Not Spain - cheapest European family holiday spot has sandy beaches and £2.62 beer

The school summer holidays have officially started, with many families across the country jetting off for a well-needed break. For those who are looking to be conservative with their spending on holiday, Post Office has revealed the top 10 holiday destinations where money goes the furthest.

In its 18th annual Family Holiday report, the Post Office revealed that the cheapest European beach spot for families isn't in Spain, France or Italy. Created in partnership with TUI, the report looks at the cost of meals, drinks and everyday holiday items in 22 resorts across Europe, with six destinations making an appearance for the first time. The cheapest, however, can be found in Portugal.

The report tallies up the total cost of 10 different tourist items, including lunch and evening meals for the whole family, a range of drinks such as a cup off coffee and beer, suncream and insect repellent.

The Algarve in Portugal claimed the top spot this year, after coming third back in 2025, with a total cost of £139.65. In fact, prices there have fallen slightly, while prices in several other places have increased since the last report in July 2025.

Making up the top three cheapest destinations for 2026 are Sunny Beach, Bulgaria at £142.16, and Lanzarote, Canary Islands at £147.42. Spain has the most places in the top 10, with six destinations on the list.

The Post Office described the Algarve as a "great choice" for a simple family beach holiday, offering plenty of attractions, beaches and eateries that all the family can enjoy. Popular resort destinations in the Algarve include Albufeira, Vilamoura, and Lagos.

The Post Office wrote: "Away from the beach, you can take a boat trip from the marina, visit nearby water parks or spend a day at Zoomarine for sea life, shows and water fun. The Algarve also offers strong value.