Holidays are set to get cheaper for British holidaymakers this summer as prices plummet at popular resorts across Europe.
Despite the falling value of the pound, European resorts are desperately trying to entice British holidaymakers back in the wake of the Eurozone crisis.
With prices down by up to 20 per cent in Spanish holiday hotspots and 15 per cent in the Algarve in Portugal, they have topped the list as the cheapest holiday destinations this season according to the Post Office Holiday Costs Barometer.
Top spot, lowest price: Albufeira in the Algarve (pictured) is the cheapest of 20 holiday destinations as resort prices plummet across many European hotspots
Measuring the cost of ten typical holiday items – including coffee, beer, cola, wine, mineral water, suncream, cigarettes and a three-course meal for two – the barometer found that Albufeira in the Algarve, Portugal was the cheapest of 20 holiday destinations because of its meal and drinks, closely followed by Costa del Sol and Costa Blanca in Spain.
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The cost of the ten items is now £46.34 in the Algarve, £46.50 on the Costa del Sol and £47.14 on the Costa Blanca.
Andrew Brown of Post Office Travel Money said: ‘The pound may be worth less in Europe than a year ago but fierce competition means that lower prices in several of the resorts we surveyed can easily offset the falling value of sterling.
Stretching the holiday budget further: Costa del Sol (pictued) and Costa Blanca in Spain were also among the cheapest holiday spots according to the Post Office Holiday Costs Barometer
‘Taking some time to check out resort costs and add them to package prices to find the best overall deal will pay dividends this summer.
'Be prepared to swap destination or switch to a cheaper resort within the same country.’
Typical items: The Post Office Holiday Costs Barometer compared the cost of ten holiday items including beer, suncream and a meal for two
Prices also fell by 5.2 per cent in the Croatian coastal city of Split while the Egyptian resort of Sharm el Sheikh fell by more than 17 per cent in the last year, making it 39 per cent cheaper than Dubai.
In America, even though sterling is 4.1 per cent weaker than last year against the dollar, holidaymakers heading to Orlando, Florida will find prices much lower in the theme park capital. The ten typical holiday purchases surveyed now cost 21.2 per cent less than in 2012 (£58.16).
Back in Britain, Blackpool made 11th place with items costing £65.96 and Bournemouth was 14th place at £78.01. Bargain hunters staying in the UK this year will find the North Country favourite is 15 per cent cheaper than the south coast resort.
Tuscany and Sorrento continued to be the most expensive European resorts surveyed – more than twice the price of the four best value destinations at £94.92 and £101.79 respectively.
Break the budget: Tuscany (pictured) and Sorrento in Italy remained the most expensive resorts costing more than twice the price of the four best value destinations
Mr Brown said: ‘With the continuing volatility of sterling, holidaymakers should budget carefully and take enough spending money to cover all the costs they are likely to incur while abroad.
‘Running out of cash and having to use an overseas ATM or pay on a card that incurs extra charges could pack an unpleasant punch when the bank or credit card statement arrives.
'Allow time to buy foreign currency before leaving home because changing money at the airport means losing out by getting a poor rate.’