Where to find Europe’s cheapest city breaks this year

Eastern Europe continues to dominate the list of affordable European cities for a short break in 2025, according to the latest Post Office Travel Money City Costs Barometer.

However, there are some easy swaps of popular Western European and Nordic cities that now offer significant savings, too.

The Post Office report assesses a typical basket of holiday costs – including a glass of wine, two nights in three-star accommodation, airport transfers, and a museum visit – in 38 cities to produce the ranking. This year, seven Eastern European cities feature in the top 10.

Elsewhere, Portugal now offers better value city breaks than neighbouring Spain while Montenegro’s capital is significantly cheaper than Dubrovnik in Croatia. And Helsinki offers great value when compared to other Nordic capitals.

The Baltics offer Europe’s cheapest city breaks

Latvian capital Riga has reclaimed its title as Europe’s best value city after more than a decade. Prices in the city have reduced by 15 per cent since 2024, meaning holidaymakers will get more for their money here.

Many of the Latvian capital’s restaurants serve traditional Baltic cuisine that showcases local produce, such as the national dish of a heartwarming stew made from fresh peas and bacon. A three-course meal for two accompanied with wine costs an average £66 in Riga.

Riga is followed by last year’s cheapest city Vilnius. The Lithuanian capital has seen accommodation costs rise since last year, but prices otherwise remain low – than Warsaw, Podgorica and Lisbon.

British travellers will find Western Europe’s cheapest city breaks in Portugal, with Lisbon taking fifth spot in the ranking and Porto ninth. Two Spanish cities make the list: Madrid, in 25th position, and Barcelona in 30th.

The report highlights that holidaymakers can enjoy a three-course meal for two, with wine, for less than £50 in the Portuguese capital. As an example, A Nossa Casa – a modern, intimate Portuguese-Brazilian restaurant in Bairro Alto – has main courses such as smoked octopus with sweet potato, for around £15.

Where to find value in the Nordics

Oslo takes the top spot for the most expensive city break in Europe this year – it is 153 per cent more expensive than a short break in Riga. This follows an increase of 13 per cent on the average holiday basket since 2024, which has jumped from £564.59 to £636.20. Copenhagen, Edinburgh, Venice and Berlin complete the top five most expensive cities.

Post Office researchers found costs have fallen in half of the cities surveyed a year ago. The biggest drop has been in Helsinki, with an overall 20 per cent change, and a 39 per cent drop in accommodation costs since last year.

The Finnish capital’s value is noticeable in comparison to Copenhagen, which has seen a 67 per cent increase in the cost for two nights in a three-star hotel. For locals, the average rent in Copenhagen is 64 per cent higher than in Helsinki, according to cost of living database, Numbeo.

Bunkers on Suomenlinna (Photo: Alexander Spatari/Getty)

Travellers visiting Helsinki will spend an average of £188 for a weekend stay at a three-star hotel, according to Booking.com. For just £7 visitors can buy a return ferry ticket to explore the Unesco-listed Suomenlinna sea fortress. Once used to protect what was then Sweden, Russia and now Finland, today the island is home to 800 residents.

Costing €18, Furuvik Seaside Sauna offers visitors the opportunity to try the Finnish tradition in a secluded bay – a cheaper, quieter alternative to the capital’s landmark public sauna, Löyly (€26).

A cost-saving swap for Dubrovnik

Another cost-saving city swap is a newcomer to the Post Office report, Podgorica, Montenegro’s capital. Ranking fourth for value, the city has Ottoman Empire heritage, surrounding vineyards and a Mediterranean climate, and offers a cheaper experience for visitors than neighbouring Dubrovnik in Croatia, which ranks 18th on the list.

Podgorica is bisected by the Moraca river (Photo: Leonid Andronov/Getty)

Visitors keen to explore Dubrovnik’s art galleries, museums and heritage attractions will spend an average £57; in Podgorica, these attractions are free.

A city unexpectedly proud of its coffee, Podgorica’s cafes charge an average £1.75 compared to £3.24 in the Croatian city.

While not on the coast like Dubrovnik, Podgorica is just over half an hour’s drive from freshwater beaches on Lake Skadar and around the same again to Mogren beach on the Adriatic by Budva’s Old Town.

Hotel supply affects Athens and Amsterdam

The report highlights accommodation costs as steering the more significant changes since 2024. A decreasing number of three-star hotels has created a vacuum that is being filled by increasingly expensive two-star properties.

This is most prevalent in Athens – where accommodation costs have risen by 24 per cent – and Berlin, with an increase of 28 per cent.

However, an increase in supply has seen prices fall in 20 cities, most notably Amsterdam, which has seen prices fall by 29 per cent compared to 2023.

Amsterdam is celebrating its 750th anniversary in 2025 (Photo: Milos Ruzicka/Getty)

According to Kayak.com, a two-night stay at a three-star hotel here will cost £303.40. The city has timely relevance as 2025 marks the city’s 750th anniversary, with a year-long event schedule leading up to its actual birthday of 27 October.

Laura Plunkett, head of travel money at Post Office, the UK’s largest provider of foreign currency, said: “Although city break holidaymakers need to keep a watchful eye on exchange rates, the real challenge will be the cost of accommodation in the cities Britons are considering.

“Successive City Costs Barometers have found big swings in hotel costs depending on how many rooms are available in peak months. This year is no different and rising – or falling – hotel prices can have a big impact on city break costs.”