Planning a trip to Europe in 2026? Your travel budget may stretch much further or disappear much faster depending on where you go. A recent analysis highlighted by Euronews, using data from Eurostat, reveals major price differences across the continent for hotels and restaurants.
From iconic city escapes to Mediterranean beach vacations, Europe offers something for every traveler. But the cost of accommodations and dining can vary dramatically between destinations, from luxury-level prices in some countries to impressive bargains in others.
Here’s what travelers should know before booking their next European adventure.
Understanding Europe’s Hotel and Restaurant Price Index
Eurostat measures price differences across Europe using a price level index for restaurants and hotels in 37 countries.
The system works like this:
- EU average = 100
- Above 100 means more expensive than the EU average
- Below 100 means cheaper than the EU average
The index does not represent a specific hotel rate or restaurant bill. Instead, it compares the cost of a typical “basket” of hospitality services such as meals and overnight stays between countries.
This makes it a useful benchmark for travelers trying to identify budget-friendly destinations or prepare for higher travel costs.
The Most Expensive Country in Europe for Hotels and Dining
According to the latest data, Switzerland ranks as the most expensive destination in Europe for hotels and restaurants.
Prices there sit 71% above the EU average, meaning the typical hospitality basket costs about €171 compared with €100 across the EU.
Travelers visiting cities like Zurich or Geneva can expect premium pricing when booking accommodations or dining out.
Within the European Union itself, Denmark holds the title of most expensive EU country for restaurants and hotels, with prices about 48% higher than the EU average.
This makes cities such as Copenhagen among the pricier stops on a European itinerary.
Europe’s Cheapest Destinations for Travelers
At the other end of the spectrum, North Macedonia offers the lowest hotel and restaurant prices in Europe.
According to Eurostat’s index, hospitality services there cost about 50% less than the EU average, with the standard basket totaling roughly €50.
The capital, Skopje, has become an increasingly popular destination for travelers looking to explore Europe while keeping costs low.
Among EU member states, Bulgaria is the cheapest option, with prices around €53 on the index scale. Cities like Sofia and Plovdiv offer relatively affordable accommodations and dining compared with much of Western Europe.
Regional Travel Price Trends Across Europe
The study also highlights clear geographic patterns in hospitality costs.
Northern Europe tends to be the most expensive region. Countries in this area, including Denmark and its Nordic neighbors, often have higher wages and operating costs which translate into higher hotel and restaurant prices.
Western Europe generally sits close to or above the EU average. Countries like Ireland, Netherlands, Belgium, Germany and France cluster around the €100 benchmark.
Meanwhile, Eastern Europe and the Balkans remain significantly cheaper for travelers, offering strong value for accommodations and dining.
In Southern Europe, popular destinations like Portugal, Spain and Greece are generally cheaper than the EU average, making them attractive options for Mediterranean vacations.
However, Italy stands out as somewhat more expensive than many of its southern neighbors.
Why Hospitality Prices Differ Across Europe
One major factor behind these price differences is labor costs, according to research cited by Euronews from the University of Warsaw.
Because hotels and restaurants rely heavily on staff, countries with higher wages often see higher prices for travelers. Other contributors include:
- Energy and utility costs
- VAT and local taxes
- Commercial real estate prices
- Tourism demand in major destinations
Together, these factors create the wide price variations travelers see across the continent.
Travel Tip for Budget-Friendly European Trips
If you’re planning a European trip in 2026, choosing the right destination can make a big difference to your travel budget.
Travelers looking for luxury experiences might enjoy Switzerland or Denmark, but those hoping to save money without sacrificing great experiences may find better value in countries like North Macedonia or Bulgaria.
The key takeaway is simple: Europe offers both premium and budget-friendly destinations. You just need to know where to look.
Source: Reporting by Euronews (Servet Yanatma) based on Eurostat price level index data.