LONDON, 18 March 2025: The UK’s Annual Post Office Holiday Money Report names the best holiday hotspots for bargain hunters, claiming that a relatively strong sterling currency is a pivotal factor when choosing destinations.
This has powered Portugal, and specifically the country’s Algarve region, to the top of the 19th Holiday Money Report chart as the value-for-money winner ahead of 47 destinations covered.
The report reveals a strong demand for holidays abroad: Three in five Britons plan trips, and 44% have booked Portugal’s Algarve, which tops the chart of 47 destinations for the first time in nine years.
Cape Town and Tokyo claim the runner-up spots in the biggest-ever cost comparison survey. The survey shows prices are down in half of the resorts and cities surveyed last year.
Holidaymakers who have not decided on their destination will benefit from lower prices in many of the world’s most popular resorts and cities. The report’s Exchange Rate Monitor reveals that 29 of the Post Office’s 30 bestselling currencies have weakened against sterling over the past two years.
In its barometer of costs in 47 destinations worldwide, Post Office Travel Money found that prices for eight items were down in half of the resorts and cities compared with a year ago.
The study compared the following items: A three-course meal for two with wine, a cup of coffee, a bottle of local beer, a can of cola, a glass of wine, a bottle of still water, suncream, and insect repellent.
The biggest price fall was in the Dominican Republic, the only Caribbean Island of seven surveyed to make the top 20 in this year’s barometer in 19th place. At UKP93.09, prices in Punta Cana have plummeted by over 26%.
Prices fell in the Algarve, Portugal’s most popular resort area. It took the top spot this year, up from fifth place a year ago, with a barometer cost of UKP58.95, 1.6% less than in 2024.
Thanks to the continuing low price of meals and drinks, the cost of a three-course meal for two with wine was UKP40.33 — the lowest recorded across the 47 destinations surveyed and one-third the cost in New York (UKP128.27). Sterling’s strength against the Euro was up 1.8% year-on-year and 6.3% compared with March 2023.
Long-haul destinations have outperformed European ones, claiming five of the top six places in this year’s barometer. Cape Town in South Africa has retained the runner-up position with a barometer cost of UKP59.84, albeit 11% higher than a year ago. In third place, Japan’s capital city, Tokyo, has moved up one place, but prices have risen by 7.4% to UKP63.34. Bali (UKP66.88) has moved from eighth to fourth place, but prices are 5% higher year-on-year.
Of the new entrants to the top 10 chart this year, Delhi rises to fifth place from 13th a year ago on the back of a 10.7% price drop to UKP69.52. Among the other new entrants to the Post Office, the top 10 are Prague and the Czech Republic (8th, UKP75.92), which saw a significant price fall of over 20%.
Phuket took the 9th slot with UKP76.10). Prices in the Thailand resort are down by 2.7%. Spain’s Costa del Sol (10th, UKP76.51) saw costs drop 6.4%.
Sunny Beach, Bulgaria (6th, UKP71.46) and Hoi An, Vietnam (7th, UKP73.23) complete the top 10.
However, a substantial price rise of 41.3% saw Hoi An drop from the top spot last year.
New York is the most expensive of the 47 destinations surveyed, with a barometer total of UKP167.85 (+15.6% year-on-year).
Top 10 for value and price breakdown by country and resort area
Post Office Travel Money, the UK’s largest provider of foreign currency, says that currency sales are a valuable indicator of where Britons choose to visit. Over the past year, these indicate a growing travel demand further afield to long-haul destinations — mainly in Asia and South America. Notable among these are the sales gains made by the Japanese yen, Thai baht, and Indonesian rupiah, all three of which boast destinations (Tokyo, Phuket, and Bali) in the Worldwide Holiday Costs Barometer’s best value top 10.
Another consideration could be the value of sterling. Although it has proved volatile in the wake of the US presidential election, sterling remains strong against many currencies. Over three-quarters of Post Office’s top 30 currencies — including the Euro and most other European currencies — have weakened since last March.
A full breakdown of findings from the Post Office Travel Money Holiday Money Report and the source material used in it can be found here www.postoffice.co.uk/holidaymoneyreport.
