10 of the best cheap holiday destinations in 2025

The Post Office Holiday Money Report 2025 is out and we’re digging into the details to reveal the cheapest places to go on holiday. This in-depth report is released every year with facts and figures of in-country costs like a cup of coffee, a glass of wine, and insect repellent. 

Based on the 47 surveyed destinations from this list, we’ve selected 10 of the cheapest from across five continents. We’ve also added in the average costs of flights and accommodation to give you a fuller understanding of the total holiday cost. 

So if you’re looking for a cheap getaway in Europe or want to spend your Air Miles on an African adventure, you can splash out while sticking to a budget.

What is the Post Office Holiday Money Report?

Every year, the Post Office releases a report based on the strength of the pound in different destinations around the world. Now in its 19th year, the annual holiday money report helps travellers pick the cheapest country for their next holiday and get the best bang for their buck.

The list includes the 47 places to go on holiday, based on typical tourist spending. Their Worldwide Holiday Costs Barometer includes the average prices of these eight items:

How we built this list

We based this list of best value destinations on the Post Office Report which includes details of in-country spending and value of the pound. For a range of different experiences, we’ve chosen the best two destinations from Europe, Asia, Africa, and the Americas.

But we’ve expanded our research to include average return flight fares and time across the year from London using Skyscanner. For short-haul flights, you'll usually have to factor in extra luggage costs. Some of the destinations with longer flight times and higher prices, using saved Air Miles means you can still keep your costs low.

We also calculated the average hotel costs sourced from Kayak and Booking.com. We took the average fares from across the year, so bear in mind that peak season prices will be slightly higher, but off-season prices you can expect to be cheaper.

Travelling just as it hits the off-peak season would be the sweet spot in terms of price and temperature for many of these destinations. 

Europe 

1. Algarve, Portugal

Portugal’s Algarve region is not only the cheapest European destination, but is the cheapest overall destination on the list this year. Located on the Southern coast of Portugal, this popular destination is ideal for cheap holidays in the sun without having to travel too far. 

There are a few different cities located within the Algarve region, including Faro, Silves, and Lagos. You’ll find miles of gorgeous coastline, golden sandy beaches, and temperatures of up to 30°C in the summertime. For milder heat and lower prices, try visiting in May, June, or September.

2. Europe: Sunny Beach, Bulgaria

At number six for cheapest holiday destinations, Sunny Beach sits along the Black Sea coast of the Balkan region of Europe. It has a reputation for being a party region, meaning it’s ideal for a group holiday with friends. You can sit in the sun along the golden beaches during the day and enjoy the bar scene at night for a cheap and cheerful holiday with friends.

If you're looking for a little culture, UNESCO town Nessebar is nearby, as well as quaint fishing village Sozopol a little further along the coast.

Due to its seasonal popularity, prices for flights and hotels vary hugely, so summer months feature peak prices. Avoid July and August and you’ll be able to enjoy a trip with a low overall expense.

Asia

3. Tokyo, Japan

As the capital city of one of the most high-tech countries in Asia, you can expect a fun and vibrant experience in Tokyo. It’s ideal for those who love the fast-paced world of capital cities, especially those who love quality food, video games, anime, and the flashy neon sprawl of high-rise buildings. Things are efficient, clean, and high-speed in Japan’s capital.

Winters are cold and summers are hot, so the sweet spot for most people will be spring and autumn. The famous cherry blossom season of spring is a popular time to travel, so expect above average prices and crowds.

4. Kuta, Bali, Indonesia

On the Indonesian island of Bali, Kuta comes in at number four on the list, up four places from last year. If you want to really treat yourself to some island R&R, this is the place to do it. With beautiful beaches, affordable spa treatments, and world-famous ashrams for yoga practice, it’s hard not to relax. There’s plenty for a more activity-filled holiday, too, with water sports to try and a lively nighttime scene.

This is another destination suited for using Air Miles, as the flights will be the biggest expense in terms of price and time. Accommodation prices are especially low in Kuta, so you can easily extend your stay to make up for the long journey.

Africa

5. Cape Town, South Africa

Cape Town held its place as the second cheapest destination, and offers a wealth of different experiences. From the views atop Table Mountain to exploring historic neighbourhoods and lazing on the beach, you could tick off plenty of activities.

There are many outdoor activities to enjoy, like hiking, surfing, whale watching, and penguin peeking. As a wine region, you’ll find especially great value for a glass of wine or a local vineyard tour.

6. Mombasa, Kenya

There’s so much to do in Mombasa, and with a long journey to get there, it’s worth spending at least a week. At number eleven on the list, enjoying the events and activities is pretty affordable, and the list is long and varied.

You’ll find wildlife sanctuaries, marine parks, even crocodile farms, and coral reefs for those interested in animal and wildlife conservation. There are also plenty of local vibrant markets, annual festivals, and UNESCO World Heritage sites that can fill a day of exploration, too.

North America 

7. Toronto, Canada

At number 18 sits the most populous city in Canada: Toronto. As one of the most multicultural cities in the world, it's a definite food hub. From Korean, Ukrainian and Mexican, as well as their famous poutine dishes, a trip to Toronto is not complete without exploring the restaurant scene.

The Toronto skyline is pretty hard to beat, too. Sitting on Lake Ontario, it's a picturesque place to wander and watch the boat races, kayakers, cyclists, and skaters — or take part.

There's also plenty to do indoors, with big venues like the Toronto Opera House, Canada National Ballet, the CN Tower observation deck, and Royal Ontario Museum. 

