The hidden cost of all-inclusive holidays

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If you think you're saving money by booking an all-inclusive holiday, then you could be in for a shock.

New research from the Post Office has found that four out of five families - 4.1 million people a year - end up paying extra for things they had expected to be covered.

One in five holidaymakers pays extra for food to avoid eating at the hotel buffet every night, and this along with drinks, water sports and internet access means that you could end up spending an extra £300 or more on a week's holiday.

All-inclusive holidaymakers could also expect to pay an extra £14 for a bottle of wine and at least £27 per person to have a cocktail every day.

And as almost half of holidaymakers (48 per cent) pay on plastic instead of taking foreign currency to cover extras, they are also being hit by bank fees and commission charges.

Sarah Munro, Post Office head of travel money said: "Although it is perfectly possible to stick to all-inclusive deals, our research found that in practice only one in five holidaymakers actually spent nothing extra on their trip.

"Our research made it clear that holidaymakers expected food and drinks to be included but in many cases packages only covered basics like buffet food and local drinks.

"Two-thirds of the hotels surveyed excluded a la carte meals and well over half did not include cocktails, bottles of wine and branded alcoholic drinks."

She added: "The best advice is to check the small print carefully before booking to see what is included and make sure you carry enough foreign cash to pay for extras."

If you can't afford a family holiday this year, then click on the image below to find out about the best budget days out for kids in the UK...

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