Europe on a budget: Five countries where a night costs less than €60

According to data from AirDNA, the 2026 ranking of holiday rentals in Europe confirms that the Balkans remain the cheapest region, with North Macedonia and Kosovo posting rates below 42 euros per night. Conversely, Monaco and Iceland top the list of the most expensive countries, with nightly rates exceeding 200 euros.

With the rise of low-cost flights and train travel, accommodation also plays a decisive role in travelers’ budgets, particularly as summer approaches—a time when prices tend to rise. Short-term rentals are attracting more and more travelers over traditional hotels, often thanks to more affordable costs, greater freedom of movement, and an experience that brings them closer to local life.

To assess the actual cost of a night’s stay in Europe this year, the AirDNA platform (a global specialist in holiday rental data analysis) analyzed average daily rates, occupancy rates, and booking patterns over the past twelve months. The study identified the five most affordable and the five most expensive destinations for holiday rentals on the continent.

Where do travelers spend the least? Eastern Europe remains the most affordable option

The Balkans and Eastern Europe have once again emerged as the most attractive region for travelers seeking an affordable holiday without sacrificing scenery, history, and culture.

Topping the list, North Macedonia has an average rate of less than 40 euros per night (39.81 euros). Here, travelers often plan their trips at the last minute, booking on average just 13 days before departure, for getaways lasting about 4 to 5 nights. The most popular destinations are Skopje and Lake Ohrid, often touted as an affordable alternative to the major lakes of Western Europe.

Kosovo ranks second. Still largely untouched by mass tourism, this region is increasingly popular among travelers seeking authenticity at a low cost, with an average rate of 41.63 euros per night. It's the European country with the shortest booking lead time (barely a week), reflecting a strong focus on “last-minute” travel and stays that are part of broader tours throughout the Balkans.

Moldova ranks third, combining rolling hills, historic monasteries, and a rich winemaking tradition at an average cost of 45.49 euros per night. The country also has one of the highest occupancy rates among budget destinations, with stays longer than the European average, concentrated mainly in the capital, Chișinău.

In fourth place is Serbia, with an average rate of 51.17 euros per night. Belgrade remains the preferred destination for visitors, but visitor numbers are increasing in Novi Sad, in the wine-growing regions of Šumadija, and in the natural areas along the Drina River.

Bosnia and Herzegovina rounds out the top five with an average rate of 56.33 euros per night. Sarajevo remains the most visited destination, but many tourists take the opportunity to extend their trip to Mostar and Herzegovina's countryside.

In summary, the five cheapest countries for holiday rentals in 2026 are: North Macedonia, Kosovo, Moldova, Serbia, and Bosnia and Herzegovina.

Where do people spend the most? The continent’s most exclusive destinations

At the opposite end of the spectrum are countries where lodging can put a significant strain on the overall travel budget.

The title of most expensive country goes to Monaco, where demand for accommodations far exceeds supply, particularly during events such as the Formula 1 Grand Prix. Here, the average daily rate is around 417 euros, with reservations made well in advance (about two months before departure) for short stays of approximately four nights.

Next is Iceland, a popular destination for its natural landscapes and the Northern Lights. In Reykjavík, the average cost rises to 209.90 euros per night. It is also the country with the longest booking lead time in Europe, averaging more than two months.

In third place is Andorra, a favorite destination for skiing and hiking enthusiasts, with an average rate of 188.57 euros per night for stays of approximately four nights.

Switzerland ranks fourth with an average rate of 184.26 euros per night. Among the most popular (and most expensive) destinations are Interlaken and Zurich, where visitors stay an average of five nights.

The United Kingdom rounds out the ranking, with an average rate of 175.79 euros per night. Among the most expensive areas in the country are London, Suffolk, the Gloucester and Cheltenham area, and Edinburgh—the latter being particularly sought after during festival seasons, when prices soar even higher.