Holiday costs in eurozone countries are looking significantly cheaper this year . On Friday , the pound was worth €1.38 – which for British holidaymakers heading to , say , France , Spain , Italy and Greece is the most favourable rate for more than seven years . It ’ s around 14 per cent better than this time last year , and 20 per cent better than five years ago . Holidaymakers booking a village in the South of France can save more than £200 compared with last year . Put more graphically , if that villa in the South of France you ’ re looking at costs €2,000 ( £1,450 ) a week to rent , it ’ s £231 cheaper than it was in 2014 and £353 cheaper than in 2010 . Likewise , a meal for two in Venice with a €100 ( £72 ) price tag costs roughly £12 less than this time last year , and £18 less than in 2010 . Here are some issues that the better pound/euro exchange rate raises – but remember that if you use cards to get cash out of overseas ATMs , settle hotel and restaurant bills and make purchases , the actual exchange rate won ’ t be quite as good , due to the banks taking commission . Holidaymakers may get a better deal by booking direct , in euros , as most prices were fixed last year . Book direct ? Most holiday companies will have fixed their prices with hoteliers and villa owners last year , when the pound was weaker against the euro . This means you may well get a better deal by booking direct , in euros . That said , I know of a number of operators and villa agencies that have recently lowered prices to take into account the better exchange rate , and tailor-made arrangements may be based on current exchange rates . So it ’ s worth doing DIY vs package price comparisons . Also bear in mind that you get better financial protection and back-up when you book a package . If you do book direct , to be sure of benefiting from the current good exchange rate , you need to pay in full now rather than putting down a deposit or paying on arrival/departure . The rate may be even better in a few months ’ time , but of course it may have worsened . You could hedge your bets by obtaining some ( but not all ) of your spending money now . Buy euros now ? The pound was worth about €1.40 a week ago , but by Friday it had fallen slightly . No one knows what it will do next , so if you buy euros now , you ’ re taking a gamble . But you could hedge your bets by obtaining some ( but not all ) of your spending money now . Consider doing so with a pre-paid euro currency card – the exchange rate used will be whatever it is on the day you upload the funds . The Ukash Travel Money MasterCard ( ukash.com ) has very competitive exchange rates and charges no fees for making purchases or cash withdrawals . A driving holiday on the Continent ? The combination of more favourable exchange rates and lower oil prices means that filling up the car in eurozone countries is costing British motorists a lot less than a year ago . According to a Post Office Travel Money report , when converted into pounds , the price of a litre of unleaded petrol in France , Italy , Spain , Germany and Austria is down year-on-year by at least 20 per cent . In many European countries , fuel is also markedly cheaper than in the UK – about 10p less per litre of unleaded in France than in the UK . Prague is an attractive destination for Britons as the Czech koruna has plummeted against sterling . Beyond the eurozone . Exchange rates have also improved significantly for British travellers heading to some European countries outside the eurozone . Notoriously expensive Scandinavia is looking more affordable . Compared with this time two years ago , the Norwegian krone and Swedish krona are about 25 per cent weaker against the pound . You might also want to consider a break to Prague : the Czech koruna has plummeted over 20 per cent against sterling since spring 2013 . But if you ’ re thinking of heading to the US this year , things are not looking so rosy . The strength of the US economy means that the pound is weaker against the dollar than at any time since June 2010 . Worth a paltry $ 1.47 on Friday , the pound has dropped by more than ten per cent from 12 months ago – bumping up accommodation and day-to-day costs . Bear in mind that it ’ s not just in the States where the strong dollar is making things pricier for British visitors . The same is true in other holiday spots where currencies are pegged to the US dollar , such as Barbados , St Lucia and Antigua in the Caribbean , and Dubai .
The pound 's value against the euro on Friday was strongest in seven years . The pound 's value of € 1.38 is 20 per cent better than this time last year . It means a villa in the south of France worth € 2,000 ( £ 1,450 ) is £ 231 cheaper . Compare DIY vs package prices to ensure you 're getting the best value . With the inflation rate and low oil prices , fill up the car for a short period .