OK, Point taken about not having an interest in long haul, but having been in Spain last September (costa del sol) when the Northern Rock fiasco happened, which saw the rate plummet from 1.44 down to 1.36/1.37 overnight and started a chain reaction which coincidence or not, the rate has never recovered from since, and having been back to Spain at Christmas and Easter, (costa blanca) when the rate was 1.25 euros, I have seen no increase in the price of drinks/goods in the resorts, therefore I can't agree that the euro-zone has become expensive, or ridiculously expensive to drive people into taking long haul flights to avoid it. Two cups of coffee cost me the same last month as they did in September of last year.

The fact that you are getting less in the exchange process has had no effect on the prices that have remained unchanged since last September, but I will conclude by saying that it all depends on where you eat/drink, just the same as in the UK and it is mis-leading to suggest that prices have been hiked up in the resorts because from my experience, they haven't....and that's really the point I just want to make.

Prices in general have risen in Spain and this would have occurred with or without the pound falling against the euro, not that long ago a bottle of milk cost 0.42€, today it is 0.75€, diesel was 0.83€ and now it is 1.30€ and expected to hit 1.50€ at the pumps, electrity prices are to rise by 12% next month, so it's a natural process that these increases will eventually be passed on to the customers.

But at the moment, it would be business suicide to raise the prices,(if you can avoid it) when you know the people who you depend upon for keeping your business viable, are getting less euros this year for their currency than they did last year....and especially in the resorts that have a limited season and plenty of competition.
IMO: It's being over blown and the days of cheap sangria and comparing prices to the peseta days are long gone.
You might be getting fewer euros for your pound sterling, but the prices are still competitive against other countries in or out of the euro-zone.

Sanjiiiiiiiiiiiiiii