Algarve named cheapest European holiday destination for Brits – Portugal Resident
The Algarve has once again been named the cheapest European beach destination for British families, topping a new annual survey that compares the cost of everyday holiday spending across the continent’s most popular seaside resorts.
According to the Post Office Travel Money Family Holiday Report 2026, produced in partnership with TUI, the Algarve offers the best overall value for money among 22 European destinations, with a basket of common holiday purchases costing an average of £139.65 (over €163).
The report, now in its 18th year, compares the cost of meals, drinks, snacks and other day-to-day holiday expenses rather than flights or accommodation, giving families a clearer picture of how much they are likely to spend once they arrive.
The Algarve climbed back to the top of the rankings after finishing third in last year’s report, overtaking Sunny Beach in Bulgaria (£142.16) and Lanzarote (£147.42) as prices increased in several rival destinations.
Strong value for families
Researchers highlighted the Algarve’s combination of affordable prices and family-friendly attractions as key reasons for its success.
“The Algarve is a great choice if you want an easy family beach holiday with plenty nearby. Albufeira is one of its busiest family spots. It has wide sandy beaches, calm water, family-friendly places to eat and lots of places to stay,” says the report.
It adds: “Away from the beach, you can take a boat trip from the marina, visit nearby water parks or spend a day at Zoomarine for sea life, shows and water fun. The Algarve also offers strong value. It tops this year’s Family Holiday Report and ranks highly in the Children’s Beach Barometer.”
Spain dominates the top 10
While the Algarve claimed first place, Spain accounted for six of the top 10 destinations featured in the report, reflecting the continuing popularity of Western Mediterranean holidays among UK families.
The top 10 destinations are:
- Algarve, Portugal – £139.65
- Sunny Beach, Bulgaria – £142.16
- Lanzarote, Canary Islands – £147.42
- Menorca, Balearic Islands – £151.28
- Costa Brava, Spain – £155.02
- Tenerife, Canary Islands – £158.31
- Marmaris, Turkey – £158.33
- Costa del Sol, Spain – £163.17
- Costa Blanca, Spain – £173.41
- Paphos, Cyprus – £177.18
At the opposite end of the rankings, Sorrento in Italy was named Europe’s most expensive family beach destination, followed by Funchal. According to the report, the basket of everyday holiday purchases costs between €140 and €150 more in Madeira’s capital than in the Algarve.
The Family Holiday Report compares spending costs at European beach resorts rather than package holiday prices, helping travellers estimate the cost of eating out, refreshments and family activities during their stay.
