Brits will flock to European resorts this year

Post Office Travel Money has predicted that 2012 will be a big year for European holiday resorts.

An improving exchange rate coupled with a wealth of budget options on the market is meaning that more and more Brits are deciding against long haul trips like Florida and Australia in favour of returning to previous favourites like Spain and the Greek Islands.

Sarah Munro, head of Post Office Travel Money, said: "It will be interesting to see how Turkish resorts respond to the challenge presented by Spain and Portugal.

"With Greek tourism also facing a fight for survival, we could see a price war between the eastern and western Med in 2012."

The recent Post Office Worldwide Holiday Costs Barometer found that Sri Lanka and Spain are the cheapest holiday resorts in the world in terms of everyday costs such as eating out and buying sunscreen.

On the Costa del Sol a three course meal (again including house wine) comes in at an average of just £22.73 per couple.

Posted by Emily Sanders