Travel Money UK 2026 — Best Way to Get Currency, Exchange Rates and Holiday Budgets

How Much Travel Money Do I Need? — UK Guide by Destination

How much should you budget for daily spending on holiday? Here's a realistic guide by destination, holiday type, and what to plan for in 2026.

Knowing how much to budget for holiday spending is genuinely useful planning information — but every trip is different. Here are realistic daily spending estimates by destination and holiday type, along with a simple formula for calculating your total.

Daily Spending Estimates by Destination (2026, Per Person)

Destination Budget Mid-range Comfortable
Spain (Costa del Sol, Canaries) £25–£35 £40–£70 £80–£150
Greece (mainland + islands) £25–£40 £45–£75 £90–£160
Portugal (Algarve, Lisbon) £25–£35 £45–£70 £85–£150
France (Paris) £45–£70 £80–£120 £150–£250
Italy (Rome, Florence, Amalfi) £40–£65 £75–£110 £140–£220
Turkey £20–£30 £35–£60 £70–£130
USA (New York, Florida) £60–£90 £100–£160 £200–£400
Thailand £20–£35 £40–£65 £80–£140
Vietnam / Cambodia £15–£25 £30–£50 £60–£100
Dubai / UAE £60–£100 £120–£200 £250+
Japan £45–£70 £80–£120 £160–£250
Australia £65–£100 £110–£180 £220–£400

Estimates cover food, drinks, local transport, and basic activities. Excludes accommodation and flights (usually booked separately).

What These Estimates Include vs Exclude

Included:

  • Meals (breakfast, lunch, dinner — mid-range restaurants)
  • Local transport (buses, metro, taxis)
  • Drinks (including some alcoholic drinks at local prices)
  • Entry to 2–3 paid attractions per week
  • Miscellaneous (sunscreen, tips, small souvenirs)

Not included (budget separately):

  • Accommodation
  • Flights
  • Package holiday costs
  • Travel insurance
  • Expensive excursions or theme parks
  • Shopping and gifts

The Simple Budget Formula

Daily budget = food + drinks + transport + activities + misc Total spending money = daily budget × number of days × number of people Then add: Emergency fund (£100–£200 per person) + buffer (10–15% overage)

Example: Two people for 10 days in Spain at £45/day each: (£45 × 10 days × 2 people) = £900 + £200 emergency + 10% buffer = approximately £1,090

Seasonal Price Variation

Daily costs at the same destination can vary significantly depending on when you travel:

Destination Low season saving vs peak
Spanish Costas, Canary Islands 20–40% cheaper on food and activities outside July–August
Greek islands 15–30% cheaper May–June vs July–August
Thailand 10–20% cheaper April–October (wet season)
New York / USA 10–15% cheaper January–February vs summer/Christmas
Japan 15–25% cheaper outside cherry blossom (March–April) and autumn foliage (November)

Budget daily spending estimates assume mid-season travel. Add 15–25% if travelling peak season (school holidays, Christmas, New Year) to the same destinations.

Accommodation is the biggest seasonal cost, but food and tourist activities also price up significantly during peak times. Popular restaurants add surcharges, tourist sites are busier and sometimes more expensive, and popular excursions charge higher in-season rates.

Travelling with Children

Children’s costs vary significantly by age and destination:

Under 5s: Often free or half-price at tourist attractions, museums, and some transport options. Food costs are lower (small portions, kids menus). Budget roughly 30–50% of an adult’s daily rate for under-5s.

Ages 5–12: Many attractions offer child discounts (typically 50%). Budget 50–70% of adult daily rate.

Teenagers: Often adult pricing at most attractions. Budget similar to adult daily rate.

Family-specific costs to plan for:

  • Baby food, nappies, formula — buy locally (better value than bringing from UK)
  • Buggy hire if not taking your own
  • Child seat for hire cars
  • Extra luggage costs for baby equipment
  • Higher accommodation requirement (interconnecting rooms or larger apartments)

A family of four (two adults, two school-age children) in Spain at mid-range: budget £120–£160/day for food, activities, and incidentals — roughly 2.5x the adult estimate, not 4x.

Building in a Buffer and Tracking Exchange Rate Risk

Exchange rates move. Between booking a holiday and travelling, the pound-to-euro rate might shift by 3–5%. On a £1,000 spending budget, that’s a £30–£50 real-terms change.

To manage this:

  • Budget at a rate 5% below the current rate (gives a built-in buffer)
  • If exchanging cash in advance and rates improve before travel: you’re protected. If rates worsen: you’ve already secured the better rate.
  • For card spending (Starling/Monzo/Chase): you get the rate on the day of each transaction. No advance locking needed — but build a 5% buffer into your budget as a general cushion.

Tracking apps: Monzo and Starling both show your spending in real time and can display totals by category (food, transport, entertainment). Review each evening to stay on track. Starling allows you to create a “spending space” with a set budget and track against it.

How to Stretch Your Budget

  • Eat where locals eat — restaurants on main tourist squares cost 30–50% more
  • Use cards everywhere (with a fee-free travel card) — avoids poor cash exchange rates
  • Pre-book popular activities — often cheaper than on-the-door
  • Use local transport — day passes beat taxis on popular routes
  • Bring sunscreen and toiletries from the UK — airport and resort prices are inflated

Tracking Spend in Real Time

Fee-free travel cards (Starling, Monzo, Chase) send an instant notification for every purchase. This is the most practical way to stay on budget without manually tracking every transaction.

Set a daily spend target in your banking app and review each evening. If you’ve overspent one day, adjust the next.

For currency exchange, see Best Way to Exchange Currency UK and the Travel Money Guide UK.

Sources

  1. FCO — Foreign travel advice
  2. MoneyHelper — Budgeting for holidays