HOLIDAYMAKERS heading to the continent will see their cash travel further after the pound hit a near four-year high against the battered euro.
The pound was worth 1.28 euro as currency markets continued to fret over the ongoing eurozone debt crisis and whether or not Spain will need its own bail-out package.
Some 2m British holidaymakers were set to head overseas this weekend as most English schools break up for the summer holidays.
The exchange rate will see Britons receive 11.5% more value for their money compared with last year, the Association of British Travel Agents said.
This means British holidaymakers will pay just £1.55 for a beer in summer holiday favourite Spain, where the average lager costs 1.99 euro.
ABTA chief executive Mark Tanzer said: “Eurozone destinations are proving popular with holidaymakers looking to take advantage of the pound’s strengthening against the euro, coupled with the fact that many bars and restaurants have lowered their prices.”
The rate paid by Bureau de Change operator Travelex is slightly lower at 1.24 euro to the pound.
The single currency has weakened after Greece faced the prospect of a eurozone exit and investor fears pushed Spanish borrowing costs to unsustainable levels.
Eurozone finance ministers approved a bailout for Spanish banks, but the rescue deal requires the Spanish government to present by the end of this month plans to reduce its budget deficit to under 3% of the country’s gross domestic product by 2014.