Algarve, Portugal Named Europe’s Cheapest Family Holiday Destination

The 2026 Post Office Travel Money Family Holiday Report, compiled with TUI, identified Portugal’s Algarve region as the most affordable European summer destination for families. The basket of ten typical holiday expenses for a four‑person family totals €163.39, 2.7 % lower than the previous year, making the Algarve the cheapest in the ranking of 22 popular beach spots. Prices that drive the low cost include coffee at €1.49, a beer at €3.07 and a glass of wine at €4.08. The 150‑km coastline, with around 300‑320 sunny days annually, spans from Vila Real de Santo António to Sagres and features well‑known towns such as Faro and Portimão, which are experiencing a tourism boom. The report excludes travel and accommodation costs, focusing solely on on‑site expenses, but highlights the Algarve’s strong value proposition for budget‑conscious travelers.