Families everywhere have felt the hit of inflation across all areas of life, and summer holidays are no different. But while many European beach holiday destinations have seen prices rise for UK visitors, others still prove to be good value.

Among those best-value sunshine destinations is the Algarve, which came in second place in the annual Post Office Family Holiday Report, beaten only by the Turkish resort of Marmaris and placing ahead of last year's leader, Sunny Beach in Bulgaria.

Even so, both the Bulgarian and Turkish resorts actually saw the highest annual price increases for UK visitors (41% and 33.3%, respectively), along with Funchal on the Portuguese island of Madeira (up 24.1%).

Overall, prices have risen year-on-year in 15 of the 16 beach destinations surveyed by the holiday company TUI, which contributed to the report. Puglia in Italy was the only location where prices dropped, with a 10.3% annual fall. The most expensive destination was Ibiza.

The annual Post Office Family Holiday Report also includes a Beach Barometer, which compares the costs for 12 family holiday essentials, including a family meal, sun cream, insect repellent, and beach gear and accessories.

“Although sterling is at a 2023 high against European currencies, inflation has hit local prices abroad just as it has in the UK,” explains Laura Plunkett of the Post Office.

“This means families should expect to pay more for meals, drinks and other tourist items in most resorts. However, there are still places where bargain hunters will get the most for their money.”

As the second best-value beach destination overall, the Algarve was also the lowest-cost destination for sun cream and a glass of wine. Offering the best of both worlds – affordability and luxury –, it's no surprise that the Algarve attracts more visitors than ever.

Looking to stay a little longer or make the Algarve your home? Chat with us at Algarve Home Sales to find your perfect spot in one of the world's leading destinations.