The Post Office has revealed that Vietnam is among the best value destinations for 2024, but Spain has become more expensive for Brits. Olivia Palamountain reports

The Post Office’s Travel Money division has released its 18th annual Holiday Money Report, revealing the best value destinations for UK travellers in 2024.

The report highlights the impact of sterling’s strength on holiday choices, with 90 per cent of the Post Office’s bestselling currencies currently weaker against the pound compared to a year ago.

The Worldwide Holiday Costs Barometer, featured in the report, surveyed 40 resorts and cities, finding that prices for meals, drinks, and other tourist items have fallen in 25 of them since last year.

Although local prices have increased in four out of five destinations, the strength of sterling means that UK travellers can expect to pay less than a year ago in 19 long-haul destinations and six European ones.

Long-haul destinations dominate this year’s list, with Vietnam, South Africa and Kenya offering the lowest prices.

Vietnam leads the rankings for the first time, moving up from sixth place last year. It is one of only eight destinations to combine lower local prices (down 14.4 per cent in Hoi An) with falling currency values. A can of beer costs little more than £1 in a bar, for example.

At £51.18 for a “barometer basket” consisting of a range of drinks, a three-course meal for two with wine, sunscreen and insect repellent, Hoi An has overtaken last year’s leaders to rise from sixth to first place in the worldwide barometer. It has done so because it is one of only eight destinations to combine a reduction in local prices with falling currency values. Post Office Travel Money 2024 Post Office Travel Money 2024Japan is another Far Eastern destination to benefit from a significant rise in sterling’s value combined with a fall in local prices. Tokyo has moved up four places into fourth position after seeing barometer costs plummet by 16.2 per cent to £59.05.

Cape Town, last year’s leader, now occupies second place, despite a surge in sterling’s value against the South African rand and a nearly 5 per cent increase in local prices. Mombasa, Kenya, in third place, has seen costs fall by almost 7 per cent and has moved up one place since last year.

Tamarindo, Costa Rica, is the most expensive destination in the barometer, with prices up 13.2 per cent year-on-year.

Although British holidaymakers continue to rate Spain as the best value destination according to consumer research conducted for the Holiday Money Report, it does not feature in the top ten and has fallen to 14th place after recording a 9.3 per cent price rise this year to £81.45.

Instead, Portugal’s Algarve is the only European destination to feature in the top five (the highest placed of 15 European destinations surveyed), as Turkey and Bulgaria lose ground due to price rises in Marmaris and Sunny Beach, respectively. These increases have caused them to drop from the top three to seventh and ninth places.AlgarveWhile Turkey has previously offered good value, the country’s challenges with super inflation mean prices have more than doubled and even the strong pound can’t cancel that out.

Bali and Egypt complete the top 10 destinations. In eighth place, prices in Kuta are down 6.7 per cent to £63.31, while Sharm el-Sheikh has moved up to sixth place as a result of the devaluation of the Egyptian pound in early March. At £61.37, prices have fallen by 17.6 per cent.

Laura Plunkett, head of Post Office Travel Money, says: “The barometer results make it clear how
important it will be this year to consider how sterling’s strength has impacted individual destinations.
Holidaymakers intending to travel long haul can expect to get more for their money because the pound has gained ground in most destinations.

“By comparison, sterling’s gain against the euro has been more modest so it will pay to compare eurozone destinations to see which offer the cheapest prices. Portugal and Cyprus look the best choices for bargain hunters.”

The report also reveals that over half of Britons plan to travel abroad this year, with 60 per cent having already booked their trips. Despite concerns about overspending, more than half of travellers will dip into their savings to fund their holidays.

The 20 best value places to go on holiday in 2024

Post Office Travel Money 2024