Every family holiday starts with the best intentions and a carefully worked-out budget, but can often end with way more spent than planned on ice cream, beers and one too many fridge magnets. If that sounds painfully familiar, allow us to point you towards the Algarve.
Portugal’s sunny southern coast has just been named Europe’s best-value family holiday destination for 2026, according to Post Office Travel Money’s 18th annual Family Holiday Report, produced with TUI. Jumping up from third place last year, the Algarve came out on top in 2026 with an average daily barometer of £139.65 for the same basket of everyday costs, covering things like meals out, drinks, ice cream and a day of sightseeing.
Why the Algarve wins on value
Base yourself in Albufeira, one of the region’s busiest family spots, and you get wide sandy beaches, calm water and no shortage of family-friendly restaurants and places to stay – plus boat trips and water parks aplenty.
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The region ranks highly in the report’s separate Children’s Beach Barometer, which looks at the cost of all your kids’ beach essentials: buckets and spades, swimming goggles, lilos and more.
The Algarve is well-known for its world-class beaches: Praia da Marinha is currently the best beach in Europe, according to . With all the turquoise water, dramatic sandstone cliffs and hidden coves, it’s the sort of beach that makes the rest of your holiday budget feel justified.
The rest of the top 10
Spain dominates the value list this year, claiming six of the top 10 spots, four of which are completely new entries to the report. Sunny Beach in Bulgaria takes second (£142.16), Lanzarote third (£147.42), and Menorca fourth (£151.28).
The 10 best-value family holiday destinations in Europe for 2026
- Algarve, Portugal – £139.65
- Sunny Beach, Bulgaria – £142.16
- Lanzarote, Canary Islands – £147.42
- Menorca, Balearic Islands – £151.28
- Costa Brava, Spain – £155.02
- Tenerife, Canary Islands – £158.31
- Marmaris, Turkey – £158.33
- Costa del Sol, Spain – £163.17
- Costa Blanca, Spain – £173.41
- Paphos, Cyprus – £177.18
At the other end of the scale, Sorrento (£268.23) and Madeira (£260.21) are officially the priciest resorts in the report – almost double the Algarve’s cost for exactly the same list of holiday basics.
Read ’s expert guides to Europe’s best family holiday destinations and cheapest city breaks.
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