Stronger pound paves the way for bargain trips

Holidaymakers booking a new year winter sun trip could grab a bargain due to the strengthening of the pound, research shows.

A range of popular destinations are more affordable than the same time last year due to favourable exchange rates for most long-haul holiday currencies, Post Office Travel Money said.

The biggest sterling growth was in Punta Cana in the Dominican Republic, where UK tourists will have 14 per cent more travel cash to spend.

The US dollar has dipped in value and so have currencies linked to it, giving holidaymakers 10 per cent more cash on trips to the US, the Caribbean and Dubai.

But eurozone locations still offer the cheapest overall deals as the lower travel costs outweigh the weakening of the pound against the euro by 3 per cent.