In the market for a European Christmas shopping bargain

• Riga is the best buy for a Christmas Markets break for the fourth time running
• Zagreb and Krakow complete an Eastern European 1-2-3 in the Post Office barometer
• Vienna is most expensive of 12 European cities surveyed
• Weaker sterling makes Eurozone cities pricier than in the last 2019 survey – but its strength against Croatian, Hungarian, Polish and Swedish currencies make their cities cheaper

Latvia’s capital city, Riga, emerges as the bargain choice for a European shopping trip for the fourth time running in Post Office Travel Money’s Christmas Markets Barometer, the first report to be published since 2019. With Advent markets set to open across Europe within the next fortnight, the Post Office barometer compares costs in 12 European cities¹ with those in 2019 - and found that prices in Riga are now 45 per cent lower than in Vienna, the priciest city in the survey.

Riga’s barometer total of £507 for two people was calculated by combining the costs of return flights, two nights’ three-star accommodation, airport transfers, two evening meals with wine, coffee, festive drinks and snacks at the Christmas Market. Riga’s ranking was due largely to the low cost of accommodation and cheap flights because the city was ranked only sixth cheapest for meals and drinks. Budapest (£745) was cheapest for these items, but the higher cost of flights and accommodation meant that the Hungarian capital could only make eighth place in the barometer.

The report comes as new Post Office research reveals that four-in-ten (42 per cent) of Britons felt that the rising cost of living would have some impact on their holiday plans². Earlier research, conducted in late September, had found that a quarter of those planning trips abroad who thought the volatility of sterling would impact their holiday would look for a cheaper destination, while a third intended to cut their holiday budget³.

Nick Boden, Head of Post Office Travel Money, which accounts for one-in-four UK foreign exchange transactions, said: “Our research reflects the concern that people have about living costs but also shows that their solution is more likely to be cost cutting rather than jettisoning holiday plans.

“Short breaks are a practical way to holiday abroad for a lower cost and at this time of year Christmas Markets are a real attraction. Although prices have risen across the board since we last conducted the survey, the scale of those increases varies significantly from city to city⁴. This means budget-conscious Britons who do their holiday homework can potentially save hundreds of pounds by picking a city like Riga where costs are low.”

Coming close to Riga in offering holidaying Britons a bargain, Croatia’s capital city, Zagreb, was runner up in the barometer with a total of £541, while Poland’s Krakow (£649) made it an Eastern European 1-2-3. The cost of a two-night break in all three cities was found to have risen by less than five per cent since 2019 – by 2.2 per cent in Riga, 3.5 per cent in Zagreb and 4.9 per cent in Krakow.

In sharp contrast, prices increased by at least 18 per cent in the other cities surveyed. Barometer costs in fourth-placed Tallinn (£684) rose by 29 per cent, while they were up by over a third (34.4 per

cent) in Copenhagen, where the overall cost of £881 made it the 11^thmost expensive city surveyed.

Vienna was priciest of the 12 cities at £921, up 18.6 per cent on 2019 levels. It was also around 19 per cent more expensive than another Austrian city, Salzburg (£775), a new addition to the barometer, which came ninth in the survey.

Lille was again best value among the cities surveyed in Western Europe. At £725, the French city came fifth in the survey despite a rise of 26 per cent in barometer costs. It is also the closest to the UK with an 82-minute train journey from London.

Sterling’s value is a factor for Britons to consider before booking a Christmas Markets trip. Compared with 2019, the weak Hungarian forint means sterling will stretch almost 23 per cent further in Budapest, while a 10.3 per cent fall in the value of the Polish zloty against the pound explains why meal and drink costs in Krakow are low. Visitors to Stockholm and Zagreb will also benefit from a boost of around two per cent to their spending power. Conversely, those visiting Prague will get around four per cent fewer Czech koruna and in eurozone cities sterling is just over one per cent weaker than in 2019.

Notes to editor

1. Riga +2.2%
2. Zagreb +3.5%
3. Krakow +4.9%
4. Stockholm +18.0%
5. Vienna +18.6%
6. Budapest +19.3%
7. Prague +19.5%
8. Berlin +23.1%
9. Lille +26.0%
10. Tallinn +29.0%
11. Copenhagen +34.4%