All-inclusive holiday deals 'can save families up to £500'

UK families can save up to £500 on a European all-inclusive holiday if they stick to what is included in their package, according to new research.

Frugal travellers who only eat and drink what is provided in such deals can save 27% in the Turkish resort of Marmaris, compared with paying for accommodation and meals separately, Post Office Travel Money said.

Savings available at other popular destinations include 24% at Majorca, Spain; 21% at Crete, Greece; and 9% at Sunny Beach, Bulgaria.

But around two-thirds (64%) of people who book this type of short-haul trip spend money in local bars and restaurants, which could make it a pricier option than bed and breakfast holidays with meals and drinks added, the study found.

The average amount spent outside all-inclusive hotels by UK travellers on European breaks is £271, with eating out, ice cream and bottled water among the most common purchases, according to the research.

Andrew Brown of Post Office Travel Money said: "All-inclusive holidays are becoming increasingly popular with families because of the potential to control spending.

"In fact our research shows that 11% of families travelling abroad this year will be taking an all-inclusive holiday for the first time. However, holidaymakers should also be aware our report reveals that spending on top of paid-for packages is on the increase.

"Since most families will pay for extras on their all-inclusive holidays, it is important to carry enough foreign cash to the cover all eventualities."