Bargains to be had as holiday costs plummet

Falling car hire and villa rental prices across Europe could convince more people to opt for self-catering holidays, a survey has suggested.

It is thought that because it can now cost up to 40% less to rent a car in some European destinations than it did two years ago, an increasing number of people will opt for self-catering holidays rather than expensive hotel breaks.

A study by TravelSupermarket revealed that car hire rates across popular European holiday destinations such as Malaga, Alicante, Murcia, Palma, Tenerife and Faro have fallen considerably since 2010, with bargains to be had this Easter, Whit week and in August.

Holidaymakers can save up to 26% on car hire during Whit week across eight European destinations, while prices have fallen by 34% in Spain since 2010. In Malaga, for example, it costs £63.89 to rent a small car for eight days, which equates to less than £8 per day.

Self-catering holidays in Greece could become considerably cheaper as villa rental prices could fall by as much as 20%.

Holidaymakers can save even more money by leaving the car at home prior to departure and taking a bus to the airport, before hiring a car when they get to their destination.

Experts say that prices have fallen considerably because people are booking their holidays later than usual to get the best deals and because of economic uncertainty in eurozone countries such as Spain, Portugal and Italy.

Copyright © Press Association 2012