Go East for bargain breaks

With money still tight for most, many people are looking to save their cash by staying in Britain for their holidays this year. However, new research from Tesco Travel Money shows that those who are yet to book their holiday plans would be wise to look further afield to find their bargain break as Eastern European countries such as Bulgaria, Poland and Hungary are offering the cheapest deals.

The research, which looked at holiday expenses including accommodation, car hire, eating out and family entertainment revealed how much a week away this summer could set a family of four back.

A week spent in Bulgaria would cost a typical family of four £1,221 compared to £2,209 for a week in Brighton. Notably, Bulgaria's costs have dropped by 22% since last year making it the most affordable option this summertime. Other bargains include Budapest, Hungary at a cost of £1,455 and Limassol, Cyprus for £1,739.

At the other end of the scale, there is bad news for Iceland as Reykjavik is likely to burn the biggest hole in people's wallets with expenses for a week's holiday setting a family back a massive £3,383. Even holidays in the economically struggling destinations of Spain (£2,375) and Greece (£2,054) will cost more than the UK with overall costs having risen by six per cent since last year, so it is essential to research where you are going.

If you choose to holiday in the UK over cheaper options abroad, total prices for the week would include £1,140 for accommodation, meals out at cafes for £560, and ice creams for the family coming to £63.

John Howells, Head of Travel Money at Tesco Bank, said: "With the average cost for all items on a holiday for one week coming in at £2,076, a two per cent increase on last year, it is essential holidaymakers are not just looking into the cost of travel but also the expenses they are likely to incur once they are there. For instance, car hire and accommodation, the two most expensive holiday costs that make up 71% of weekly spend, have risen by six per cent since last year. Holiday costs have clearly been impacted by the Euro exchange rate and rising costs in the recession, therefore families wanting a holiday on a shoe string really need to do their research to make their money go further."

Howells adds: "Getting a good rate on your foreign currency can make your holiday money stretch a lot further, and ensure you don't lose out on any savings you might have made by picking up a cheap break. In the unlikely event that you find a better exchange rate at another ‘high street' bureau-de-change, Tesco Bank will match it, so you can buy with confidence at Tesco".