Europe is home to many of the world's most iconic tourist destinations, ranging from Lisbon's hilltop views to France's Tour Eiffel.
The cost of spending a night on the continent can, however, come with a hefty price tag — meaning travellers must look carefully when hunting for deals.
For those wanting to compare costs across countries, Eurostat’s price level index for restaurants and hotels can prove useful.
The EU average is set at 100. This means that if restaurants and hotels cost €100 on average in the EU, the index shows how much the same basket would cost in each country.
A score above 100 means a destination is more expensive than the EU average, while a score below 100 means it is cheaper.
This is an index value, not a monetary amount, meaning that it serves purely as a benchmark.
According to the latest data from Eurostat, Switzerland is the most expensive country for restaurants and hotels among 37 European nations.
A standard basket of these services costs €171 in Switzerland, 71% higher than the EU average.
North Macedonia is the cheapest country, with prices 50% below the EU average, at €50.
Among EU countries, Denmark is the most expensive for restaurants and hotels. A standard basket costs €148 there, 48% above the EU average.
Bulgaria is the cheapest EU country, with a basket total of €53.
Regional differences
Nordic countries are generally more expensive for restaurants and hotels, and Western European countries also trend above the average.
Ireland, the Netherlands, Belgium, Germany, and France are all at or above the €100 EU benchmark.
By contrast, Eastern Europe and the Balkans are far below the €100 EU average.
In Southern Europe, Portugal, Spain, and Greece are noticeably cheaper than the EU average, although Italy stands out as an exception.
In other countries with a Mediterranean coastline, Croatia sits close to the €100 benchmark, while Cyprus and Malta are slightly cheaper but still more expensive than many comparable countries.
Why do prices vary across Europe?
When explaining these cost differences, the price of labour needs to be taken into account, said Kristóf Gyódi from the University of Warsaw.
He told Euronews Business: “As the hospitality sector is highly labour intensive, the dispersion in wage levels between countries translates directly into varying service prices...Other factors also contribute, including variations in energy and utility costs, VAT and other taxes, and the price of commercial real estate.”
The European hospitality association (HOTREC) also emphasised that operators face very different cost structures from one country to another.
“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 told Euronews Business.
Besides energy and VAT, HOTREC also pointed to food inflation, supply chain pressures, and regulatory requirements — which can present a heavy cost burden for small and medium-sized enterprises in particular.
In countries where compliance costs are high, this is inevitably reflected in final prices.
Price level doesn't reflect affordability
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 countries, even if prices are higher in nominal terms.
When travelling, these differences matter. People from higher-income countries can often enjoy lower prices when visiting other parts of Europe, such as travellers from Nordic countries going to Eastern Europe or parts of Southern Europe.
“What ultimately matters for travellers is value for money. When prices rise faster than purchasing power, people tend to shorten their stays, travel off-season, or choose destinations perceived as more affordable,” HOTREC said.
Gyódi added that while price differences influence tourism flows, other factors also matter. Distance, ease of travel, and location-specific attractions are clearly major drivers as well.
