Saxo’s Cost of Living travel guide: Best value holiday destinations for UK holidaymakers
Saxo Markets ranks Turkey as no.1 cheapest country among most popular locations despite inflation rising in country 343% year-on-year
Inflation has risen the most in Greece since this time last year - rising from 1% to 11.3%
Travel stocks have failed to take off in 2022 and are worst performing basket over past five years with holiday booking and cruise companies among the weakest stocks
The best value destinations for UK holidaymakers have been revealed, according to research from Saxo Markets, as the cost of living ramps up around the world.
Using a list of the UK’s most popular holiday destinations in 2022, released by ABTA (The Travel Association), the investment platform has found Turkey to be the most cost effective for visitors.
The study found that, despite the nation’s inflation rate increasing 343% over the past year, the popular travel location has the lowest costs for holiday essentials – with the Turkish lira now worth more than double against the pound compared to this time last year.
The average price of 12 large eggs across the nation has been recorded as £1.08, with a pint of beer from a local bar estimated to be around £1.66.
Petrol in Turkey is averaging 94p-per-litre - half the price as in the UK.
Other cheaper destinations on the list have been found to be Portugal, Spain and Germany, while the USA and Australia have been found to be the most expensive for spending.
Cost of Living Per Popular Holiday Destination
| Eggs (12 large) | Milk (1 litre) | Coca Cola (2 litre bottle) | Cappu- ccino (local cafe) | Beer (1 pint) | Dinner for two (averageItalian restaurant) | Petrol (per litre) | Exchange Rate | Ranking | |
|---|---|---|---|---|---|---|---|---|---|
| Turkey | £1.08 | £0.53 | £0.49 | £1.29 | £1.66 | £14.00 | £0.94 | 0.0474 GBP/TRY | 1 |
| Portugal | £2.10 | £0.69 | £1.74 | £2.28 | £1.57 | £34.00 | £1.65 | 0.866 GBP/EUR | 2 |
| Spain | £2.12 | £0.75 | £1.54 | £2.33 | £3.64 | £37.00 | £1.48 | 0.866 GBP/EUR | 3 |
| Germany | £2.75 | £0.90 | £1.58 | £2.69 | £3.42 | £43.00 | £1.61 | 0.866 GBP/EUR | 4 |
| Greece | £3.38 | £1.00 | £1.86 | £3.17 | £3.30 | £46.00 | £1.72 | 0.866 GBP/EUR | 5 |
| Italy | £2.96 | £1.14 | £1.55 | £1.44 | £4.39 | £56.00 | £1.58 | 0.866 GBP/EUR | 6 |
| France | £3.45 | £0.94 | £2.03 | £3.20 | £4.81 | £52.00 | £1.62 | 0.866 GBP/EUR | 7 |
| Canada | £3.02 | £1.87 | £1.62 | £3.20 | £4.77 | £63.00 | £1.12 | 0.632 GBP/CAD | 8 |
| USA | £2.78 | £0.81 | £1.88 | £4.25 | £5.09 | £69.00 | £0.92 | 0.820 GBP/USD | 9 |
| Australia | £3.43 | £0.91 | £1.74 | £2.75 | £5.57 | £60.00 | £1.09 | 0.565 GBP/AUD | 10 |
| UK | £2.73 | £0.91 | £1.97 | £3.16 | £5.07 | £60.00 | £1.79 |
Source: https://www.expatistan.com/cost-of-living/country/. Recorded on June 23
Inflation Rate Per Popular Holiday Destination
The inflation rate has grown the most in Greece over the past year, rising from 1% to 11.3% - an increase of 1,030%.
The UK’s inflation rate has risen 333% since May last year, going from 2.1% up to 9.1%.
This would put the UK above the likes of France, Germany and the USA, though below Italy and Portugal.
| May 2021 | May 2022 | % Increase | |
|---|---|---|---|
| Greece | 1.00% | 11.30% | 1030% |
| Portugal | 1.20% | 8.00% | 567% |
| Italy | 1.30% | 6.80% | 423% |
| Turkey | 16.59% | 73.50% | 343% |
| France | 1.40% | 5.20% | 271% |
| Spain | 2.70% | 8.70% | 222% |
| Germany | 2.50% | 7.90% | 216% |
| Canada | 3.60% | 7.70% | 114% |
| USA | 5.00% | 8.60% | 72% |
| Australia | 3.80% | 5.10% | 34% |
| UK | 2.10% | 9.10% | 333% |
Source: https://tradingeconomics.com/. Recorded on June 23
Travel stocks are worst performing over past five years and down in 2022
Saxo Market’s equity themed travel basket is the worst-performing basket over the past five years with the industry taking heavy losses through the Covid-19 pandemic.
