Resort prices in Spain and the Algarve have tumbled according to a Post Office survey.
Meals and drinks are down by up to 20% in Spain and almost 15% in the Algarve claims this year’s Post Office Holiday Costs Barometer.
The Algarve in Portugal came in as the cheapest destination in the survey looking at the costs of everyday items, closely followed by Costa del Sol and Costa Blanca.
Bulgaria offers the best value in Europe outside the eurozone in fourth place – 19% cheaper than Marmaris in Turkey.
Majorca came in fifth place, reporting a fall in prices of 8.8% since last year.
Barometer prices were uniformly high in Italy with Tuscany and Sorrento over twice the price of the four best value destinations.
Lower prices in Sharm el Sheikh and sterling’s strength against the Egyptian pound makes Egypt the mid haul winner at 39% cheaper than Dubai.
In the USA, even though sterling is weaker against the dollar than last year, prices are up to 21% lower than in 2012.
Andrew Brown of Post Office Travel Money said: "The pound may be worth less in Europe than a year ago but fierce competition means that lower prices in several of the resorts we surveyed can easily offset the falling value of sterling."
