A week-long holiday in Spain is £500 more expensive now than last year, according to an exchange rate company.

Research by Eurochange factored in costs of hotels, food, car hire, and the Euro. The price hike has been attributed to inflation and many businesses trying to make up for losses made during the Covid pandemic.

Tourists have been warned that they should be aware of the risk of overspending on their budgets if they don’t take into account the higher average cost, which does not include flights.

The cost of car hire has more than doubled since last year, figures suggest. Prices have risen by 136 per cent, with the typical cost of a week’s rental now about £609, or £52 a day.

The sum is based on rates provided by Sixt, Hertz, Avis, Budget, Enterprise and Europcar. Tourists hiring the same rental in 2021 would have had to fork out just £258 for a week.

The report suggests that hotel costs per night in the Mediterranean favourite have increased by 36 per cent over the last year.

Last year, one room cost £62 for a night. If travellers booked the same room now they would have to pay £84, or £504 for six nights.

Meanwhile eating at restaurants was found to be 9 per cent more expensive. A dinner that would have cost £17.50 in 2021 is now priced at about £19. The rise has been linked to inflation and the higher cost of food in general.

Exchange rates on the Euro have dropped as much as 13 per cent, according to the exchange bureau, and its likely that the falling value of the pound would make the cost of a holiday to Europe even higher.

In September last year, £1 would have bought €1.165. Over the year, the sterling’s purchasing power dropped to €1.143, Eurochange’s report found.

Now the value of the pound has continued to plummet further – with £1 equivalent to €1.107 at the time of writing.

Charles Stewart, Eurochange’s managing director, said: “Preparation is key when it comes to cutting costs, as there are many package holidays and budget flights available if you research.

“Holidaymakers can also save by avoiding hiring a car, as it’s a large expense that’s more than doubled in the last year.

“It’s also key to keep an eye on exchange rates and seek out the best deals, to make sure your cash goes as far as it can whilst abroad.

“If possible, make sure to take more money away with you than you previously would have done to make up for the drop in rates.”

Read Simon Calder’s guide to how to stretch your holiday money further when faced with current exchange rates.

Read More