Europe Travel: Best Money-Saving Tips

American travelers may have felt betrayed by their national currency over the past five years, but the dollar is finally gaining some ground. Its value against the euro increased 9.2 percent between January 2010 and January 2012.

Pair a stronger dollar with unsteady European economies, as well as growing tourist markets and emerging destinations, and the happy conclusion is this: Europe travel can be affordable again, and not always where you expect it. FollowTravel + Leisure to the European destinations where you’ll find the most bang for your buck this year.

In Berlin, a slew of new hotels—the city currently has 30,000 more hotel beds than New York City—is creating competition and driving down prices (the average room rate is about $111 per night). And here’s a money-saving tip: Berlin recently introduced the Berlin Welcome Card, which covers two days of public transportation and admission to more than 160 urban attractions for $22.75.

The Berlin Brandenburg International Airport (BER) opens in June and will have new routes to up-and-coming Eastern European destinations. Cities such as Bucharest, Romania, and Zagreb, Croatia, are great values (hotel rates in both cities decreased 20 percent in 2011). Americans will also be pleased by the cost of visiting Hungary; the dollar is up 25 percent against the Hungarian forint since July 2011.

To the west, Iceland continues to be a savings hub for Europe travel. Icelandair flies from the U.S. to Continental Europe with stops in Reykjavik; packages—some as low as $80 for hotels, meals, and spa treatments—encourage overnight stays.

Americans were the second biggest growth market to Portugal in 2011 (after Brazil), where eating out in Lisbon, for instance, costs a fraction of what it does in other European capitals. “Its appeal is similar to that of Spain and Italy but at much better value,” notes Travel + Leisure A-List travel agent Judy Nussbaum.

Any true Italy addicts can take some comfort that a stronger dollar will help in Florence and Venice. But to really stretch your travel budget in Italy, veer off the beaten path to regions like Puglia, where you’ll be rewarded with more than freshly made pasta and century-old olive groves.

Read on for more money-saving tips, such as when to take the plane versus the train, and a breakdown of the best European chain hotels.

When to Visit Europe

Timing is everything. Conventional wisdom has it that summer is the time to visit Europe; according to the Department of Commerce’s Office of Travel & Tourism Industries, June and July are the peak months for U.S. travel there. Though those few extra rays are nice, the best values fall outside these heavily trafficked months. Airfares to Europe start to fall for departures in mid- to late August, just before the school year, and stay low through the end of March (except during the winter holidays and around spring-break time in the U.S.). Though room prices at big-city hotels tend to remain steady year-round, European resorts also have dramatic seasonal rate shifts. For example, at Adronis Luxury Suites, in Santorini, Greece, there’s a 7 percent difference between high- and shoulder-season rates. Shoulder-season travel also means fewer crowds and, more often than not, suitable weather. Spring means more frequent showers, but the flowers are in bloom in the English countryside. In August, temperatures in Paris soar to uncomfortable highs as residents exit en masse. But arrive in mild and sunny May, and you’ll have a greater chance of encountering locals, thanks to an outdoor-café scene in full swing. In some cases, even the off-season may be prime for visits: in Russia, cultural life is at its height in the winter.

Affordable European Hotspot:Reykjavík

Iceland’s price points aren’t at their rock-bottom 2008 levels, but they’re still low; indeed, hotel rates are down 12 percent from where they were in 2010. Icelandair also offers great fares to Reykjavík.

Affordable European Hotspot: Berlin

The city’s hotel boom makes for some highly competitive room rates: at about $111 a night, they cost 18 percent less than the average European room, according to hotels.com’s Hotel Price Index.

Affordable European Hotspot:Kraków, Poland

Everything from food to transportation here is a steal: hotel prices hover around $75 a night, a full 44 percent lower than Europe’s average.

Affordable European Hotspot:Dublin

Flights from the U.S. to Dublin tend to be less expensive than those to other European destinations, and the city’s a good launching pad for the Continent. Plus: Dublin hotel rates have dropped 19 percent in the last two years

Affordable European Hotspot:Budapest

The price of consumer goods and services in Budapest remains low (hotels average $81 a night) and the dollar is increasingly powerful here: up 25 percent against the Hungarian forint since last July.

Affordable European Hotspot:Puglia, Italy

Stronger greenbacks will definitely help in major cities, but the best savings are found off the beaten path in places such as Puglia, notes travel agent Margot Cushing with Frosch Travel in New York City.

Affordable European Hotspot:Puglia, Italy

Stronger greenbacks will definitely help in major cities, but the best savings are found off the beaten path in places such as Puglia, notes travel agent Margot Cushing with Frosch Travel in New York City.

Affordable European Hotspot: Greece

Last year, Greece slashed its hotel value-added tax rate from 23 to 6.5 percent, making accommodations significantly more affordable. Some analysts expect overall prices to slip as the country moves into its second summer of economic stress.

