Algarve named cheapest family holiday destination in Europe for 2026

The Post Office Travel Money’s annual Family Holiday Costs Barometer examined the prices of ten everyday tourist items in 22 European resorts. Portugal’s Algarve topped the ranking, with the basket of items costing about £139‑£140, making it the most affordable spot for UK families. Sunny Beach in Bulgaria placed second (≈£142) and the Spanish island of Lanzarote third (≈£147), followed by Menorca and the Costa Brava. Prices varied by up to 92 % across the list; the most expensive resort was Sorrento, Italy, where the same basket cost almost twice as much at £268. The study excluded flights and accommodation and noted that a stronger pound helped families mitigate local price rises. Laura Plunkett, head of Post Office Travel Money, said, “We found big variations in costs between the European resorts surveyed, which means it is more important than ever to do some research before heading off on your holiday.”