Egypt has emerged as the top autumn bargain break sun destination during the October school half-term.

But Spain is losing out due to the weakness of sterling to the euro, according to The Co-operative Travel.

Half-term holidays to Sharm El Sheikh have increased by 142% according to data from the company based on more than 1,000 bookings.

The dramatic rise coincides with a significant fall in the cost of holidays to the Red Sea resort, with the average selling price for a family holiday dropping by 20.7% (from £2,394 to £1,898).

But the price of holidays to Tenerife, still the number one family destination, have risen by 14.7%.

The pound falling to a six-month low of 1.0628 euros to the pound may have also contributed to the shift in destination choice for families, with Spain in particular losing out, the study shows.

Majorca, the family favourite last year, has been knocked off the top spot into fourth place.

Retail distribution director Trevor Davis said: “Holiday destinations like Tenerife will always be popular in October as they offer good weather with relatively short flight times.

“However, there has been a shortage of late deals this year and with the euro still high, families are looking further afield for value for money.

“Resorts such as Sharm El Sheikh also benefit from having a large selection of all-inclusive hotels, so families can budget for their holiday before they travel.”

But he warned that the holiday industry must do more to help families wanting to travel further to find better deals.

“Our research shows that 82% of families stick to European destinations because they are worried about the complications of travelling with children and also because of family unfriendly practices like low baggage allowances that fail to account for the extra needs of family groups,” Davis said.

“We’ve made sure that families travelling with us will get a better service, extending free kids’ places and giving a 20kg luggage allowance (5kg more than the standard) on selected holidays. Our aim is to encourage parents to feel more comfortable taking children abroad and we hope the rest of the industry will follow our lead.”

The Co-operative Travel has also introduced Family Package Upgrades on selected holidays, where families can receive priority check in and boarding, with grouped seating guaranteed.

*Top 10 Family destinations for October half term with average selling price (ASP), departing in October Half Term S09 vs, S08. Prices are based on a booking of 2 adults and 1 child.

Top destination 2009 Family ASP 2009 Top destination 2008 Family ASP 2008
1 Tenerife £1,741 Majorca £1,066
2 Dalaman £1,141 Tenerife £1,517
3 Sharm El Sheikh £1,898 Dalaman £1,220
4 Majorca £1,137 Lanzarote £1,640
5 Lanzarote £1,517 Algarve £1,640
6 Larnarca £1,740 Costa Blanca £1,247
7 Costa Blanca £1,164 Paphos £1,873
8 Algarve £1,375 Larnarca £2,093
9 Costa Del Sol £1,456 Sharm El Sheikh £2,394
10 Crete £1,520 Fuerteventura £1,762

You can book your holidays online with Explorer Travel via their website (http://www.explorerdirect.co.uk). Remember to check both “packages” and “flights & hotels” to ensure you get the best value for money.