Exchange rates over the past week have been hovering between €1.42 and €1.44 to the pound, which takes Sterling to highest rate since 2007 and up almost 13 percent on last summer.
The latest annual Family Holiday Report from Post Office Travel Money also revealed in last week that prices for UK holidaymakers have fallen across Europe, thanks largely to the powerful pound.
It explains that regions like the Algarve remain cheap places to eat out at under £30 for a meal for four with drinks.
While families on self-catering holidays or going all inclusive are less likely to fork out for resort meals, Post Office Travel says they are still likely to overspend.
Their research found that three-quarters of families bust their budget on their last trip abroad to the tune of £219 on average, despite slashing their spending budget by 16 per cent.
Giving in to kids’ pester power could account for the overspending as beach extras, water park visits, pedalo rides and ice creams cost them an average of well over £300.
Andrew Brown of Post Office Travel Money, offers some advice to British parents on how to get more from their pounds: “Our Beach Barometer reveals how paying for beach items can tip the family holiday budget into the red. Letting children rule the roost could wipe out the extra spending money that parents will have in their pockets this year, thanks to sterling’s gains against the euro and other European currencies.
“Another easy win is to buy currency before leaving home to avoid poor airport bureau rates. Plan how much you will need carefully and take enough foreign cash because changing money abroad is more expensive when bank charges are added.”
Current exchange rates mean that British holiday makers can change £500 for almost €700, which is up by around €80 on last year’s rate.
Research from M&S Bank, published last week, further substantiates this point and reveal that the cost of a family break in seven out of ten summer holiday destinations has fallen this year, with an average overall price decrease of four per cent.
Portugal was found to offer best overall value at £2,200 per family, with a break in Lisbon costing a family just under seven per cent or £152 less than in 2014 (£2,352).
Paul Stokes, head of products at M&S Bank, said: “The stronger pound against the euro, combined with the warm temperatures over the summer, make European destinations like Portugal ideal for families hoping to make the most of their holiday budgets.”
Despite overall holiday costs falling, the majority (57 per cent) of families said they will actually choose to spend more on their holiday this year than they did in 2014.