The best-value holiday spots for 2025
Every year, we share where UK travellers can get the most for their money.
In 2025, a strong pound means your money could go further in lots of places. While sterling's road ahead may be rocky against the US dollar, 23 of our best-selling 30 currencies have weakened against the pound since last March.
For the 19th annual Post Office Travel Money Holiday Money Report, we surveyed 47 destinations to create our biggest ever barometer of costs. It found prices for food, drinks and other things tourists buy have gone down in around half of those we also looked at in 2024.
The Algarve is the best value spot again after nine years. But long-haul spots like Cape Town, Tokyo and Bali offer some of the lowest prices for UK travellers, taking five of the top six places.
Check out the highlights and top 15 best-value places from our 2025 report here. Or download the full Worldwide Holiday Costs Barometer for more details.
Best value destinations 2025: key findings
- The Algarve in Portugal is the cheapest holiday destination this year, thanks to low-cost meals and drinks. A three-course meal for two with wine costs just £40.33
- Cape Town, South Africa, retains second place, despite an 11% rise in prices compared to last year
- Tokyo, Japan, moves up to third place, though prices have increased by 7.4% year-on-year
- Bali climbs to fourth place, with a total holiday cost of £68.88, up 5% from last year
- Delhi, India, jumps from 13th to fifth place, thanks to a 10%.7 drop in local prices
- Prague, in the Czech Republic, re-enters the top 10 in eighth place, after a fall in prices of over 20%
- Hoi An, Vietnam, drops from first to seventh, as local costs rise by 41.3%
- Phuket, Thailand, returns to the top 10, ranking ninth, with a 2.7% decrease in costs
- Punta Cana, Dominican Republic, sees the biggest price drop, falling 26%. It’s the only Caribbean destination to make the top 20
- New York is the most expensive city in the survey, with costs rising 15.6% to £167.85
