Spain has been named as the “best value” summer destination by UK holidaymakers despite the continued weakness of the pound against the euro.
According to a Post Office Travel Money’s Holiday Spending Report, 87% of Brits thought mainland Spain was good value – putting the destination just ahead of Greece and Bulgaria, which both scored 85% for value, while Portugal came fourth at 82%.
Despite fears of further Brexit-related falls in the pound’s value against the euro, only 3% of holidaymakers surveyed said they would avoid holidaying in the eurozone because of worries about rising prices.
Dubai came bottom of the table for offering value for money with just 38% saying it was a good-value destination. Other poor performers for value were Scandinavia (44%) and France (58%).
The best-value long-haul destinations were Thailand (82%) followed by Mexico (74%), the US (68%) and the Caribbean (65%).
The report also found that two-thirds of holidaymakers still planned to travel abroad despite Brexit uncertainty hitting the value of the pound in recent weeks.
The number one concern for consumers was the cost of flights (81%) followed by the price of in-resort meals, drinks and other items (77%). Another key motivator was package holiday price discounts (64%) while the pound’s value was an important factor for 55% of holidaymakers.
It also revealed that Brits find it hard to stick to a holiday budget: while the majority (74%) set a budget for their last holiday only 34% managed to stay within this budget.
Those who did overspend on their holidays did so by an average of around 26%, which the Post Office said added up to more than £2 billion in extra spending, based on an average budget of £717 per couple.
Despite this overspending, only 6% of holidaymakers said they planned to increase their budget this year.
Nick Boden, head of Post Office Travel Money, said: “Although our barometer surveys have revealed falling prices in many destinations, it remains uncertain how sterling will perform and this could affect its buying power abroad.
“With the high levels of overspending revealed by this year’s report and the concerns expressed about resort costs, we urge holidaymakers to take the time to set a realistic budget so as not to risk getting caught short.”