the Czech koruna has increased in value by nearly 32% against the pound, making your trip potentially much more expensive.
In fact, strong eastern European economies have helped many countries located in this region make gains against both the euro and sterling.
For example, the Polish zloty is up by 29% this year alone against the pound. Whereas last year £1 would have got you 5.20zl, according to the Post Office, today it would only get you 4.03zl.
So, with the eurozone becoming an increasingly expensive holiday destination, if you're looking to book a holiday that is both enjoyable and cheap, what's the alternative?
Flying Stateside
The most obvious alternative to a European holiday is to hop across the pond to the United States. While the euro has gone from strength to strength over the last year, the dollar has gone on a downward slide amid fears of a looming recession.
In March 2006, £1 would have bought $1.66. Today, you could get $1.89 -- that's an extra $23 for every £100 you spend in the States.
In addition, destinations such as Dubai, Hong Kong and Jamaica have also been flagged up as bargain destinations of the moment.
And don't forget Goa in India which, although not mentioned by the Post Office, is another relatively cheap and exotic destination if you're thinking of venturing abroad.
So, if you're prepared to fly long haul, then the extra money you'd fork out for the flight could potentially be offset against the savings you'd make on purchases while away.
However, the true cost of your holiday depends on what you buy, as well as how much money you have to buy it with.
Bartering In Bangkok
A good example of a bargain holiday destination is Thailand. Although the Thai baht has actually risen against sterling over the past year, climbing just over 10% over 12 months, it is still the Post Office's top destination when it comes to cheap holidays:
Items | Thailand | Egypt | Spain | France | Australia |
|---|---|---|---|---|---|
Cup of coffee Bar/café | £0.88 | £0.79 | £1.01 | £1.68 | £1.50 |
Bottle of Heineken Bar/café | £1.59 | £1.05 | £2.10 | £3.36 | £2.49 |
Bottle of mineral water Supermarket | £0.44 | £0.73 | £1.26 | £0.76 | £1.99 |
Postcard & stamp for UK Tourist shop | £0.35 | £0.31 | £0.93 | £1.35 | £1.25 |
3 course evening meal for 2 (including bottle of house wine) in a local restaurant | £17.64 | £36.69 | £33.64 | £37.85 | £59.81 |
Total Costs | £28.58 | £46.96 | £59.24 | £68.97 | £88.97 |
As this table shows, a three course meal would set you back just £17.64 in Thailand, whereas the same meal in Australia costs a mighty £59.81.
Despite the strengthening baht, essentials in Thailand such as food and drink weighed up at under a third of the cost of the same items in Australia, and was well under the average price of the shopping basket across the eurozone.
In fact, the Post Office's survey of 16 different destinations across ten commodities (ranging from the price of a cup of coffee to the average price of a three course meal in a local restaurant) placed Thailand as the cheapest holiday destination, while Australia was flagged up as the most expensive.
Flying Further Afield
Long haul destinations Egypt and South Africa came second and third cheapest in the poll, with some quite substantial price differences. A postcard and stamp costs only £0.31 in Egypt, while ironically you'd have to fork out £1.35 to send one from our neighbour France.
Similarly, a cup of coffee costs just £0.69 in South Africa, while that same cup of would set you back £2.94 in Greece. The costs do add up.
According to the Post Office, countries which flank the Eurozone such as Turkey, Bulgaria and Croatia also provide good value, without requiring you to go too far afield.
But if you're keen to stick to a European destination, or your budget simply doesn't stretch that far, Spain is top of the Euro picks, with goods costing up to 15% less for tourist staples than the most expensive European destinations of France, Portugal and Italy.
However, if you're going to Spain, be prepared to use public transport. Car rental was judged to be most expensive by the Post Office among the 16 destinations, costing £58.87 for one day's rental compared to just £16.82 in Italy.
Domestic Destinations
Finally, with all this talk about going abroad, why not stay in Britain? It's the green option and you can still have a good time - honest!
There are some great breaks to be had in Blighty, and if you know where to look, you can bag yourself a bargain too.
Lastminute.com often have deals on domestic breaks, as well as cheap tickets to venues such as Alton Towers and Chessington.
In addition, if you're a Barclaycard holder and are stuck as to what to do with the kids, why not check out the deals they have in conjunction with Centreparcs, with up to 25% off selected breaks.
Finally, don't forget to check out this short guide to tipping while on holiday. With all this in mind, hopefully you should be very well equipped when choosing your next holiday destination!