With sterling strong against the euro and prices in popular destinations falling, now is a great time to book a European holiday, according to a new report from Post Office Travel Money.

UK tourists changing £500 into euros will gain an extra £52 extra compared to five years ago, and in some European countries the cost of items regularly bought in resorts has fallen by up to 50% in that time.

Those looking for a holiday further afield will find it harder to get such good value for money, however. Meal and drink costs in Thailand have jumped by 38% since 2009, while in Dubai, visitors can expect to pay 80% more.

Exchange rates for long-haul currencies are also far less favourable. People changing £500 into travel money for the US, the Caribbean, Dubai and Thailand will receive up to £39 less.

Andrew Brown of Post Office Travel Money said: “There is no doubt that UK tourists can look forward to getting more travel cash for their pound this year in Europe but people planning trips further afield could get caught out by falling rates for sterling in some countries.

“The best way to avoid this is to consider a resort where the pound still goes quite a long way, and check to see how prices for meals and drinks compare in a range of destinations.”