UK holidaymakers are keenly aware of spending this winter. Almost 60 per cent said their travel plans were likely to be affected by the volatility of the pound and a third plan to cut their budget, according to a new report on the prices of typical holiday items in a range of popular destinations.
Among 28 destinations included in the report, 80 per cent have seen prices rise since 2019. However, five popular resorts have seen significant falls in the cost of everyday holiday items. The list of items in the Post Office Travel Money Long Haul Report 2022 includes a cup of filter coffee, bottle of local larger, a bottle or can of Coca-Cola, glass of wine, cocktail, small chocolate bar, small bottle of water, sunscreen, insect repellent and a three-course meal for two adults with a bottle of house wine.
Hoi An, Vietnam takes the top spot as the cheapest destination based on the nine everyday items and meal, with the shopping list coming in at £67.78.
On this basis, it could be the most cost-effective option for a sunny break this autumn or winter.
Accommodation and flight costs will determine a cost-conscious holiday choice, of course. i‘s snapshot research at the time of writing found significant differences between flight and accommodation costs among the destinations included in the report.
In Hoi An, seven nights for two in a four or five-star hotel within driving distance of the city centre are available from around £200 in the first week of January. Return flights from the UK to Da Nang (for Hoi An) start from around £1,000 in January.
Comparative accommodation in Bridgetown, Barbados, the costliest destination based on the everyday holiday items barometer, starts from around £3,000 for seven nights for two. Return flights in January from the UK to Bridgetown start at around £415.
The dreamy island of Phuket, Thailand, has seen the cost of everyday holiday items fall (Photo: Getty)
The destination with the biggest fall in costs since 2019 was the Thai island of Phuket, which moved from 18th to sixth cheapest on the list.
Lower costs in Phuket are due to a combination of local price drops and a 9 per cent fall of the Thai baht’s value against sterling, according to Post Office Travel Money.
Barometer costs have also fallen significantly in Jumeirah, Dubai (down 10 per cent on 2019), putting the mid-haul winter sun destination at number 16 in the table, its highest position to-date.
The five places with the most significant rises include St John, Antigua (55.3 per cent), the Mexican resort of Cancun (42.6 per cent), Santiago, Chile (41.5 per cent), Scarborough in Tobago (38.4 per cent) and Tokyo, Japan (38.1 per cent).
Destinations where costs are lower are likely to better attract UK tourists this winter with 25 per cent of respondents to the YouGov survey saying that they would pick a cheaper place to travel this winter.
The top 10 cheapest destinations, according to the barometer costs
Cape Town, South Africa is near the top of this year’s table (Photo: Getty)
- Hoi An, Vietnam (£67.78)
- Cape Town, South Africa (£68.49)
- Mombasa, Kenya (£77.41)
- Tokyo, Japan (£81.63)
- Bali, Indonesia (£82.40)
- Phuket, Thailand (£93.53)
- Rio, Brazil (£102.25)
- Montego Bay, Jamaica (£110.67)
- Orlando, USA (£111.87)
- Penang, Malaysia (£111.93)
Montego Bay, Jamaica is the lowest-priced of eight Caribbean and Central American destinations included in the barometer, while Bridgetown, Barbados is the most expensive.
The biggest price rises in the region were found in St John’s, Antigua where the cost of everyday items was up 55 per cent.
Elsewhere, Orlando, the destination for Disney World Florida, saw its barometer costs up 29 per cent on 2019. Holidays to the US are also less appealing thanks to the pound’s fall against the dollar.
Travellers seeking an Indian Ocean escape this winter might opt for Grand Baie, Mauritius (where the total barometer cost was £122) over Mahe in the Seychelles (£235), when focusing on these everyday item prices.
Of course, flights and accommodation will be a bigger factor. Seven nights in a four or five-star hotel in Grand-Baie start from around £870 in the first week of January; similar accommodation in Mahe for the same week starts from around £900.
The cheapest return flights from the UK to Mahe in January are around £460; there are no direct flights. Direct, return flights to Grand Baie for the same month start at around £600.
As well as the barometer of costs that the Post Office collated with Travelbag, a YouGov survey was carried out on behalf of the Post Office to gauge holiday plans among UK travellers this winter.
Nick Boden, head of Post Office Travel Money, said: “We advise people planning long haul trips to watch exchange rate movements in the weeks before their departure and purchase their holiday money when the pound rises in value. Our research shows that prices are higher in many destinations than in Europe.
“Holidaymakers who budget carefully to allow for this will benefit from the improved rates offered on higher value currency transactions in our branches or online rather than leaving it to the last minute and getting less cash for their pounds in airport bureaux.”
