Cheapest family holidays abroad revealed - including Spain hotspots where prices have DROPPED

And for those who haven't booked yet, the analysis could provide inspiration for a cheap last minute break.

Especially because three quarters of families (73%) overspent by a record 55% on their last trip, according to research by the Post Office.

Those questioned splurged an extra £312 on their average budget of £566, with food and drink causing the biggest overspends.

Research in the Post Office's Family Holiday Report 2024, created with travel operators TUI, found 90% of the parents asked spent an average of £378 on food and drink, including in restaurants and from the supermarket.

Parents were also busting the budget on beach items such as inflatables, ice creams and water parks, which cost an average £202 last year, with 88% caving to children's demands.

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The Post Office research focuses on these and other common holiday costs to rank 16 popular European resorts TUI offers packages to. The items include lunch and evening meals, snacks, drinks, suncream and insect repellent.

Although its prices have risen by nearly 10% in the last year, Sunny Beach in Bulgaria is the cheapest destination for on-the-ground costs, toppling Marmaris in Turkey from the top spot.

While Spain's Costa del Sol comes in fourth, its prices have actually dropped 0.7% in the last year. And it's a similar story for other Spanish spots.

Majorca comes in ninth cheapest but has seen a 1.2% drop in prices.

However it's Lanzarote which has seen the biggest drop in prices, falling 7.2% year on year. Holidaymakers heading to a café or bar on the Canary Islands favourite can buy a cup of coffee for £1.52, a bottle of beer for £2.17 and a glass of wine for £2.82.

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While coffee is a similar price in Ibiza, a bottle of beer and glass of wine will each set you back £3.91.

As the most expensive destination of the 16 analysed, a three-course family meal in Ibiza, including wine and soft drinks, costs an average £128.55, but just £59.38 in Sunny Beach. Generally, holiday items cost twice as much in Ibiza as they do at the Bulgarian beach resort.

NimbleFins previously reported the cheapest week to fly over the summer holidays was the end of the break, with the week of August 26 coming in at £216, followed by September 2 and 8 at £209.

This compares to £278 for the first week of the school holidays - week commencing July 22.

The Post Office said: "As the cost of living goes up, sticking to your travel budget is more important than ever.

"Although prices have risen in 12 of the 16 European resorts we surveyed, families could still save money by choosing their destination carefully."

For travellers wanting to take cash with them, the Post Office suggested they can make the most of their money by keeping an eye on the exchange rate in the months leading up to their trip to spot when prices are coming down.

It added: "Travel insurance is hugely important if you’re going away. You should take out insurance as soon as you have made your travel plans and parted with any money. Things can happen before or during a trip.

"Travel insurance will typically provide cover for cancellation, lost or stolen personal possessions, including money, as well as emergency medical and repatriation cover."

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