Holiday forecast looks brighter as prices fall abroad

Holiday forecast looks brighter as prices fall abroad

Sterling looks set to play a pivotal part in choosing holiday destinations this year according to Post Office’s Holiday Money Report, which reveals 2020’s best value holiday hotspots. 

Post Office remains the UK’s number one for travel and our 14th annual Holiday Money Report is designed to generate media coverage and raise customer awareness about our market leading Travel Money, which drives footfall into our branches, and also is great a conversation starter for your customers. 

Compared to last year, 34 out of Post Office’s 40 bestselling currencies are currently weaker against sterling and prices are falling in over three-quarters of resorts and cities worldwide. 

Worldwide Holiday Costs Barometer 

Research for the report shows that the cost of eight tourist staples – a three-course evening meal for two with wine, bottle of beer, glass of wine, can of Coca-Cola, large bottle of water, cup of coffee, suncream and insect repellent – has fallen in 33 of the 42 worldwide destinations surveyed and by over 10% in 11 of them. Besides the power of the pound, local price cuts are a factor in 19 destinations. 

Value is one of the determining factors for the top 10 destinations chosen for Post Office Travel Money’s 2020 hotlist, where four destinations – Bulgaria, Japan, Portugal and Vietnam – already feature in the worldwide barometer top 10.

Where's the cheapest holiday destination?

  1. Bulgaria (Sunny Beach) £30.68
  2. Turkey (Marmaris) £44.15
  3. Japan (Tokyo) £48.21
  4. Portugal (Algarve) £49.87
  5. Spain (Costa del Sol) £53.16
  6. South Africa (Cape Town) £59.39
  7. Vietnam (Hoi An) £59.49
  8. Indonesia (Bali) £61.43
  9. Czech Republic (Prague) £63.02
  10. Cyprus (Paphos) £63.22

Topping the chart at just £30.68 for the eight items, Sunny Beach, Bulgaria has proved unbeatable value in Europe in recent years and is cheapest worldwide. The resort’s rock-bottom prices for UK visitors have fallen a further 15% since last January. 

Tokyo (£48.21) is the best value long-haul destination, overtaking Cape Town (£59.39). Tourist prices in the Japanese capital have fallen by over 13%, despite hosting the Rugby World Cup last autumn – which can only bode well for sports fans who have a ‘yen’ to go to this summer’s Olympic Games. Vietnam has overtaken Bali to become this year’s best value long-haul beach resort, thanks to a 14% fall in tourist costs in Hoi An (£59.49). 

Despite widespread falls, prices have gone up in over 20% of destinations – including rising meal costs making Prague nearly 11% more expensive year on year (£63.02). 

Aside from Cape Town, the biggest increases globally are in Mombasa, Kenya (£66.95, up 19.8%), Phuket, Thailand (£97.64, up 18.3 %) and Rodney Bay, St Lucia (£93.99, up 17.4%). The most expensive destinations remain Abu Dhabi (£152.11) and the Seychelles (£165.10) – but prices have dropped by nearly 10% in both.