Holidays: is it cheaper to stay in the UK or go abroad?

If you're on a tight budget for your summer holidays, a new report has revealed that a staycation may be the more costly option.

Holiday company Thomas Cook has released its annual Holiday Cost of Living Report and the results are surprising.

Thomas Cook compared the prices of family holiday essentials in the UK with their cost across some of the world's most popular tourist spots such as Mexico, Spain and Tunisia.

The essentials included a three-course meal, glass of wine, bottle of beer, cup of coffee, can of Coke, bottle of water, daily newspaper and an ice cream.

The daily cost in the UK worked out at a shocking £34.85, while in Mexico the total came in at £18.85, a whopping £16 per day cheaper than the UK.

In the eurozone, prices proved cheaper than the UK alternatives with a bottle of beer costing £1.28 in Portugal and £3.50 in the UK.

Wine was just as expensive with a glass costing £1.45 in Portugal and a hefty £3.50 in the UK. If you indulged in a glass a day you'd add an extra £28.70 to a 14-night break in the UK.

The cheapest destination on Thomas Cook's list was Tunisia, where the items came in at £20.23, followed by mainland Spain at £20.61 and Turkey at £22.83.

The question is would you actually save any money in the end by counting the pennies daily abroad when you've splashed on the flight price to get there?

Joanna Wild, Retail Director at Thomas Cook UK & Ireland said: "What is clear is that an overseas holiday offers exceptional value for money, whatever board basis our customers choose, given that prices in many resorts abroad are considerably cheaper than in the UK.

"The key thing is to plan your money, so we recommend that customers speak to the experts in the Thomas Cook Travel Money team, who'll be able to offer some great rates as well as research your destination before you go."

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Are you heading abroad this summer or are you opting to save the flight money and stay at home?

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