Travel Insurance

Cheapest family holidays abroad revealed - including Greece and Spain hotspots where prices have DROPPED

When schools break up for the holidays scores of families will be heading abroad, but how expensive is your destination? New research has revealed the cheapest places for a holiday.

And for those who haven't booked yet, the analysis could provide inspiration for a cheap last minute break.

Especially because nearly eight in 10 families went over budget on their last trip — by an average of 42% — due to the rising cost of food, drinks, and treats.

The Post Office's Family Holiday Report 2025, created with travel operator TUI, found that on average, parents spent £202 on children's beach extras alone, highlighting the significant impact hidden daily costs now have on a typical family getaway.

Read more: Want a cheap city break? Try Vilnius - top 5 cheapest (and most expensive) destinations revealed

The Post Office research focuses on these and other common holiday costs to rank 16 popular European resorts TUI offers packages to. The items include lunch and evening meals, snacks, drinks, suncream and insect repellent.

In a reversal of previous trends, Marmaris in Türkiye has reclaimed the top spot as the cheapest family destination for 2026, despite prices there rising by over 10% since the previous year.

Sunny Beach in Bulgaria has dropped to second place following a sharp 17.2% increase in local costs.

Meanwhile, Crete, Greece has seen the most significant improvement in value, with prices falling by 7.8% year-on-year to reach seventh place.

Lanzarote also remains a strong value choice, with costs dropping by 2.1% since July 2024 based on the 2025 Family Holiday Costs Barometer.

Read more: Spain tourist tax - how much is tourist tax for Majorca, Benidorm, Barcelona and more

While a cup of coffee remains competitively priced, a bottle of local beer and a glass of wine in Ibiza now cost an average of £4.54 each.

As the most expensive destination of the 16 analysed for 2026, a three-course family meal in Ibiza - including wine and soft drinks - has risen to £138.80.

This is more than double the cost of a similar meal in Sunny Beach, Bulgaria, where families pay just £62.45, and in Marmaris where the same will cost £67.67.

Across the entire 'holiday basket' of essentials, costs in Ibiza are almost twice as high as those at the Turkish resort according to the latest Post Office Travel Money data.

Top 10 Best-Value Family DestinationsTotal Cost% Rise/Fall since July 2024
Marmaris, Türkiye£128.99+10.3%
Sunny Beach, Bulgaria£129.47+17.2%
Algarve, Portugal£143.56+15.5%
Paphos, Cyprus£144.44-1.2%
Lanzarote, Canary Islands£151.61-2.1%
Costa del Sol, Spain£157.05+14.0%
Crete, Greece£166.08-7.8%
Kos, Greece£170.41+13.4%
Rhodes, Greece£172.03+9.6%
Puglia, Italy£186.62+7.3%

According to NimbleFins research into the best week to fly, the final week of the school summer holidays remains the most affordable window for a getaway. The research also found the cheapest day to fly out of the UK in 2026 is a Friday - a huge shift from pre-pandemic patterns when more people were returning home from working abroad on Fridays.

For travellers wanting to take cash with them, the Post Office suggested they can make the most of their money by keeping an eye on the exchange rate in the months leading up to their trip to spot when prices are coming down.

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The Post Office said: "Travel insurance is hugely important if you’re going away. You should take out insurance as soon as you have made your travel plans and parted with any money. Things can happen before or during a trip.

"Travel insurance will typically provide cover for cancellation, lost or stolen personal possessions, including money, as well as emergency medical and repatriation cover."

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Helen Barnett

Helen is a journalist, editor and copywriter with 15 years' experience writing across print and digital publications. She previously edited the Daily Express website and has won awards as a reporter. Read more here.

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