Kenneth Glad
Families often budget for the journey while underestimating what they will spend after arrival. New research compares resort prices and examines the extras most likely to push holiday costs higher.
Portugal’s Algarve ranked first among 22 European beach resorts in the 2026 Family Holiday Report from Post Office Travel Money, produced with TUI.
Its basket of meals, drinks and everyday items totalled €161.34, narrowly beating Sunny Beach in Bulgaria at €164.24. Lanzarote placed third at approximately €170.31.
Prices in the Algarve fell by 2.7% from 2025, allowing the region to rise from third place. Sunny Beach remained close behind despite recording a 9.3% increase.
Spending continues after booking
The comparison does not include flights or accommodation. Instead, it measures ten costs families are likely to face during their stay, including food, drinks, sun cream and insect repellent.
In the Algarve, a beer cost about €3.03, while a three-course family meal with wine and soft drinks came to approximately €89.87.
Spain secured six places in the ten lowest-cost destinations. Menorca, Costa Brava, Tenerife, Costa del Sol and Costa Blanca joined Lanzarote in the upper half of the table.
Extras stretch family budgets
Separate consumer research for Post Office Travel Money found that families planned to spend an average of about €890.73 on meals, entertainment and activities.
However, 85% exceeded their budget. Among those who overspent, the average additional amount was approximately €439.02.
Food and drink accounted for much of the pressure. Families reported spending about €190.63 on eating out, €116.69 in shops and supermarkets, and €107.44 on drinks.
Sightseeing and excursions added another €107.44 on average. Ice creams, beach equipment, water activities and other children’s treats could add between roughly €210.26 and €336.19 for a family of four over one week.
Prices vary within countries
Sorrento was the most expensive resort surveyed, with the basket reaching approximately €309.89. That was €148.55 more than in the Algarve.
Funchal followed at about €300.62, making Portugal home to both the cheapest destination and the second most expensive.
Crete, Majorca and Ibiza completed the five highest-cost destinations. The findings show that choosing a country alone offers little certainty about resort spending.
Five lowest-cost resorts
- Algarve: €161.34
- Sunny Beach: €164.24
- Lanzarote: €170.31
- Menorca: €174.77
- Costa Brava: €179.09
Five highest-cost resorts
- Sorrento: €309.89
- Funchal: €300.62
- Crete: €255.98
- Majorca: €253.76
- Ibiza: €244.81
Sources: Post Office Travel Money
