Despite economic uncertainty and the cost of living causing most of us to tighten our pursestrings recently, there’s one thing few of us are unwilling to give up – travel. A 2024 study by Amex Travel found that almost half of Brits were interested in taking a major trip more so than before, while more than half of those surveyed said they are saving up for a bucket list adventure.
While our wanderlust hasn’t dampened, how we travel has changed, and many travellers are more savvy than ever when securing a jet-set deal.
Have no fear; the 19th annual Holiday Money Report from Post Office Travel Money is here, highlighting the global destination where our money goes further.
The Post Office’s report looks at factors likely to influence holiday decision-making in the year ahead, from exchange rates to the cost of eating out and visiting each destination's most popular tourist attractions.
With the help of national and local tourist boards, the Post Office tallied the cost of eight key holiday items and experiences. These include a three-course meal for two with wine, a cup of coffee, a bottle of local beer, a can of cola, a glass of wine, a bottle of still water, suncream and insect repellent.
According to the study, Portugal’s Algarve region tops the leaderboard for the first time in nine years, closely followed by Cape Town in South Africa and Tokyo, the Japanese capital, in second and third place.
The average three-course meal with wine sets travellers back by £40.33, while a large bottle of water costs 35 pence and a bottle of local beer just £2.12. On the flip side, a multi-course supper in New York costs an average of £128.27 and a bottle of beer or lager £7.07.
After claiming the top spot in 2023, Cape Town claims second place for a second year, with water, wine, beer, sunscreen, coffee and insect repellent all costing less than £5 – a three-course meal averages £41.96.
Mombasa in Kenya has taken the third spot, Tokyo in Japan fourth, and Portugal’s Algarve fifth. The Algarve is the highest placed of the 15 European destinations surveyed, overtaking Turkey and Bulgaria.
Below, we round up the world's 10 cheapest and most expensive destinations. The corresponding price is the combined average price of a local coffee, beer, cola, glass of wine, bottle of water, suncream, insect repellent, and a three-course meal.
The cheapest destinations in the world in 2025
- Algarve, Portugal: £58.95
- Cape Town, South Africa: £59.84
- Tokyo, Japan: £63.34
- Kuta, Bali: £66.88
- Delhi, India: £69.52
- Sunny Beach, Bulgaria: £71.46
- Hoi An, Vietnam: £73.23
- Prague, Czech Republic: £75.92
- Phuket, Thailand: £76.10
- Costa del Sol, Spain: £76.51
The most expensive destinations in the world in 2025
- New York, USA: £167.85
- Hawaii, USA: £155.80
- Nice, France: £153.03
- Mahé, Seychelles: £152.21
- Darwin, Australia: £146.45
- Cairns, Australia: £138.14
- Melbourne, Australia: £132.20
- Rodney Bay, St Lucia: £132.08
- Bridgetown, Barbados: £131.80
- St. John’s, Antigua: £131.22