Algarve holiday is best value for 2015

For the best value for money holidays, Brits have been advised to pick Prague, the Algarve or Spain’s Costa del Sol.

The Post Office Holiday Costs 2015 pointed to European spots for best holiday value. It noted also that Auckland, Muscat and Dubai were the most expensive locations.

Cheapest destinations also included Sunny Beach in Bulgaria, Kuta in Bali, Budapest, Crete and Cape Town.

The rise in the value of sterling against the euro has helped, reaching values not seen for six years.

Falling oil prices could result in cheaper air fares as well as reducing energy bills and petrol prices.

Reform of the Air Passenger Duty tax will also help families save travel costs. Children aged under 12, flying economy class from May 1, will not have to pay the tax and it will be scrapped for children under 16 from 2016.

The study found a cup of coffee in a bar or café will cost £1.06 in Prague, or 57p in the Algarve. In Dubai it will cost £4.67, or £3.18 in Muscat.

A three-course evening meal for two, which includes a bottle of wine, will cost £36.80 in the Costa del Sol, but £90.54 in Auckland.

Andrew Brown, of Post Office Travel Money, said: “There is currently little difference in resort costs between the Algarve, Sunny Beach and the Costa del Sol, which are cheapest in Europe, but keep an eye on Crete and Cyprus where falls in the cost of eating out make these islands better value than ever before.”

The cheapest destinations