The pound will now buy British tourists 1.40 euros for the first time since December 2007.
UK holidaymakers will have just over 15 per cent more spending money in the eurozone compared to last year.
Experts say fears over Greece's position in the eurozone is continuing to put pressure on the euro.
The Daily Telegraph reports that Unicredit and Nordea analysts predict the pound could climb to €1.45 by the end of the year.
According to the BBC, the pound was trading at €1.205 last year, meaning Brits could expect €1.18 for every pound they exchanged. They were receiving €707 for every £600 they exchanged, but today they will get €822.
BT.com reports that the pound is also faring well against Eastern European currencies, such as the Polish zloty, Bulgarian lev and Romanian lev. Meanwhile, the US dollar is strengthening against the pound. Last year, one pound would buy you $1.66, compared to $1.50 today.
Skiers in Europe can also benefit from low costs in world-class French resorts this spring thanks to the strong pound. Heavy snowfall in recent weeks has provided an added incentive to plan an Easter ski holiday. Post Office Travel research has found that the biggest savings can be made in Courchevel, Val d'Isere and Les Deux Alps.
For people buying holiday homes in eurozone countries, France, Italy and Portugal, the difference will save you thousands of pounds.