In 2022, travel stocks have bounced back with the recommencement of holidays and flights, though like much of the market has still seen a downturn.
Holiday booking companies On The Beach and TUI as well as cruise companies Carnival and Royal Caribbean have been among the worst performing stocks since this time last year.
Saxo equity themes performance overview
Sorted by year-to-date return (%)
Source: Bloomberg and Saxo Group | Data collected 29-06-2022
| 1D | MTD | YTD | 1Y | 5Y | |
|---|---|---|---|---|---|
| Crypto & blockchain | -5.7 | -29.7 | -67.5 | -68.7 | NA |
| E-commerce | -4.3 | -9.8 | -51.5 | -67.0 | 71.2 |
| Bubble stocks | -3.9 | 1.6 | -45.5 | -60.6 | 422.8 |
| NextGen medicine | -3.5 | 8.6 | -35.0 | -48.5 | 407.7 |
| Payments | -3.4 | -14.7 | -34.4 | -48.5 | 96.7 |
| 3D Printing | -2.1 | -8.0 | -31.8 | -51.1 | -5.1 |
| Semiconductors | -0.9 | -10.7 | -30.9 | -19.7 | 193.7 |
| Green transformation | -3.2 | -0.3 | -28.1 | -40.9 | 364.7 |
| Energy storage | -1.1 | -2.4 | -26.1 | -22.5 | 648.2 |
| Financial trading | -1.3 | -7.2 | -25.2 | -21.3 | 125.9 |
| Cyber security | -3.1 | -3.2 | -24.3 | -17.1 | 192.0 |
| Gaming | -2.7 | -6.5 | -23.1 | -35.6 | 147.1 |
| Women in leadership | -1.2 | -5.9 | -22.1 | -22.7 | 125.7 |
| Mega Caps | -2.2 | -6.1 | -21.2 | -15.5 | 145.2 |
| MSCI World (USD) | -1.5 | -7.3 | -19.3 | -13.3 | 46.6 |
| China's little giants | 0.9 | 11.4 | -18.6 | -8.7 | 226.7 |
| Travel | 0.6 | -11.1 | -18.4 | -22.5 | -7.9 |
| MSCI EM (USD) | 0.3 | -4.1 | -15.4 | -23.5 | 14.1 |
| India (GDRs) | -1.2 | -4.0 | -13.1 | -10.2 | 68.9 |
| China consumer & technology | 1.2 | 12.8 | -11.5 | -28.8 | 170.6 |
| Logistics | -0.7 | -6.2 | -8.8 | -1.4 | 131.0 |
| Renewable energy | -1.2 | -2.2 | -5.8 | -1.3 | 463.4 |
| Defence | 1.1 | -1.6 | 14.0 | 11.7 | 61.6 |
| Commodities | 1.7 | -11.8 | 15.4 | 26.3 | 120.8 |
Source: Bloomberg and Saxo Group | Data collected 29-06-2022
On The Beach and Tui among worst performing travel stocks in 2022
Saxo’s Travel equity theme performance overview
Sorted by year-to-date return (%)
| 1D | MTD | YTD | 1Y | 5Y | |
| ON THE BEACH GROUP PLC | -3.8 | -24.6 | -50.2 | -59.1 | -62.0 |
| CARNIVAL CORP | -2.1 | -25.6 | -48.7 | -60.5 | -82.8 |
| ROYAL CARIBBEAN CRUISES LTD | -0.5 | -30.9 | -47.8 | -51.9 | -61.2 |
| EXPEDIA GROUP INC | -3.3 | -24.3 | -45.8 | -40.2 | -32.8 |
| TUI AG | -1.8 | -25.1 | -41.4 | -60.0 | -72.8 |
| AIRBNB INC-CLASS A | -3.9 | -19.3 | -41.4 | -35.0 | -30.0 |
| NORWEGIAN CRUISE LINE HOLDINGS | -0.9 | -20.3 | -38.5 | -56.2 | -76.9 |
| BOEING CO/THE | 0.0 | 5.6 | -31.1 | -42.2 | -26.2 |
| TRIPADVISOR INC | -2.3 | -23.9 | -30.6 | -53.3 | -44.3 |
| VAIL RESORTS INC | -1.9 | -9.0 | -29.5 | -27.9 | 22.0 |
| RYANAIR HOLDINGS PLC | -2.9 | -18.7 | -28.4 | -33.8 | -39.3 |
| SABRE CORP | -4.8 | -17.6 | -27.9 | -49.6 | -69.3 |
| AIRTRIP CORP | -2.2 | -15.4 | -26.8 | -25.1 | -26.0 |
| CHOICE HOTELS INTL INC | -1.2 | -10.3 | -26.2 | -1.6 | 82.3 |
| INTL CONSOLIDATED AIRLINE-DI | -0.2 | -11.4 | -26.2 | -41.9 | -68.0 |
| HILTON WORLDWIDE HOLDINGS IN | -1.5 | -18.2 | -26.0 | -4.4 | 85.9 |
| PARK HOTELS & RESORTS INC | -1.4 | -22.2 | -25.5 | -31.4 | -33.3 |
| TRAVEL + LEISURE CO | -0.6 | -18.7 | -24.3 | -27.8 | 4.9 |
| BOOKING HOLDINGS INC | -3.1 | -18.1 | -23.4 | -16.6 | -2.7 |
| DELTA AIR LINES INC | -0.4 | -27.3 | -22.4 | -29.7 | -39.5 |
| AIRBUS SE | 1.1 | -14.3 | -20.8 | -20.8 | 24.4 |
| WHITBREAD PLC | 1.7 | -6.0 | -19.5 | -24.1 | -21.7 |