Paris to Amsterdam by Plane

Flying isn’t always the fastest—or best—option. So we put three modes of transportation (plane, train, automobile) to the test on the busy route from Paris to Amsterdam. First, travel by plane:

Total Cost: $255. $184 round-trip on KLM; $66 for a taxi from central Paris to Charles de Gaulle; $5 for a train from Schiphol.

Total Travel Time: 4 hours. The flight is a mere hour and 15 minutes—you’ll spend more time getting to and from (and waiting at) the airports.

Hassle Factor: The usual airport inconveniences, from long lines to unexpected delays.

Best For: Mileage hounds. KLM is a SkyTeam partner with Delta.

Paris to Amsterdam by Train

Total Cost: $48. $46 for an advance-purchase ticket to Amsterdam Centraal; $2 for the Métro in Paris.

Total Travel Time: Four hours. Take the Métro to Gare du Nord and hop the Thalys train; you’ll be in central Amsterdam in 3 hours and 19 minutes.

Hassle Factor: Practically nil.

Best For: Savvy fashionistas. You can stop off in Antwerp, the capital of avant-garde fashion, to shop for up-and-coming Belgian designers such as Christian Wijnants.

Paris to Amsterdam by Automobile

Total Cost: $617. $529 for a two-day Hertz rental with collision and theft insurance; about $88 for gas and tolls.

Total Travel Time: Five hours. It’s a straight shot across Belgium; you’ll pass pancake-flat farmland and quaint towns.

Hassle Factor: Traffic around Brussels, especially if there’s a summit in town.

Best For: Flexible travelers. It’s a short detour to Westvleteren for a taste of Westvleteren 12, a rare and vaunted Trappist brew sold only in this Belgian town. Down the road, the fairy-tale city of Bruges (and its 50-plus chocolate shops) beckons.

Worthwhile European Chain Hotel: Grecotel Hotels & Resorts

Across Europe, you’ll find local brands like Grecotel that are reliable, convenient, and increasingly cool.

Where to Find Them: 21 resorts in Greece

The Profile: A beachfront location for every taste, from honeymoon-worthy hotels to all-inclusive, family-friendly resorts.

Hot Property: Take the whole family to Grecotel El Greco, located on a white-sand beach in Crete, with three swimming pools, a kids’ club and teen lounge, and an organic restaurant serving local specialties.grecotel.com; doubles from $118.

Most and Least Expensive European Cities

Traveling to Europe? Some cities offer great value. Others, not so much.

Want to travel to Europe without cashing in your 401(k)?

Well, if your plan includes London, beware: in 2010, the average hotel rate was $209, up 11 percent from 2009. Compare that toAthens, where that rate was just $97, down 18 percent. Kind of makes the Parthenon look better than ever, no?

It turns out that the weak sisters on the fringes of Western Europe are shaping up to offer even greater value for American travelers this spring and summer than at any time since the recent recession began. Like Athens, Dublin has been battered by sovereign debt crises, and hotel prices have dropped there as well. The shaky economies of Portugal, Spain, and Italy are also resulting in lower travel costs in some cities.

So where can you save—and where will you spend? We compiled statistics from Trivago.com,HotelsCombined.com, PriceOfTravel.com, and the U.S. State Department to find out.

Americans might expect to find improved value even in those European cities where travel prices have held firm or risen slightly, like Berlin and Vienna. The euro declined against the dollar by 13 percent from January 2008 to January 2011, and if that trend continues, you’ll get even more purchasing power in the 17 nations that use the euro. In fact, the relative strength of the dollar may even be enough to offset higher hotel rates in such expensive cities as Amsterdam (up 6 percent in 2010 versus 2009) and Paris (up 4 percent).

The carbuncle on that otherwise pretty portrait is non-euro London. In fact, London is one of the few Western European countries for which the State Department has raised its per-diem limits—up 11 percent, to $503 a day for hotel, meals, and incidentals. Expect no bargains along the Thames this season.

Still, the sunny travel outlook prevails more often than not. In Athens, a two-mile cab ride costs only $3.63, a beer at a café costs as little as $2.74, and the average hotel price in January was a mere $97, down a whopping 18 percent from a year earlier. What’s more, in December 2010 the government reduced its value added tax on hotel stays from 11 percent to 6.5 percent to stimulate tourism.

The poor economy in the former Celtic Tiger holds another bright spot for tourists. For the best value, consider flying into Ireland’s Shannon Airport and enjoying the good values in the west. Dublin is more expensive (a two-mile cab ride will cost you around $11), but even there hotel prices have come down.

So if you haven’t considered Western Europe as a vacation destination in the past several years, 2011 just might be the year you’ll want to return. But be sure you know which cities are good values—and which ones could still put a big hurt on your wallet.

Expensive: Amsterdam

Hold onto your pocketbook as you roam past the canals, along the cobbled streets, and through the infamous red-light district. The little Dutch boy of fiction has taken his finger out of the dike, and visitors to Amsterdam might find themselves financially under water.

