Research has revealed that a London staycation is 25 per cent more expensive than the average beach holiday abroad.
But out of the half of Brits (54 per cent) choosing to stay in the UK this summer, 26 per cent are doing so because they feel it is a cheaper option than heading tothe sun.
The cost of a week in London will set Brits back £1,631, compared to an average £1,298 for a sun, sea and sand holiday overseas.
The M&S Money research, which compared the cost of a week in nine popular beach holiday destinations against a week in London, found that Alicante in Spain offers the best value at £927 for a week. All other locations making up the top five were also within Europe.
The ten destinations in order of descending value
Alicante, Spain - £927
Marseille, France – £1,059
Gouves, Crete - £1,061
Bodrum, Turkey - £1,102
Faro, Portugal - £1,104
Split, Croatia - £1,133
Hua Hin, Thailand - £1,422
London, UK - £1,631
Bridgetown, Barbados - £1,836
Daytona Beach, Florida, USA - £2,034
Split in Croatia and Hua Hin in Thailand are also among the more expensive holidays, but require the least spending money to cover eating out and activities at £299 and £320 per person per week respectively.
A UK holiday is eighth on the list, at £1,631, due to relatively high accommodation costs and the large amount of spending money needed; just under £600 (£596) for a week, which accounts for 37 per cent of the entire cost of this holiday.
The M&S survey of more than 2,000 adults taking a holiday this summer, shows holidaymakers are budgeting an average of £41 spending money per person per day, or £287 per week. However, for the ten holidays studied, people are underestimating the amount of spending money needed per person by an average of £50, with holidaymakers budgeting £318 per week, compared to the £368 required.
Just over half (54 per cent) of Brits have chosen to stay in the UK this summer, with 21 per cent opting for a seaside holiday, 17 per cent staying at home and taking day trips and 16 per cent taking a non-beach UK holiday.
A quarter of those (26 per cent) staying in the UK are doing so because they felt it would be more affordable and eight per cent said they wanted to stay in the country because of the Jubilee and Olympics.
Jane Lawson of M&S Money, said: “Staycations are clearly popular this year, but with the cost of activities and eating out in the UK relatively high and favourable foreign exchange rates helping to make your money go further abroad, a holiday at home is not always the most affordable option.
“To get the most from your holiday budget, no matter what the destination, it’s important to plan ahead. As well as looking for good deals on travel and accommodation, thinking about exchange rates, local costs and the kind of extras you will need to spend your money on will help to ensure you have the best possible holiday experience.”