The choice of holiday destination increasingly depends on the cost of daily expenses, in addition to beaches and landscapes. A new study shows in which European destinations tourists get the best value for money on vacation.
The Algarve, in southern Portugal, is the most advantageous European destination for family holidays in 2026, according to a study comparing the usual costs incurred by tourists in resorts across the continent.
The Portuguese region has climbed to the top spot after ranking third last year, surpassing destinations long considered among the most affordable, such as Sunny Beach in Bulgaria or Marmaris in Turkey.
The ranking is included in the Family Holiday Report 2026, conducted by Post Office Travel Money in collaboration with TUI and presented by the publication The Times. The study analyzed prices for ten products and services frequently purchased by tourists in 22 European destinations, excluding transportation and accommodation costs.
What the study compared
The analyzed basket includes a coffee, a beer, a glass of wine, a bottle of water, a soft drink, sunscreen, insect repellent, pizza for children, a lunch for two adults, and a family dinner including drinks.
In the Algarve, the analyzed basket of products and services costs approximately 164 euros. A coffee can be bought for around 1.50 euros, while a lunch for two adults costs approximately 24.60 euros.
Bulgaria and Spain dominate the ranking
In second place is Sunny Beach on the Bulgarian Black Sea coast, where the analyzed basket costs approximately 166 euros. The resort also offers the cheapest family dinner among all destinations included in the study.
The third place goes to Costa Teguise in Lanzarote, followed by Menorca and Costa Brava. In total, six destinations in Spain are among the top ten positions, indicating that the western Mediterranean continues to offer a good price-quality ratio.
The top 10 is completed by Tenerife, Marmaris, Costa del Sol, Costa Blanca, and Paphos (Cyprus).
At the other end: Italy is the most expensive
The most costly destination among those analyzed is Sorrento in Italy, where the same basket of products and services costs nearly 314 euros, almost double compared to the Algarve. The difference between the cheapest and most expensive destination in the ranking reaches approximately 92%.
The report also shows that in some destinations, prices have increased significantly compared to last year. Marmaris and Paphos have experienced price hikes of over 22%, while in Funchal (Madeira), costs have risen by over 36%, mainly due to higher food prices.
Laura Plunkett, head of Post Office Travel Money, says that the differences between resorts are significant enough for tourists to compare costs before booking their vacation. She appreciates that Portugal and Spain offer the best value for money this year, while resorts on the Bulgarian Black Sea coast remain a very competitive option for families.
G.P.