Consumer spending on car purchases in the UK has risen three times faster than public transport journeys, with £57.4bn spent on new and used cars in 2023, according to AA analysis of Office for National Statistics data [9ed68157]. In other news, a Greek restaurant on the holiday island of Mykonos has faced criticism for charging holidaymakers £690 for two drinks [9ed68157].
The pound has strengthened against several currencies, making travel cheaper for Britons. Over the past year, the pound has appreciated by 16.25% against the Japanese yen, 8.57% against the US dollar, and more than 7% against the New Zealand and Australian dollars. It has also gained against the euro, making popular European destinations like Spain, France, Italy, and Greece more affordable. The Post Office Holiday Money Index reports that holidaymakers are now getting more for their money in 21 of the 25 bestselling currencies. The Turkish lira has plunged, making Turkey 73% cheaper for British tourists. Other destinations where the pound goes further include Egypt (87.8% more value), Kenya (20% more value), and the Caribbean. The appreciation of the pound is attributed to the UK's economic growth outperforming other countries, with a growth rate of 4.6% over the past two years [2692da90].
In a recent study by Good Travel Management, Hong Kong has been ranked as the second most budget-friendly destination for UK travelers, with visitors budgeting an average of £108 daily but spending only £42. This marks a significant increase in UK visitors to Hong Kong, with 331,000 trips recorded in 2023, up from just 91,000 in 2022. The affordability of options and the availability of free attractions contribute to this lower spending. Barbados tops the list for budget-friendly travel, while other value destinations include Luxembourg, Australia, and New Zealand. In contrast, UK travelers tend to overspend the most in Finland, where the average spending is £148 against a budget of £103 [53af4d25].
The Algarve in Portugal has been named Europe's cheapest holiday spot for 2024, according to the Post Office Travel Money. The study found that the Algarve offers better value for money compared to other European destinations. A cup of filter coffee costs only 88p, a local beer is priced at £2.20, and a glass of wine at £1.76. The average three-course dinner for two, accompanied by a bottle of house wine, totals £39.52. The Algarve is known for its stunning coastline, beautiful beaches, sea caves, and rock formations. Visitors can also explore historic towns like Lagos, Silves, and Alte, and enjoy delicious Portuguese cuisine at traditional restaurants. The Algarve was ranked fifth best-value destination in the world for 2024. Locals recommend avoiding the months of July and August due to the hot and busy weather. Instead, May, March, October, and November are considered great months to visit [b1b66c75].
Ibiza, a popular party island in Spain, has been named one of the top 10 cheapest all-inclusive destinations for a last-minute holiday. A week-long all-inclusive trip to Ibiza will cost an average of £1,046 per person. The island offers a range of price points, with mid-range and keenly-priced properties available. Jet2 and Tui are among the airlines offering affordable holiday packages to Ibiza. In addition to its party scene, Ibiza offers attractions such as beach hopping cruises, exploring cobbled streets, and enjoying the local food scene. Some recommended food spots include El Bigotes, Chiringuito de Aguas Blancas, Xiringuito Xuclar, and Fish Shack. Other attractions include Es Vedra, sandy beaches like Cala Saladeta and Playa S'Arenal Petit, and the historic site of Dalt Vila. Ibiza is known for its vibrant nightlife, with popular clubbing spots like Pacha and Ushuaïa [7a054e27].
Savers currently have a rare opportunity to increase the purchasing power of their money, as interest rates have remained steady and inflation has dropped, but the Bank of England is expected to cut the base rate soon [9ed68157].
International travel rates are up, making many global destinations more affordable than domestic travel for US jet-setters. Factors such as a strong dollar, lower costs of living in some countries, depreciation of some currencies, and the return of travel rates to pre-pandemic levels contribute to the affordability. Stacker created an index for bargain hunters looking to travel abroad this fall, ranking countries based on appeal, costs, and relative bargain compared to pricing five years ago. Some affordable destinations include Luxembourg, Denmark, Qatar, Czechia, Switzerland, Singapore, Chile, United Arab Emirates, China, and the United Kingdom [8d74f898].