DO YOU KNOW WHERE EUROPE’S MOST EXPENSIVE HOTELS AND RESTAURANTS ARE?

Europe is home to some of the world’s most famous tourist destinations, but staying on the continent often comes with a high price tag. As a result, travellers are increasingly comparing costs when planning their trips. One useful reference is Eurostat’s Price Level Index for restaurants and hotels.

The European Union average is set at 100. This means that if restaurants and hotels across the EU cost an average of 100 euros, the index shows how much the same basket of services would cost in each individual country. A value above 100 indicates prices higher than the EU average, while a value below 100 points to lower prices. It is an index rather than a real monetary amount and serves solely as a comparative indicator, Euronews reports.

According to the latest Eurostat data, Switzerland is the most expensive country for restaurants and hotels among 37 European countries, while North Macedonia is the cheapest

A standard basket of these services in Switzerland costs 171 euros, which is 71 percent above the EU average. North Macedonia ranks as the most affordable destination, with prices around 50 percent below the EU average, or roughly 50 euros.

Eurostat data also show that Montenegro is well below the EU average, at 66 percent, while in Bosnia and Herzegovina the standard basket of restaurant and hotel services costs around 75 euros.

Denmark the Most Expensive EU Member, Bulgaria the Cheapest

Among EU member states, Denmark is the most expensive when it comes to restaurants and hotels. The standard basket there costs 148 euros, or 48 percent above the EU average. Bulgaria, on the other hand, is the cheapest EU member state, with a total basket cost of 53 euros.

Croatia is slightly below the EU average, at 95 percent. Countries with even cheaper meals and accommodation include Poland (92%), Slovakia (91%), Slovenia (90%), Greece (86%), Spain (84%), Portugal (76%), Bosnia and Herzegovina (75%), the Czech Republic (74%), Hungary (72%) and Serbia (68%).

Significant regional differences are also evident. Nordic countries are generally the most expensive for restaurants and hotels, while Western European countries tend to be at or above the EU average.

Ireland, the Netherlands, Belgium, Germany and France are at or above the EU reference value of 100 euros. In contrast, Eastern Europe and the Balkans remain well below the EU average.

Explaining the price gaps, Kristóf Gyódi of the University of Warsaw points out that labour costs play a key role. Speaking to Euronews Business, he noted that since the hospitality sector is highly labour-intensive, differences in wage levels across countries are directly reflected in service prices. Additional factors include variations in energy and utility costs, VAT and other taxes, as well as commercial property prices.

Value for Money Matters Most

Eurostat’s Price Level Index does not measure affordability, as it does not take income levels into account. As a result, people with higher disposable incomes can still afford more restaurant and hotel services in their home countries, even when prices are nominally higher.

These differences become particularly important when travelling. Citizens of higher-income countries can often enjoy lower prices when visiting other parts of Europe, for example when tourists from Nordic countries travel to Eastern Europe or certain parts of Southern Europe.

Ultimately, as emphasised by the hospitality association HOTREC, what matters most to travellers is value for money. When prices rise faster than purchasing power, people tend to shorten their stays, travel outside the peak season, or choose destinations they perceive as more affordable.