Revealed: The cheapest and most expensive European Christmas market is upon us, and Riga is the best value (with a glass of mulled wine costing just £3.50)… while Vienna is the most expensive

The best value European Christmas market holidays for Brits have been revealed in an annual report – and Riga comes in at number one.

The British will see their pound rise the furthest in the Latvian capital, followed by Stockholm, Sweden, in second place and Zagreb, Croatia, in third.

Vienna in Austria has emerged as Europe’s most expensive holiday destination for Brits.

This is evident from the Post Office Travel Money Christmas Markets Barometer 2023, which compared the price of a two-night B&B stay for two in twelve European cities plus flights (or Eurostar) and five daily costs.

The basket of goods included two three-course meals with wine for two, four festive snacks and four glasses of mulled wine or punch from the Christmas market.

Riga, which takes the crown for the fifth year in a row, is 46 percent cheaper than Vienna, the results show.

The price tag of £506 in Riga is marginally lower than last year (down one per cent) and almost 10 per cent cheaper than Stockholm (£559.50) and Zagreb (£559.60), its closest competitors, the Post Office said.

The city’s victory is “the result of cheap flights and competitively priced accommodation and not local prices, as the city only ranks sixth cheapest for meals and drinks,” the study points out.

By comparison, Krakow (eight, £756) is much cheaper locally, with meals and drinks for two days costing just £144, compared to £199 in Riga.

However, the report shows that the scarcity of flights before Christmas has made travel costs much more expensive this year.

As a result, barometer costs have increased by almost 16 percent and the Polish city has fallen five places in the barometer table this year, after being in third place in 2022.

Stockholm is ‘surprisingly second’ in this year’s barometer, the post office said.

“While meals and drinks remain expensive compared to Eastern European competitors, a 9.4 percent increase in the value of the pound sterling against the Swedish krona has helped drive down prices for these products,” the report said .

‘More importantly, good hotel availability and a drop in flight costs due to strong competition on the London-Stockholm route explain why the city is an excellent choice for bargain hunters.’

The research shows that the total costs of a two-night stay are more than 25 percent lower than last year.

Just 10 cents behind Stockholm is the Croatian capital Zagreb, where prices “do not appear to have been affected by the change of the country’s currency from the kuna to the euro,” the report suggests.

Prices for meals and drinks are only 0.6 percent higher than a year ago and a two-night Christmas market break costs a total of 2.8 percent more than last year.

Prague (fourth, £640) climbed two places this year, helped by a big drop (21 per cent) in the cost of flights and accommodation, the Post Office said. With an overall price drop of 13 percent, it is one of six cities where barometer costs have fallen over the past year.

Riga, Stockholm, Berlin, Budapest and Tallinn are the other five.

Pricey Vienna (£933) is just ahead of Copenhagen in the table (second, £902).

At £344 and £375 respectively, the cost of meals and drinks for two days in both cities is around £150 more than Riga (£199).

However, flight and accommodation costs have fallen in both countries, meaning that overall price increases for a two-night stay have been minimal: 1.6 percent in Copenhagen and 0.8 percent in Vienna.

Those planning to visit the Christmas markets in Salzburg may also want to watch their wallets. The Austrian city is the third most expensive (£846) on the barometer.

Laura Plunkett, Head of travel money at the post officesaid this year’s barometer is “the best possible proof” that it always pays to add up all the holiday costs before booking a trip abroad.

“As the research shows, a scarcity of flights before Christmas has resulted in higher travel costs to Krakow, typically one of the most affordable cities in our price surveys,” she added. ‘While the good availability of flights has reduced the costs of city trips to Riga and Stockholm.

‘However, low costs for meals and drinks can also have a big impact on the overall price of a short break, and this explains why Zagreb, Prague and Budapest are cities to consider for holidaymakers planning a Christmas market holiday.’