Synonymous with long sandy beaches and beautiful waters, the Algarve on Portugal‘s southern coastline is a holiday favourite for Britons. Not only does the destination offer fairly mild winters and toasty summers, but it’s also ranked highly for its budget-friendly offering.

According to the 2024 Worldwide Holiday Costs Barometer from The Post Office Travel Money, the Algarve ranked in the fifth best destination for ” holiday money value in 2024″.

Furthermore, the Algarve was highlighted as the cheapest destination in the report for a cup of coffee and a glass of wine.

According to the Post Office Travel Money, on average you can expect to pay just £1.76 for a glass of wine. Comparing this to the price of the average glass of wine in London where you can expect to pay somewhere between £7 and £13 a glass, it’s quite the saving.

Your cup of morning coffee is also extremely purse-friendly in the Algarve, with The Post Office Travel Money finding the average price of a coffee is just 88p.

For wine lovers, the Algarve is a fantastic destination with plenty of vineyards within reach. The wine region is protected by the surrounding mountains. Although a small number of wineries in the Algarve wine region produce white wines, the region is best known for its red wines.

Given that the region enjoys plenty of sunshine, it offers great conditions to make perfect, juicy red wines. White wine is slightly less commonly made, though there are still some wonderful fresh options to enjoy.

Of course, it isn’t just the wine that draws people in from all around the world. 

The beaches are undoubtedly one of the Algarve’s biggest hits. Visit Portugal said: “There’s no shortage of high-quality beaches either. Sandy stretches as far as the eye can see, framed by golden cliffs, virtually deserted islands marking the boundary between Ria Formosa and the sea, and small coves sheltered by the rocks.”

And even though accommodation can be pricey in the high season, the Post Office Travel Money report highlighted the coastal region’s value for money in other ways. The report took into account the price for meals, drinks and other tourist items to determine visitors could expect a spend of £59.69.

The Post Office Travel Money stated: “Portugal’s Algarve is the highest placed of 15 European destinations surveyed, holding on to fifth place with a 1.2 per cent drop in prices to £59.69.

“In doing so, it has overtaken Turkey and Bulgaria, where price rises have seen Marmaris and Sunny Beach fall from last year’s top three to seventh and ninth places respectively.”