Eastern Europe dominates the latest tourist cost report published this week by the UK's Post Office Travel Money. Eight of the top ten places in the ranking go to cities in the eastern part of the continent, with Bucharest coming in second place, just behind leader Sarajevo.

What the report measures

The City Costs Barometer is an annual study produced by Post Office Travel Money — the financial services arm of the UK Post Office, a government-owned institution. The barometer compares the cost of 12 common tourist expenses — accommodation, meals, drinks, city transport and entry to cultural attractions — for two people over two nights at a three-star hotel. The 2026 edition is the most extensive to date: 50 cities were analysed, up from 38 in the previous edition, with 12 appearing in the ranking for the first time.

Sarajevo leads Europe. Bucharest in second place

Sarajevo tops the ranking with a total cost of £248 for the 12 items analysed, making it one of the 12 cities added to the barometer this year. Four more first-time entries complete the top five: Bucharest (£258, Romania), Tirana (£263, Albania), Belgrade (£265, Serbia) and Trenčín (£272, Slovakia).

The report describes Bucharest as "the place to book" for those seeking variety of things to do alongside well-priced food and drink, noting that "costs remaining low across accommodation, meals and transport" keep it "firmly among the cheapest city breaks this year".

All five top-ranked cities appear in the annual ranking for the first time, confirming the growing momentum of Eastern European destinations in European tourism.

Established cities and new entries

Riga, the capital of Latvia and a UNESCO World Heritage site, topped the 2025 edition of the barometer. In 2026, the city remains competitive but has been overtaken by the new entries.

France managed to break Eastern Europe's grip on the ranking: Lille (7th) and Strasbourg (9th) offer British travellers the option of travelling by train rather than by plane.

Laura Plunkett, head of travel money at the Post Office, said: "Despite concerns about rising prices abroad, there are many European cities that offer excellent value for money. The pound has remained fairly strong, but in these difficult times travellers would benefit from doing their research before booking to see where their money will go furthest, even for short breaks."

Plunkett added: "Our research has shown that Lille and Strasbourg are now cheaper than former champions Athens and Lisbon."

The most expensive destinations

At the other end of the ranking, Oslo remains the most expensive European city break in 2026, with a total cost of £734. Copenhagen (£671) and Edinburgh (£668) complete the podium of the costliest destinations.

Context: why these cities are growing in popularity

Sarajevo's appeal goes beyond price alone. Bosnia and Herzegovina's capital was named the best city in the world last year by National Geographic readers. The city is known for its rich religious and cultural heritage, the Baščaršija bazaar, and its historical significance — the Latin Bridge nearby marks the spot where Archduke Franz Ferdinand was assassinated in 1914, the event that triggered the First World War.

The full results of the 2026 City Costs Barometer are available at postoffice.co.uk/citycosts.