British holidaymakers are spending much more time in carefully planning their holiday destinations to make them as economic as possible, according to newly published figures.
Falls in the value of sterling against other currencies and steep rises in resort prices mean the cost of typical tourist items are higher in four out of five popular resorts and cities compared with a year ago, according to Post Office Travel Money.
The annual Holiday Money Report, which surveyed 40 destinations, found that Brits are paying more for meals, snacks, drinks, sun cream and insect repellent in locations such as the Costa del Sol in Spain; Marmaris, Turkey; Orlando, USA; and Phuket in Thailand.
However, it's not all bad news — prices have fallen year-on-year in six of the 10 cheapest destinations. It means that people planning their holidays are now spending more time on researching the cost of eating, drinking and things like insect repellents and sun creams as they are on times, destinations, flights and hotel transfers.
Cape Town in South Africa has the lowest prices for UK visitors, driven by the rand’s near-16 per cent fall against sterling in recent months — and competitive pricing in bars and restaurants. A three-course evening meal for two, including a bottle of house wine, typically costs just £35.80 in the coastal city. That's a whopping £100 cheaper than a similar dining experience in Reykjavik, Iceland.
The Algarve in Portugal is the cheapest of nine eurozone destinations surveyed, despite prices rising by a third year-on-year. And the Red Sea resort of Sharm el-Sheikh is also in the best value top 10 on the back of a fall in the Egyptian pound’s value.
Even with a 19.2 per cent drop in the value of the Turkish lira, inflation and a 55 per cent rise in the minimum wage at the nation’s bars and restaurants mean prices for UK visitors to Marmaris have more than doubled since last year. Ed Dutton, portfolio director for financial services at the Post Office, said: “Despite the volatility of sterling, it is still possible to bag a bargain with careful planning.
“Check exchange rate movements and the cost of holiday essentials before booking to see where you might get more holiday cash for your pounds — but be aware that sterling gains can be cancelled out by big resort price rises, as the increase in Turkey proves.
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“It will pay to be flexible when deciding on a holiday destination. The Egyptian pound and South African rand have been losing ground against sterling recently, while Latin American currencies like the Mexican peso and Costa Rican colón have been surging in value.”
The report was produced in partnership with online travel agent Travel Republic, whose managing director Antonio Fellino said: “Britons are considering their options more carefully and really looking hard at how they get great value from the package they book and the destination they’re travelling to. “It’s not surprising that places like Egypt and Turkey are seeing a significant increase in popularity this year.”
The cheapest places for eight commonly bought items
| Filter coffee | Algarve, Portugal | £0.81 |
| Local beer | Cape Town, South Africa |
£1.62 |
Coca-Cola or Pepsi |
Sharm el-Sheikh, Egypt |
£0.93 |
Glass of wine |
Algarve, Portugal |
£1.81 |
1.5L mineral water |
Marmaris, Turkey |
£0.15 |
Suncream, 200ml |
Tokyo, Japan |
£4.34 |
Insect repellent, 50ml |
Kuta, Bali |
£0.64 |
| 3-course meal with wine | Cape Town, South Africa | £35.80 |
The costliest places for eight commonly bought items
| Filter coffee | Mahé, Seychelles |
£4.55 |
| Local beer | Jumeirah Beach, Dubai |
£8.99 |
Coca-Cola or Pepsi |
Mahe, Seychelles |
£3.85 |
Glass of wine |
New York, USA |
£11.41 |
1.5L mineral water |
Rodney Bay, St Lucia |
£4.95 |
Suncream, 200ml |
Tamarindo, Costa Rica |
£21.84 |
Insect repellent, 50ml |
Reykjavik, Iceland |
£17.16 |
| 3-course meal with wine | Reykjavik, Iceland |
£135.87 |
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