Brits want a holiday bargain more than ever and are even checking how much foreign currency they’ll get for their pounds before choosing a destination. We’re also hunting for hotspots with low resort prices and more flight options so getting there is cheaper, according to the Post Office’s new Holiday Money Report.
A Post Office survey to find 2013’s best value hotspots also reveals:
- Spain and Sri Lanka are cheapest of 42 destinations
- Mexico remains holiday hotspot for second year running
- Turkey returns to best value top 10
- Vietnam and Bali leapfrog Thailand to reach top five value destinations
- Lithuania, Qatar and South Korea will be future hotspots
Andrew Brown, Post Office Head of Travel Money, said: “There are growing signs that UK holidaymakers now check the value of sterling and the costs they face in overseas resorts before booking. The destinations which benefited last year were those where the power of the pound put more money in the pocket or where the price of meals and drinks meant holiday cash stretched further – and often a combination of the two. We expect to see the same pattern emerging in 2013.”
Spain is a strong contender after topping the Post Office Worldwide Holiday Costs Barometer for the first time – although it shares first place with Sri Lanka (above). They are the cheapest of 42 destinations after price cuts in the Costas and a 27 per cent rise in Sri Lanka saw Spain gain ground on last year’s runaway winner.
At £36.14 for eight items, including an evening meal with drinks, Spain and Sri Lanka’s holiday cost totals were under half those of 21 other destinations and a quarter the cost in Australia and South Korea, the most expensive. Despite the resort price rises, Sri Lanka is one of 10 hotspots for 2013. The country should gain from a sterling exchange rate 16 per cent stronger than a year ago and more competition in the air as British Airways resumes flights this spring.
Mexico – eighth in this year’s barometer with a basket total of £48.93 – is also in the hotlist. This comes as Post Office peso sales surged 34 per cent last year, contributing to a growth of 216.5 per cent since 2007. Low hotel and resort costs as well as more direct flights to Cancun should help Mexico maintain a momentum.
In the eurozone low meal prices not only helped Spain’s Costa del Sol to a dead heat for the top spot but means eating out can be 50 per cent cheaper than five years ago. But the Costas face stiff competition from Greece, where room rates are down by up to 40 per cent and an 18 per cent drop in resort costs (Corfu: £57.50), the biggest fall in Europe, should help boost demand. Elsewhere, eurozone prices rose six per cent in Sorrento, Italy (£87.06), making the country 50 per cent pricier than Greece.
Spain can also expect more competition from outside the eurozone. The Post Office tips both Croatia and Turkey in its 2013 hotlist. Croatia is now one of its top ten destinations after a doubling of Croatian kuna sales in five years. Sterling’s strength and easier access from regional airports increased demand and Post Office consumer research found that Croatia was rated good value, despite being more expensive than many competitors.
Turkey returns to the barometer’s top 10 for the first time since 2008 after meal prices in Marmaris tumbled 22 per cent. As a result of this and a stable exchange rate, Turkey’s barometer total of £52.89 is 16 per cent lower than last year.
Andrew Brown said: “Turkey had a tough year in 2012 because of reduced flight capacity from the UK. However, the country has a well-deserved value for money reputation and the drop in visitor numbers last year resulted in healthy competition between restaurants and bars. Provided resort costs remain at their current levels and sterling holds its value, there will be plenty for holidaymakers to look forward to visiting Turkey this year.”
In the Far East, falling prices in Bali (£40.47) and Vietnam (£43.20) helped these fast-rising destinations overtake Thailand to take fourth and fifth barometer places. Vietnam benefited from the introduction of direct flights from the UK, with the Post Office reporting growth of 51 per cent year-on-year in Vietnamese dong sales. More hotel openings are expected to keep room prices competitive.
Once a barometer top 10 regular, Thailand has now fallen to 16th place (£58.31) and rising resort prices mean tourists can expect to pay 22 per cent more this year as well as a third more than in Vietnam. However, the introduction of direct flights to Phuket on the revolutionary Dreamliner later in the year will make Thailand a strong 2013 contender.
Lithuania is identified as the next Baltic State to benefit from high demand for low cost city breaks and heads this year’s Post Office list of emerging destinations. Its capital Vilnius is tipped to emulate the success of Tallinn and Riga on the back of a 42 per cent surge in sales of the Lithuanian litas during 2012.
Three Middle East countries are included in the five emerging destinations named by the Post Office. Qatar, Oman and Jordan all made significant headway in 2012 and are expected to gain further ground following heavy investment in tourism. South Korea – put on the map by Gangnam Style singer PSY, completes the list of new pretenders, chosen as a wild card after a 36 per cent increase in currency sales of the Korean won. BA’s new flights also make it easier to reach.
For full details, visit www.postoffice.co.uk/holidayreport2013
