Best Value Destinations Revealed

Holiday Food. Picture Credit: Canva

If you’re dreaming of sun, scenery, and delicious dinners without breaking the bank, 2025 might be your year. The latest Post Office Travel Money Holiday Money Report, now in its 19th year, has revealed the world’s best value destinations, and for the first time in nine years, the Algarve in Portugal has claimed the top spot.
 

Why the Algarve is Back on Top

Long a favourite with British travellers, the Algarve has always offered sunshine, sandy beaches, and welcoming hospitality. But this year, it’s the prices that have stolen the spotlight.

The region’s barometer cost, calculated from everyday holiday essentials like meals, drinks, and snacks, has dropped nearly 2% year-on-year to £58.95. A three-course meal for two with wine costs just £40.33, the lowest recorded across the 47 destinations surveyed.
The strong pound against the euro (up 1.8% compared with last year and 6.3% since March 2023) has also made Portugal even more tempting for UK holidaymakers.

Laura Plunkett, Head of Travel Money at the Post Office, says:
“The Algarve has always been good value, but this year its prices have barely budged while its closest competitors have gone up. If you’re looking to keep your holiday spending in check without sacrificing the experience, it’s a brilliant choice.”
 

The Rest of the Top 10

The Algarve isn’t alone in offering exceptional value. Long-haul favourites dominate this year’s list, with five of the top six destinations outside Europe.
 

2. Cape Town, South Africa (£59.84) - Retaining its runner-up spot, Cape Town’s breathtaking scenery, wine country, and vibrant food scene still come in under £60, despite an 11% rise in costs since last year. 
3. Tokyo, Japan (£63.34) - Moving up a place, Tokyo offers cultural wonders, world-class food, and surprising affordability—prices have risen, but it’s still one of the best value city breaks in Asia.
4. Bali, Indonesia (£66.88) - From lush rice terraces to golden beaches, Bali’s allure has pushed it up from eighth place last year, despite prices climbing 5%.
5. Delhi, India (£69.52) - A new entry to the top 10, Delhi’s prices have dropped by over 10%, offering a vibrant mix of history, culture, and street food at unbeatable rates.
6. Sunny Beach, Bulgaria (£71.46) - A long-time European bargain, Sunny Beach delivers budget-friendly beach holidays without cutting corners on fun. 
7. Hoi An, Vietnam (£73.23) - Known for lantern-lit streets and tailor-made clothing, Hoi An combines charm and low prices in one irresistible package.
8. Prague, Czech Republic (£75.92) - Prices here have fallen by over 20%, making this storybook city one of Europe’s best-value short breaks.
9. Phuket, Thailand (£76.10) - Sun, sea, and street food, now at slightly lower prices than last year, secure Phuket’s place in the top 10.
10. Costa del Sol, Spain (£76.51) - With year-round sunshine and new price drops of 6.4%, the Costa del Sol continues to deliver great value for travellers.

 

Where Not to Go for Value

If budget is your top priority, you might want to skip New York, which tops the “most expensive” list at £167.85, up more than 15% from last year. Mahé in the Seychelles and Hawaii aren’t far behind, while Nice takes the title of priciest European break after a 27% price surge to £153.03.
 

A Boost for British Travellers

Overall, British holidaymakers have reason to celebrate, sterling has strengthened against almost every major holiday currency since March 2023, meaning more spending power abroad. The biggest gain has been against the Mexican peso, giving travellers up to £87 more for every £500 exchanged compared with early 2024.

Bottom line? Whether you fancy sipping vinho verde on a Portuguese terrace, watching the sun set over Table Mountain, or wandering Tokyo’s neon streets, there are still plenty of destinations where your money stretches further than you might think.

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