Europe is renowned for its world-famous cuisine, from France’s cheese boards to Italy’s pasta dishes, attracting millions of tourists each year. However, the cost of dining and accommodation varies widely across the continent, making careful planning essential for travellers.
Eurostat’s latest price level index for restaurants and hotels offers a benchmark to compare costs across countries. The EU average is set at 100, meaning that a score above 100 indicates higher-than-average prices, while a score below 100 suggests lower costs. The index does not reflect actual monetary amounts, serving instead as a comparative tool.
Among 37 European nations, Switzerland tops the list as the most expensive for hotels and restaurants, with a standard basket costing €171, 71 percent above the EU average. North Macedonia is the most affordable, with a basket priced at €50, about 50 percent below the average.
Within the EU, Denmark is the priciest country, with services costing €148, 48 percent above the benchmark. Bulgaria ranks as the cheapest EU destination, at €53 per standard basket. Nordic countries and much of Western Europe tend to be more expensive, with Ireland, the Netherlands, Belgium, Germany, and France all meeting or exceeding the €100 benchmark. Eastern Europe and the Balkans remain significantly below the EU average.
Southern Europe shows mixed results. Portugal, Spain, and Greece are noticeably cheaper than the average, while Italy is closer to the benchmark. Mediterranean countries such as Croatia hover near €100, and Cyprus and Malta are slightly lower but still costlier than comparable destinations.
Kristóf Gyódi, an economist at the University of Warsaw, attributed these differences largely to labour costs. “The hospitality sector is highly labour intensive, so differences in wage levels between countries directly influence service prices,” he said. Other factors include energy and utility costs, VAT, taxes, and commercial real estate prices.
The European hospitality association, HOTREC, also highlighted that food inflation, supply chain pressures, and regulatory requirements affect final prices. “Labour represents the largest share of hospitality costs, so countries with higher wages and stricter social contribution systems naturally rank higher in price comparisons,” a spokesperson said.
Eurostat’s index does not measure affordability, as it does not account for income levels. As a result, travellers from higher-income countries may find lower prices when visiting Eastern or Southern Europe, while residents of more expensive nations may experience cost pressures at home. HOTREC noted that rising prices relative to purchasing power can lead tourists to shorten stays, travel off-season, or choose destinations perceived as more affordable.
While price differences influence tourism, Gyódi said other factors also play a key role. Distance, ease of travel, and the appeal of specific attractions continue to shape where tourists choose to visit across Europe.
