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Despite the impact of the credit crunch on consumer finances and the effect of fuel costs on airfares, Brits are not reducing the amount they are spending on holidays, according to the Post Office.

The organisation's latest holiday money report concurs with the findings of recent studies by the BBC and the Confederation of British Industry – that holidays are one of the last luxuries to be sacrificed in times of financial difficulty.

Post Office sales of euros rose by 3.2% in June and July compared to 2007, despite its rising value against the pound, and the euro was the top selling currency in these months.

The US dollar was the second most popular, with sales up by 4.4% in June and July and 5% overall for the year to date.

Many countries are benefiting from a lower cost of living compared with resorts in the eurozone, with sales of Turkish lira rising by 22.9% in June and July and by 130% over the past three years.

Helen Warburton, head of travel for the Post Office, said: 'The continuing growth in demand for euros shows that most holidaymakers are not deserting summer sun favourites like Spain, Greece and France.

'However, accelerating sales of Turkish lira, Swiss francs and Croatian kuna suggest that many UK tourists are shopping around in Europe.'

According to Post Office statistics, Bulgaria is the cheapest European destination this year. The Bulgarian lev entered the list of top ten currencies for the first time this summer, while Scandinavian countries also saw strong demand.

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