With so many nations sharing borders across Europe, it is often a popular place for backpackers. Over a few months, you can experience over a dozen different cultures and countries.

Regarding the cheapest cities in Europe, we will weigh them up based on the overall price of goods and services. Understandably, you won’t see London in this list, as it remains one of the most expensive cities in the world.

The British Pound (GBP) has experienced an inflation squeeze. Knowing what causes inflation when it squeezes a currency’s value is an excellent economic lesson – much more so if you are basing your holidays on frugality, based on how far your limited amount of cash will take you.

It has become cheaper for some people traveling from countries with certain currencies. However, it’s still not something that’ll put London on this list anytime soon. Our top three cities are all relatively close to each other and are situated in one specific area of Europe.

Bucharest, Romania

The first city on our list today is the Romanian capital. It is one of Europe’s more significant cultural hubs and one of the leading Eastern European cities for holidaymakers. A driving factor behind this popularity is how cheap Romania is for holidaymakers.

Renowned for its cheap beer, hotels and restaurants, it is a must for travelers looking to experience authentic culture on a shoestring budget. The only downside that some tourists have highlighted is the fact that the weather can be poor. However, this is to be expected, given the region of the world in which Romania is situated.

It isn’t just the cheap consumables that attract tourists from all over the world to this destination. There is also plenty of old architecture, such as the world-famous Palatul Parlamentului government building, which has over 1,000 rooms.

If you’re going for a beach holiday, there are places you can find but you may be better off looking at some destinations a little further south. If you’re operating purely on which city is the cheapest, Bucharest usually features in the top three and is often cited as one of the leading European destinations.

Riga, Latvia

As one of the smallest nations in Europe in terms of land area, Latvia can often fly under the radar as a holiday destination.

However, despite being smaller in size, it boasts all the same advantages as Bucharest. Latvia, in general, has some fantastic medieval architecture. You’ll find most of these buildings in Riga, the capital.

Unfortunately, it shares a similar climate to that of Romania. However, suppose you’re going for cheap food, drink, accommodation, a good time and fabulous unique architecture – in that case, there are few other European cities where you’ll be able to experience this so cheaply.

Riga has a famous central market, where you can find plenty of local cuisine at a bargain price. If you drink beer, the drinks are also very cheap compared to every other European city.

Budapest, Hungary

Another capital city from Eastern Europe, the third and final city on our list today is Budapest, Hungary. The River Danube splits the two main, eponymous areas. One is called Buda, the more relaxed part of the city. The other area is called Pest. Buda is more scenic and historical whereas Pest has more bars in which you can take advantage of the cheap hospitality.

With so much to do in Hungary, traveling around this historical city won’t set you back too much money, thankfully. You can have a night out or a cruise down the river – plenty of these types of experiences are much cheaper than on trips to other European capital cities.


Despite our focus on one part of Europe, there are plenty of cities where you’ll get excellent value for your money. But, of course, it depends on what type of holiday you are looking for, as these cities have a lot in common regarding affordable nightlife and other kinds of hospitality.

If you are travelling from other areas in Europe, the flights will often be the most considerable expense if you travel to any of the three cities we have touched on today.

If you’re travelling from the UK, you may feel more of a pinch in your pocket due to inflationary issues, which are more prominent than in European countries with higher living standards, such as France, Germany and the Czech Republic. However, if you have a few hundred set aside for a trip, you will be guaranteed an excellent time.