• Average 2010 hotel rates: $174 (up 6 percent)
• Price of beer (half-liter): $3.90–$6.49
• Two-mile taxi ride: $13.47
• State Department 2011 per diem: $441 (down 10 percent)

Value: Athens

The Greek capital has been rocked by a debt crisis. The result? Austerity measures and decreased spending. It also means that tourism-related businesses are dropping prices in an effort to lure free-spending foreign visitors. You, perhaps.

• Average 2010 hotel rate: $126 (down 9 percent)
• Price of beer (12 oz.): $2.60–$5.19
• Two-mile taxi ride: $3.63
• State Department 2011 per diems: $333 (down 10 percent)

Expensive: Venice

“O Sole Mio”? How about “Oh Woe Is Me-oh”? That’s what you’ll be thinking as you lay out as much as $130 for a 40-minute gondola ride. It’s true that Venice is sinking into the sea and that you may get a little wet as you tiptoe through the piazzas. But you won’t mind. After paying these prices, you’ve already been hosed.

• Average 2010 hotel rate: $211 (up 5 percent)
• Price of beer (12 oz.): $3.90–$6.49
• Two-mile water-taxi ride: $8.44
• State Department 2011 per diem: $546 (down 10 percent

Value: Berlin

At last, an affordable city in Northern Europe. What goes on here? Hotel rates that are downright reasonable help, as does an efficient, easy-on-the-pocketbook transportation system. But watch out: the wild nightlife could put a dent in your budget.

• Average 2010 hotel rate: $122 (no change)
• Price of beer (half-liter): $3.25–$5.19
• Two-mile taxi ride: $11.11
• State Department 2011 per diem: $417 (down 10 percent)

Expensive: Copenhagen

A holiday in the Danish capital is affordable—if you’re willing to postpone your retirement for a year or two to pay for it. Even though hotel rates are down, they’re still on the high side. But if you use public transit and search out restaurant deals, it might be doable on a moderate budget.

• Average 2010 hotel rate: $183 (down 9 percent)
• Price of beer (pint): $5.22–$8.70
• Two-mile taxi ride: $10.86
• State Department 2011 per diem: $440 (down 5 percent)

Value: Dublin

The Celtic Tiger has been tamed by the same sort of debt crisis impacting Spain, Portugal, and Greece. While not a cheap destination, Dublin is now much more affordable than in recent years. Admission to many major attractions (Dublinia, Christ Church Cathedral, Dublin Castle, Kilmainham Gaol) costs $10 or less.

• Average 2010 hotel rate: $131 (down 9 percent)
• Price of beer (pint): $5.84–$7.79
• Two-mile taxi ride: $11.11
• State Department 2011 per diem: $452 (down 9 percent)

Expensive: Geneva

The U.S. State Department cut its average travel allowance throughout Europe, but Geneva was a notable exception. Geneva is a financial center, a diplomatic center, and a major operations center for the United Nations. That means everyone except you is traveling on an expense account—and that’s why hotels and restaurants keep their prices high.

• Average 2010 hotel rate: $248 (down 2 percent)
• Price of beer (half-liter): $4.40–$8.07
• Two-mile taxi ride: $16.54
• State Department 2011 per diem: $530 (up 7 percent)

Value: Brussels

Hotel prices are dropping, which is good. Beer prices are expensive, which is distressing. On the other hand, have you ever tasted Belgian beer? Most assuredly worth every penny. Plus there are tons of free things to do in this cosmopolitan capital, from gratis tastings at the city’s chocolate shops to free or low-fee museums to self-guided tours of historic Old Town.

• Average 2010 hotel rate: $133 (down 15 percent)
• Price of beer (pint): $5.19–$10.39
• Two-mile taxi ride: $8.33
• State Department 2011 per diem: $364 (down 10 percent)

Expensive: Rome

They call it the Eternal City because you’ll be paying off your Rome vacation forever. Either that or you can join the U.S. State Department and have the feds reimburse you more than five C-notes a day to travel there.

• Average 2010 hotel rate: $172 (up 2 percent)
• Price of beer (12 oz.): $3.25–$5.19
• Two-mile taxi ride: $11.11
• State Department per diem: $552 (down 11 percent)

Value: Helsinki

We’ve heard it called a private club for blonde people. But if you like your destinations clean, well run, stylish, and yes, affordable, Helsinki should be on your travel map. Don’t miss the berry-laden cuisine, a traditional sauna (Kotiharju is the city’s last public wood-fired sauna; admission $13), and a stroll along the downtown Esplanade.

• Average 2010 hotel rate: $112 (down 7 percent)
• Price of beer (pint): $5.19–$7.79
• Two-mile taxi ride: $13.89
• State Department 2011 per diem: $377 (down 11 percent)

Expensive: Oslo

The Norwegian phrase for “taxi ride” should translate into English as “second mortgage.” Restaurant prices are listed in arms and legs, not kroner. At these prices most people would want to cry in their beer—except that a beer costs too much.

• Average 2010 hotel rate: $204 (no change)
• Price of beer (pint): $5.85–$11.71
• Two-mile taxi ride: $17.12
• State Department 2011 per diem: $382 (down 4 percent