Holidaymakers are increasingly looking outside of the eurozone to get better value for money on their currency and to stay at cheaper resorts, according to the Post Office.
The seventh annual Post Office Holiday Money Report has surveyed 42 destinations to identify likely holiday hotspots for 2013, and it seems cost is of paramount importance.
Mexico is in the destination list for the second year running, with Post Office saying its sales of Mexican pesos rose by a third in 2012, and by 200% over the past five years.
The research reveals that "growing numbers of bargain-hunting holidaymakers are choosing destinations where sterling is strong, resort prices are low and more flight routes have kept travel costs down".
But while Spain and Sri Lanka have tied as top cheapest destination for the year, it is expected that the likes of Vietnam and Croatia will continue to be popular as holidaygoers continue to look outside of the euro to exploit the strength of sterling.
More for your money
Andrew Brown, head of travel money at the Post Office, says: "There are growing signs that holidaymakers now check the value of sterling and the costs they face in overseas resorts before booking." He added that people are more likely to look at where their money will go furthest, including factors such as where food and drink will be cheaper.
Vitenam and Bali have overtaken Thailand to reach the top five value-for-money destinations, with Turkey returning to the top 10 after an average 16% fall in resort prices in the country.
Emerging destinations to look out for include Lithuania and Qatar.
|TOP 10 VALUE-FOR-MONEY DESTINATIONS||TOP 10 LEAST VALUE-FOR-MONEY DESTINATIONS|
|1. Spain||1. South Korea|
|2. Sri Lanka||2. Australia|
|3. Czech Republic||3. New Zealand|
|4. Bali||4. China|
|5. Vietnam||5. Canada|
|6. Bulgaria||6. Dubai|
|7. Portugal||7. Mauritius|
|8. Mexico||8. Singapore|
|9. Hungary||9. Jamaica|
|10. Turkey||10. St Lucia|
This article was written for our sister website Money Observer