Families travelling to the eurozone and other European hotspots at the end of the school term will find that the powerful pound will make it cheaper in almost every destination surveyed for the annual Post Office Travel Money Family Holiday Report.
Sterling’s increased buying power has been compounded by local price-cuts in three-quarters of resorts, making it up to 31% cheaper for families compared to a year ago.
Family meals remain cheapest in the Costa del Sol and in Sunny Beach, Bulgaria at less than £33 for three-courses plus a bottle of wine and kids’ drinks. This has again made the two resorts best value of 14 surveyed for the holiday report basket of 15 items. However, SunnyBeach (£65.97) has extended its lead on the Costa del Sol (£79.69) with an 18.1% year-on-year fall in prices, thanks partly to the lower resort costs.
The biggest falls have come where competition between resort restaurants has led to hefty cuts in meal costs. Even though it remains the most expensive resort to eat out, meal costs have plunged 39% year-on-year in Sorrento. This enabled the Italian resort to surrender its position as the highest-priced destination to Nice. At £142.54 prices in Sorrento are down 26%, compared with 17% in Nice (£147.63).
Meal prices have fallen even further – by more than 46% - in the Croatian resort of Porec and this contributed to a 31% drop in its barometer total to £105.25. By contrast, meal prices have mushroomed in Mallorca, not only making this one of the priciest places for families to eat but also increasing its barometer basket to almost £130. This represents a rise of almost 26% compared with 12 months ago.
Although visitors will have nearly 20% extra cash in their pockets because of sterling’s surge against the Turkish lira, local prices in Marmaris have risen more than 7%, wiping out some of the benefit. As a result, the barometer basket for Marmaris has dropped by just over 10% to £92.85 and visitors will pay roughly the same for meals as they did a year ago.
Elsewhere in the Eastern Med, a 24% fall in meal prices will make it much cheaper for visitors to Crete. At £87.15, its barometer total has plunged by around 27% since last year, making Crete almost 15% cheaper than Corfu (£101.98). As a result, Crete has risen to third place in the barometer table above the Algarve (£98.33) and Agia Napa in Cyprus (£98.55) as well as Marmaris.
Resort costs can be compared at www.postoffice.co.uk/familyholidays2014