Families looking to save money on their summer getaway could find the best value in Portugal, Bulgaria and Spain.New research has revealed the cheapest European holiday destinations for UK travellers.The cheapest places for UK families booking European holidays have been shared in the 2026 Post Office Travel Money Family Holiday Report.The study compares the cost of everyday holiday essentials across 22 popular destinations.Laura Plunkett, head of Post Office Travel Money, said: 'We found big variations in costs between the European resorts surveyed, which means it is more important than ever to do some research before heading off on your holiday.'Here are the hotspots that are currently easiest on family holiday budgets...1. Algarve, Portugal Taking the gold medal as the cheapest spot is Portugal's AlgarveThe Algarve in Portugal has been crowned the most affordable resort for families, according to the 2026 Post Office Travel Money Family Holiday Report.At £139.65 for a basket of ten key purchases, including lunch and evening meals for a family of four, a range of drinks, sun cream and insect repellent, the Algarve offers the lowest overall prices – and costs have fallen by 2.7 per cent since last July.Holidaymakers can expect to pay just £1.27 for a coffee, £2.62 for a beer and £3.49 for a glass of wine, making it one of the best-value spots for families watching their spending.