Cost of European Holidays Soars - LM Picks Unconventional Destinations for 2025

The cost of European package holidays has soared by up to 11.5% over the past year, according to new analysis.

Rising demand, increasing energy costs, and restrictions on airline capacity have all played a role in driving up prices, says consumer group Which?.

Among the destinations seeing the sharpest rise in costs are the Black Sea coast of Bulgaria, where the price of a week-long trip has jumped from £1,038 to £1,157 per person. This increase means that couples will need to pay an average of £238 more this year for their holiday.

Other popular destinations also experienced significant price hikes, including Italy (up 7.4%), Portugal (up 6.8%), and Cyprus (up 6.4%).

Overall, the average price rise across all locations has been 4.2%.

Rory Boland, editor of Which? Travel, commented: "Booking early is almost always your best chance of securing the best rate – so now is the best time to get the cheapest prices on summer holidays."

He added: "Take the time to shop around, and if you're holidaying with kids, consider travelling in the last week of the summer holidays, as we've previously found this can be the cheapest week in the peak season."

The Cheapest European Holidays: Unconventional Destinations for 2025

When most people think of European holidays, popular spots like Paris, Rome, and Barcelona come to mind. While these iconic cities offer unforgettable experiences, they often come with a hefty price tag. Fortunately, Europe is home to a wealth of lesser-known destinations that offer fantastic holidays at a fraction of the cost. Here are some of the best budget-friendly spots in Europe that you may not have considered for your next getaway.

Albania: Europe's Untapped Paradise

Albania is fast becoming one of Europe's most exciting budget destinations. With its pristine beaches along the Ionian and Adriatic Seas, charming coastal towns, and rugged mountains, Albania offers a unique experience at very affordable prices.

Best for: Adventurers, beach lovers, and nature enthusiasts.
Top destinations: Saranda, Ksamil, Berat, and the Llogara Pass.

Compared to neighbouring Greece and Italy, Albania offers similar stunning scenery and rich culture but at a fraction of the cost. Expect to find affordable accommodation, cheap meals, and unspoilt beaches that rival some of Europe’s most famous coastlines.

Prices:

• Coffee: £1.50
• Beer: £2.00
• Meal: £8.00 (for a simple local dish)

Romania: A Fairytale Landscape on a BudgetRomania often gets overshadowed by its more famous neighbours, but it’s a hidden treasure waiting to be explored. From the medieval charm of Transylvania to the scenic beauty of the Carpathian Mountains, Romania provides an affordable yet enchanting experience.

Best for: History lovers, nature lovers, and outdoor enthusiasts.
Top destinations: Bucharest, Brașov, Sibiu, and the Transfăgărășan Highway.

The cost of living in Romania is low, meaning your money will go much further. Explore fairytale castles like Bran Castle (famously linked to Dracula) or enjoy hikes through the Carpathians without spending a fortune.

Prices:

• Coffee: £1.50
• Beer: £2.20
• Meal: £6.00 (for a hearty traditional Romanian meal)

Portugal: A Budget-Friendly European Escape

While Lisbon and Porto are popular tourist spots, Portugal still remains one of the most affordable destinations in Western Europe. Head further south to the Algarve region, where you'll find beautiful beaches, charming villages, and excellent food—all at lower prices than you might expect in neighbouring Spain.

Best for: Sun lovers, beachgoers, and foodies.
Top destinations: Lagos, Tavira, Albufeira, and Faro.

The Algarve is a particularly budget-friendly choice, offering sunny weather and miles of coastline without the high price tag. Accommodations, food, and activities are all reasonably priced, making it a great value destination for those seeking a relaxed beach holiday.

Prices:

• Coffee: £1.60
• Beer: £2.50
• Meal: £9.00 (for a local seafood dish)

Poland: Vibrant Cities with Rich History

Poland is one of the most affordable countries in Europe, offering incredible value for money, especially in cities like Kraków, Gdańsk, and Wrocław. Poland is rich in culture, history, and natural beauty, and yet it remains one of Europe’s cheapest destinations.

Best for: History lovers, city explorers, and budget-conscious travellers.
Top destinations: Kraków, Warsaw, Gdańsk, Wrocław, Zakopane.

With a low cost of living, you can explore UNESCO-listed sites, dine out in local restaurants, and experience vibrant nightlife without breaking the bank. Plus, Poland’s mix of medieval architecture and modern attractions provides a diverse experience that appeals to all types of travellers.

Prices:

• Coffee: £1.40
• Beer: £2.00
• Meal: £7.00 (for a local Polish dish)

Slovakia: Nature, History, and Culture at Affordable Prices

Slovakia is another hidden gem in Central Europe that offers excellent value for money. Known for its medieval castles, picturesque towns, and stunning natural landscapes, Slovakia is a great choice for those wanting to experience authentic Europe without the high prices.

Best for: Nature lovers, hikers, and history enthusiasts.
Top destinations: Bratislava, High Tatras, Košice, and Spiš Castle.

With low accommodation costs and inexpensive meals, Slovakia is perfect for those who love outdoor activities like hiking or skiing. Its beautiful cities and towns are less crowded than those of its neighbours, providing a more authentic experience.

Prices:

• Coffee: £1.20
• Beer: £1.80
• Meal: £5.00 (for a simple traditional meal)

Serbia: A Budget-Friendly Destination with a Rich Culture

Serbia, tucked away in the heart of the Balkans, is a fantastic option for those seeking a cultural experience on a budget. Belgrade, Serbia’s capital, is known for its vibrant nightlife, historic sites, and unique atmosphere.

Best for: Nightlife lovers, history seekers, and cultural explorers.
Top destinations: Belgrade, Novi Sad, Niš, and Tara National Park.

Serbia is one of Europe’s best-kept secrets when it comes to value for money. Accommodation and meals are very affordable, and visitors can explore the country’s rich cultural scene, from ancient fortresses to modern art galleries.

Prices:

• Coffee: £1.40
• Beer: £2.00
• Meal: £6.50 (for a local Serbian dish)

Final Thoughts

Europe is a treasure trove of affordable, off-the-beaten-path destinations waiting to be discovered. Whether you're after sun and sea, culture and history, or nature and adventure, there are plenty of options that won’t drain your wallet. These lesser-known locations offer unique experiences, vibrant cultures, and stunning landscapes, all at a much lower price than the usual tourist hotspots.

Next time you plan a European escape, consider exploring one of these affordable alternatives—and you might just discover your new favourite destination.