Shop smart in foreign supermarkets - picture by Flickr user Polycart

Self catering holidays in Spain and Portugal can cost around 80% less than those in Italy, Greece and Cyprus, according to a Post Office survey.

Food shopping in the countries appears to be the significant difference in expenditure, with supermarkets in Italy, Crete, Corfu and Cyprus more expensive than those in Portugal and Majorca.

Over 15% of those surveyed said they decided on self catering holidays to save more money, yet many still went over their budget on food purchases, highlighting a need to consider local prices when booking a holiday.

The Post Office Travel Money Worldwide Costs Barometer found that on average a bottle of local beer in Portugal cost £1.36 whereas in Italy it cost £2.27. Even going out for dinner was cheaper, with the average evening meal for 2 adults with a bottle of house wine costing £22.73 in Spain, £45.45 in Greece.

Andrew Brown, Post Office head of Travel Money, said: “Although self-catering can be a great way for families to save money, they should choose their destination carefully. Majorca and Portugal are great value options but Greece is looking more expensive.”

He went on to advise that travellers should avoid changing cash at an airport or overseas ATMs as poor exchange rates and charges will cost their budget dearly.

For good quality self catering accommodation, wherever you decide to go, look at Villaseek and for holidays closer to home in the UK, Holiday Cottages.