Portugal’s Algarve has been named the best-value destination for a family holiday this summer, according to a new report comparing the cost of everyday tourist essentials across Europe.Research found that the cost of a basket of 10 typical holiday items varied by as much as 92 per cent across 22 popular European destinations.This comes from the Post Office Travel Money Family Holiday Report, produced in partnership with TUI.It compared prices for items including suncream, coffee and a three-course family meal with drinks to find the Algarve offered the lowest overall costs. A basket of goods for a family of four came to around £140, with prices in the Portuguese region falling by 2.7 per cent compared with last year, helping it climb from third place to the top of the rankings.Bulgaria’s Sunny Beach was the second-cheapest destination, with average costs of £142, followed by Lanzarote’s Costa Teguise at £147.Holidaymakers can visit stunning beaches in the Algarve | GETTY Spain dominated the rankings, claiming six of the top 10 places, while Turkey and Cyprus also featured among the best-value destinations for families looking to keep holiday spending under control.Head of Post Office Travel Money, Laura Plunkett, said: “For those families who haven’t already booked and are looking for a late deal, the low resort prices in Portugal and Spain make these countries great value for money, while Bulgaria’s Black Sea resorts are strong contenders too.”The report found the widest price difference was between the Algarve and Italy’s Sorrento, the most expensive destination surveyed. The same basket of items cost £268 in Sorrento – almost double the Algarve total – with much of the gap driven by restaurant prices. A family evening meal with drinks was priced at £150 in the Italian resort, compared with £78 in the Algarve.Top 10 best-value family holiday destinationsAlgarveSunny BeachLanzarote (Costa Teguise)MenorcaCosta BravaTenerifeMarmarisCosta del SolCosta BlancaPaphosThe findings come as three in five families said they plan to travel overseas during the summer holidays, although 85 per cent admitted they exceeded their budget on their last trip abroad.Lanzarote has sunny days and great value | GETTYSpain’s Menorca is another option for families | GETTYCommercial director at TUI UK & Ireland, Chris Logan, said: “We’ve seen particularly strong demand for popular Western Mediterranean destinations, with holidaymakers continuing to choose trusted, well-established resorts that offer a familiar holiday experience.“However, Cyprus and Turkey remain very popular, particularly with families, thanks to their strong mix of quality and value, plus there is still good availability for this summer, including our owned hotel products such as TUI BLUE and Holiday Village.“Families can still secure a great deal for this summer, including free kids’ places, with both destinations continuing to offer excellent value for money. It’s also encouraging to see confidence following a brief period of uncertainty.”