| AMADEUS IT GROUP SA | 0.6 | -8.1 | -16.1 | -22.1 | -0.6 |
| MARRIOTT INTERNATIONAL -CL A | -1.1 | -19.2 | -15.9 | 2.3 | 41.3 |
| SOUTHWEST AIRLINES CO | -0.9 | -20.1 | -14.5 | -31.2 | -38.9 |
| INTERCONTINENTAL HOTELS GROU | 0.7 | -11.2 | -13.7 | -16.7 | 4.7 |
| AENA SME SA | -1.5 | -10.4 | -13.6 | -19.4 | -25.0 |
| ACCOR SA | 0.0 | -10.0 | -9.0 | -21.0 | -34.0 |
| HOST HOTELS & RESORTS INC | 0.7 | -19.3 | -7.1 | -4.7 | -0.9 |
| MAKEMYTRIP LTD | 0.8 | -5.2 | -5.4 | -15.9 | -20.7 |
| FLIGHT CENTRE TRAVEL GROUP L | -2.6 | -15.4 | -2.9 | 12.9 | -48.8 |
Source: Bloomberg and Saxo Group | Data collected 29-06-2022
Anaam Raza, of investment platforms Saxo Markets, said:
“The travel industry has faced a troublesome few years as uncertainty around lockdown restrictions and the implementation of new safety measures for Covid-19 have inevitably come at a cost - reflected in the basket’s poor stock market performance over the past five years.
“Now as the world somewhat returns to normal, travel companies are being inundated with bookings from those desperate to make up for lost time.
“The cost of living blues at home will also have had an effect on people’s willingness to get away and our research shows which countries may be the most cost-effective for those travelling abroad this summer during the ongoing cost of living crisis.
“Yet now travel companies face a different challenge in managing rising costs, with the potential of a recession at the end of the year set to have an impact on holiday bookings for 2023 as consumers begin to hold back on non-essential spending.
“For airlines, an increase in fuel prices and environmental charges will likely hit budget airlines, such as EasyJet and Ryanair, harder than others with prices for ‘cheap holidays’ likely to increase to help balance costs and lower demand.”
All trading carries risk. Any past performance stated is not an indication of future performance.
Saxo Bank connects people to investment opportunities in global capital markets. As a provider of multi-asset trading and investment, Saxo Bank strives to empower people with a user-friendly, seamless and personalised platform experience that gives them exactly what they need, when they need it, no matter if they want to actively trade global markets or invest into their future.
Founded in 1992, Saxo Bank was one of the first financial institutions to develop an online trading platform that provided private investors with the same tools and market access as professional traders, large institutions and fund managers. Saxo combines an agile fintech mindset with close to 30 years of experience and track record in global capital markets to deliver a state-of-the-art experience to clients. The Saxo Bank Group holds four banking licenses and is well regulated globally. Saxo offers clients around the world broad access to global capital markets across asset classes, where they can trade more than 40,000 instruments in over 20 languages from one single margin account. The Saxo Bank Group also powers more than 135 financial institutions as partners by boosting the investment experience they can offer their clients via its open banking technology.
Headquartered in Copenhagen, Saxo Bank’s client assets total more than 45 billion Euros and the company has more than 2,000 financial and technology professionals in financial centers around the world including London, Singapore, Amsterdam, Shanghai, Hong Kong, Paris, Zurich, Dubai and Tokyo.