Budget-Friendly European Destinations Take the Spotlight as Summer Trip Costs Climb 38%

PETERSBURG, Fla., April 15, 2025 —Travelers heading to Europe this summer are feeling the pinch of rising travel prices, with the average trip expected to cost $10,346 — a 38% increase over 2024. As the cost of travel soars, many are pivoting toward more affordable European destinations in search of value without sacrificing experience.

 

According to new data from Squaremouth, the nation’s top travel insurance comparison service, European hotspots that offer lower trip costs are quickly rising in popularity. An analysis of thousands of travel insurance policies purchased for this summer reveals the top destinations travelers are headed. 

 

Europe on a Budget: Top Affordable Destinations for Summer 2025

Price-conscious travelers are prioritizing destinations that deliver big on culture, scenery, and value. The following European countries stand out for offering the most budget-friendly summer trips, with Poland taking the top spot for most affordable European destination this summer:

 

Top 10 Affordable European Summer Destinations:

Destination	Average Trip Cost
Poland	$5,505
Finland	$6,577
Austria	$7,177
Greenland	$7,321
Germany	$7,897
Ireland	$8,258
Spain	$8,699
Great Britain (UK)	$8,779
Portugal	$8,903
Sweden	$9,072

 

Travel Behavior Shifts Alongside Rising Costs

As the financial pressure of summer travel builds, travelers are becoming more cautious and strategic. Squaremouth’s data shows:

 

Flexibility is a Priority: The number of travelers opting for Cancel For Any Reason (CFAR) coverage more than doubled this year, climbing from 5% in 2024 to 12% this year.

 

Health is a Top Concern: More than half (52%) of summer travelers say their biggest worry is getting sick or injured while away from home. For international trips, travel medical insurance is especially important, since most U.S. health plans don’t cover medical care abroad. In fact, Emergency Medical claims made up 27% of all paid travel insurance claims in 2024 — the highest of any category.

 

Methodology: The destinations above are based on insured trip costs. Squaremouth analytics compared travel insurance policy sales for trips purchased prior to April 1 with travel dates between May 23 and September 1.