2 February 2015 by Lowenna Waters
The pound sterling has hit a seven-year high against the euro, which is great news for British travellers who could look to save hundreds of pounds on trips within Europe.
The pound has risen to 1.34 against the euro - a 30 per cent improvement on its highpoint in 2009. A euro is now worth just over 78 pence, compared with almost 84 pence in March.
This means that British travellers are set to save anything between 5 - 15 per cent on travel and accommodation, and pay 20 per cent less on expenses like eating out.
In real terms, this adds up to some excellent savings on top European destinations. Renting a four-bed farmhouse in Spain is £158 cheaper than this time last year, and you could shave £100 off a large villa in Tuscany.
According to the Post Office Money, the best-value destinations this year are Prague in the Czech Republic, the Algarve in Portugal, Sunny Beach in Bulgaria and the Costa del Sol in Spain.
However, there are a number of things you can do to make the most of your extra holiday funds. Don't just stick to eurozone destinations. The pound is worth 30 per cent more against the Turkish lire, and living costs in Turkey are low. Take our Marvels of Turkey tour, or try the Istanbul Explorer.
The pound is also on a six-year high against both the Canadian and Australian dollars. Why not try one of our Taste of Australia tours to explore the country at unprecedented value or take a winter sports break in the Yukon or Alberta.
In terms of booking within Europe, there's no way of telling exactly when to book. According to Nick Trend, writing in The Telegraph, it's probably safest to book now for peak summer weeks and weekend breaks, but wait until two or three months before departure for holidays at less busy times.
He also advises not buying up your currency now, but waiting until just before you travel, because you can shop around for the best rates then.