Asia is a bargain bet for British holidaymakers in 2025 once again says Post Office Travel Money's latest Long Haul Holiday Report, but there are interesting price falls in the Caribbean too. Olivia Palamountain reports

British travellers seeking winter sun bargains will find prices have dropped in over two-thirds of long haul destinations surveyed, with Asian locations claiming seven of the top 10 spots for value in the Post Office Travel Money's annual report.

According to the Long Haul Holiday Report 2025, the biggest price falls occurred in Barbados at 18.8%, followed by Malaysia at 18.6% and Thailand at 14.1%, according to the 17th annual survey of 30 long haul destinations. Nineteen of 28 locations surveyed in both years recorded lower costs, driven by a combination of stable local prices and sterling's strength against most currencies.

Leading the rankings, Hoi An in Vietnam reclaimed its position as the cheapest destination at £58.81 for a basket of 10 tourist staples, including a three-course evening meal for two and a range of drinks. The Vietnamese resort's costs fell 10.9% from last autumn due to declining local prices and the weakening dong currency against the pound.

Cape Town in South Africa ranked second at £64.28, whilst Bali claimed third place at £67.79 despite local prices rising 10.8%. The Indonesian resort benefited from an 11.3% fall in the rupiah's value against the pound, offsetting the price increases. Bali also offers the cheapest meal among destinations surveyed, with a three-course dinner for two with wine costing £35.48.

Mombasa in Kenya secured fourth position with costs falling 1.7% to £68.33, overtaking Tokyo which dropped to fifth after prices rose 5.6% to £68.61. Two new entries appeared in the top 10, with Penang in Malaysia ranking seventh at £83.85 and Phuket in Thailand ninth at £87.82, both benefiting from substantial price decreases.

Laura Plunkett, head of travel money at Post Office, said: "Although sterling has fallen from its high point earlier this year and there are concerns about possible volatility this autumn, it's important to note that it is stronger against most currencies than a year ago. Furthermore, local prices are stable in most of the destinations we surveyed, with falls in over 40% of them, so the prospects for winter sun holidaymakers look bright - especially in many Far Eastern and Caribbean countries where a combination of these factors means reduced prices for British travellers."

Sterling currently trades stronger against 20 of the 25 currencies used by destinations featured in the report. Where the pound weakened, falls were mostly minimal, including 0.5% against the Brazilian real, 2% against the Mexican peso and 2.1% against the Thai baht.

However, an 18% drop in sterling's value against the Egyptian pound, combined with a 16% increase in local prices, caused costs in Sharm el-Sheikh to surge 41.5% year-on-year. At £110.21, the Red Sea resort fell seven places to 14th position.

Mahé in the Seychelles emerged as the most expensive destination at £187.57, primarily due to high dining costs of £129.88 for a three-course meal for two with wine. The Seychelles location costs more than twice the total of any top 10 destination. New York ranked as second most expensive at £165.85, significantly pricier than Orlando at £111.56, though both US destinations benefited from a 4% fall in the dollar's value against sterling.

Caribbean destinations showed significant price reductions, with St. John in Antigua dropping 10.9% to £112.90 and Barbados falling 18.8% to £116.38. Dubai costs decreased 11.1% to £124.99, whilst Darwin in Australia fell 10.1% to £141.13.

In the Indian subcontinent, falling prices enabled Sri Lanka to gain ground on India. Prices in Colombo dropped 5.4% to £73.93, taking the Sri Lankan city to sixth place, whilst Delhi fell to eighth after prices jumped 14.6% to £85.89.

The Post Office, which accounts for one in four UK foreign exchange transactions, recommends holidaymakers change more than £500 to secure better exchange rates at branches and online, avoiding the poor rates typically offered at airports.

The survey methodology involves collecting prices for a standardised basket of tourist items across all destinations, allowing direct cost comparisons. The basket includes meals, drinks and other common tourist purchases, providing a practical measure of day-to-day holiday expenses beyond accommodation and flights.