Save money - escape the euro-zone

Oh, for the days when there were nearer two euros to the pound (£1=1.6€, back in 2002), and our fellow members of the EU practically paid us to take a spur-of-the-moment trip.

But times have changed and now your pound buys just over one euro (1.09€ at the time of writing), which means your pound is worth around a third less in Europe.

However, it's not all bad travel news: more stable exchange rates in other regions mean it's now much better value to travel further afield.

Each year the Post Office runs a survey of travel costs around the world. In the latest report Helen Warburton, Post Office head of travel, said: 'Holidaymakers planning trips further afield this year will get excellent value for money by travelling to long-haul destinations. The pound is still strong against the US dollar.'

Close to home, Bulgaria is the cheapest holiday destination that's technically in Europe, followed by Turkey.

The other factor that we need to remember is the cost of living in a country. As Helen Warburton says: 'Looking forward, we believe that holidaymakers will be smarter about where they choose to go. Prices vary quite significantly within Europe so people will be looking to visit countries where a lower cost of living will offer them more for their pound, like Spain and Turkey.'

And, of course, one way to escape exchange-rate uncertainty is to stay in the UK! 

European countries in the eurozone

Austria
Belgium
Cyprus
Finland
France
Germany
Greece
Ireland
Italy
Luxembourg
Malta
Netherlands
Portugal
Slovakia
Slovenia
Spain

European countries outside the eurozone

Bulgaria - uses the lev. A beauty on the Balkan peninsula, which offers excellent value for money. www.bulgariatravel.org
Czech Republic - koruna, will adopt the euro at some point. Currently holding the presidency of the EU, and offering cheap beer and heaps of culture. www.czechtourism.com
Denmark - krone. Neat and clean with good design at its heart. www.visitdenmark.com
Estonia - kroon. Tiny country by the Baltic, with an accent on outdoor pursuits. www.visitestonia.com
Hungary - forint. Home to many heritage sites, and hot springs. www.hungarytourism.hu
Iceland - krona. Prices have dropped due to the global credit crunch, and a little trouble with Icelandic banks. Spectacular volcanic scenery and thermal springs. www.visiticeland.com
Latvia - lat. Impressive heritage sites and natural beauty. www.latviatourism.lv
Lithuania - litas. Small and mighty, with a chequered past. Fine architecture and natural wonders. www.visitlithuania.net
Poland - zloty. Head east for beautiful countryside, fine beaches and a low cost of living. www.poland.travel/en-gb
Romania - leu. Mediaeval towns, impressive architecture, the Danube and Transylvania. www.romaniatourism.com
Sweden - krona. Fresh air, fresh fish and fjord scenery. www.visitsweden.com
Turkey - lira. On the edge of Europe, but more exotic, with a low cost of living. www.tourismturkey.org

A few further-afield options
Sterling is holding up well against South Africa's rand (www.southafrica.net), and the country is in the same time zone as the UK.

Exotic Morocco (dirham; www.visitmorocco.com) is just eight miles from Spain's southern coast but a world apart culture-wise - with more power to your pound. Egypt (Egy[ptian pound; www.touregypt.net) is also proving popular

Thailand (baht) is a reasonably priced long-haul destination. www.tourismthailand.org

For up-to-the-minute exchange rates, see our currency converter