8. Punta Cana, Dominican Republic

Punta Cana has scooted up 12 spots to sit at at impressive number 19 on the list this year. As a coastal nation in the Caribbean Sea, you can expect palm-tree lined beaches and a tropical climate.

The Dominican Republic is ideal for a lazy holiday soaking up the sun on the beaches. Water lovers can also partake in snorkelling, jet skiing, and a wealth of other water sports in between catching rays.

Nothing goes hand in hand with a beachy holiday quite like cocktails. You'll find plenty of buzzy bars and clubs for keeping it lively at night. 

South America

9. Santiago, Chile

This brand-new entry on the list sits at number 20, and as the capital of Chile, it offers quite a lot to do.

You can expect plenty of great restaurants, bars, markets, and events year-round. Santiago has a vibrant nightlife, with all kinds of bars and clubs, and lovers of live music will find plenty of jazz clubs in particular.

Chile is known for its wine, and you'll be able to partake in wine tours to explore its wealth of vineyards and winieries.

The geography of Santiago makes for a variety of activities available to visitors; the city lies on the coast bordered by the Andes mountains. Head into the moutains for hiking, skiing, and cable car journeys, or stay beachside to enjoy the Pacific Ocean.

10. Rio de Janeiro, Brasil

Rio is a brand- new entry on the Post Office Report this year, and there is quite literally something for everything. Its most famous event is the Carnival, a festival held early in the year before Lent. Featuring several days of floats, parades, dancing, and general festivity, it's a popular attraction every year. 

Outdoor explorers can enjoy hiking in Tijuca National Park, exploring Flamengo Park, and enjoying panoramic views from Sugarloaf Mountain. The iconic Christ the Redeemer statue is one of the most recognisable landmarks in the world.

You can also rest and recuperate at one of Rio's many beaches, the most famous of all, Copacabana. The bright sand, vibrant waters, and mountaineous backdrop make Rio beaches some of the best in the world.

Top tips for good travel deals

We’ve got a few last few tips for making the most of your money and your holiday. Who says you can’t enjoy a decadent holiday while sticking to a budget?

Set up flight alerts

If you’re set on a destination and you’ve got flexibility on when you go, set up flight alerts and get notified of price drops. Flight prices fluctuate a lot based on season and even day of the week, so you don’t need to book as soon as you decide. Our favourites are Google Flights, Skyscanner, and Kayak.

Use incognito mode

Okay so this tip does contradict the previous one, but if you’re just researching to get ideas, incognito is your friend. This means you won’t be tracked by cookies when you browse, which can result in higher prices shown to you if a site recognises you’re likely going to book. Use this for researching flight and hotel prices as well as things to do and how to get to the airport.

Book early

Of course you can get last-minute deals, but in general, a more affordable holiday involves more advance planning (and less stress). They say the optimal time to book for low prices is 50–60 days ahead of travel, although this is more of a theory than fact.

Take advantage of loyalty programmes

Accommodation websites like Booking.com, Expedia and Hotels.com have their own loyalty programmes which reward you the more you book. This means extra discounts, free night stays, complimentary upgrades, and airport shuttles. As always, compare with other sites to make sure you’re actually getting a good deal.  

Use Air Miles 

Some of the cheapest holiday destinations on this list are long haul, so it just makes sense to use Air Miles if you have them. For closer spots in Europe that come with a cheap flight fare, it’s better to save your Air Miles and book on your Air Miles credit card to earn instead.

Book with credit cards

Credit cards come with higher protection if you need to cancel or dispute a booking. It’s also generally better for currency conversion if you’re booking in a different currency (like Ryanair). 

Set yourself a realistic daily budget

You can splash out on a holiday while still sticking to a budget. Use the Post Office Holiday Report to get a general idea of what you’ll be spending on food and activities and decide what makes sense for you. Give yourself a little wiggle room for little extras like a fancy meal or spa treatment.

Buy cheaper items at home 

Did you know that sunscreen is generally a lot cheaper in the UK than in Europe? This also applies to things like cold medicine and basic pain relief, so it’s good advice to stock up and bring with you. For those travelling light with liquid restrictions, try this airport click & collect hack to pick up items after security.

Get travel insurance

There are lots of things that can go wrong or cost you more money when you travel. From lost luggage to getting sick, it’s best to be covered for the worst-case scenario.

Our travel insurance comparison tool means you can pop in all your details and compare for the best deal for you. Whether you want the most comprehensive or the best price, we’ll give you a list of options with everything you need to know. Plus, you’ll earn a commission for using our site to book with an insurance provider.

Travel light

Many budget airlines impose quite strict and expensive fees for checked and even carry-on luggage. Skip the hefty fines by travelling light and sticking to a personal item and overhead cabin bag if you can.

Compare currency exchange rates

Do your research to find the best currency exchange for local money. This is often cheaper than using an ATM overseas, so make sure you compare the rate and any fees.

Get cashback

We offer cashback on thousands of different brands to members of our site. Cashback is basically a commission brands pay us for referring customers, and we pass 100% of this commission on to you if you’re a member. 

There are all sorts of parts of your holiday you can earn cashback on: accommodation, flights, airport transfers, parking, car rental, currency exchange services, and activities. Just be aware that cashback is a perk rather than a guarantee, and you should always compare to see which is a better deal.

Travel smart, spend less

Who says you have to stick to only staycations to keep within your budget? Finding destinations with great value and low day-to-day prices means you can enjoy an overseas trip away without splashing out.

The Post Office Holiday Report comes out every year, so we’ll keep this guide updated with each new change as prices fluctuate.