Europe Travel: Best Money-Saving Tips

T+L gives you the lowdown on how to plan an affordable trip to Europe that stays within your budget.

American travelers may have felt betrayed by their national currency over the past five years, but the dollar is finally gaining some ground. Its value against the euro increased 9.2 percent between January 2010 and January 2012.

Pair a stronger dollar with unsteady European economies, as well as growing tourist markets and emerging destinations, and the happy conclusion is this: Europe travel can be affordable again, and not always where you expect it. Follow Travel + Leisure to the European destinations where you’ll find the most bang for your buck this year.

In Berlin, a slew of new hotels—the city currently has 30,000 more hotel beds than New York City—is creating competition and driving down prices (the average room rate is about $111 per night). And here’s a money-saving tip: Berlin recently introduced the Berlin Welcome Card, which covers two days of public transportation and admission to more than 160 urban attractions for $22.75.

The Berlin Brandenburg International Airport (BER) opens in June and will have new routes to up-and-coming Eastern European destinations. Cities such as Bucharest, Romania, and Zagreb, Croatia, are great values (hotel rates in both cities decreased 20 percent in 2011). Americans will also be pleased by the cost of visiting Hungary; the dollar is up 25 percent against the Hungarian forint since July 2011.

To the west, Iceland continues to be a savings hub for Europe travel. Icelandair flies from the U.S. to Continental Europe with stops in Reykjavik; packages—some as low as $80 for hotels, meals, and spa treatments—encourage overnight stays.

Americans were the second biggest growth market to Portugal in 2011 (after Brazil), where eating out in Lisbon, for instance, costs a fraction of what it does in other European capitals. “Its appeal is similar to that of Spain and Italy but at much better value,” notes Travel + Leisure A-List travel agent Judy Nussbaum.

Any true Italy addicts can take some comfort that a stronger dollar will help in Florence and Venice. But to really stretch your travel budget in Italy, veer off the beaten path to regions like Puglia, where you’ll be rewarded with more than freshly made pasta and century-old olive groves.

Read on for more money-saving tips, such as when to take the plane versus the train, and a breakdown of the best European chain hotels. —Stirling Kelso

Timing is everything. Conventional wisdom has it that summer is the time to visit Europe; according to the Department of Commerce’s Office of Travel & Tourism Industries, June and July are the peak months for U.S. travel there. Though those few extra rays are nice, the best values fall outside these heavily trafficked months. Airfares to Europe start to fall for departures in mid- to late August, just before the school year, and stay low through the end of March (except during the winter holidays and around spring-break time in the U.S.). Though room prices at big-city hotels tend to remain steady year-round, European resorts also have dramatic seasonal rate shifts. For example, at Adronis Luxury Suites, in Santorini, Greece, there’s a 7 percent difference between high- and shoulder-season rates. Shoulder-season travel also means fewer crowds and, more often than not, suitable weather. Spring means more frequent showers, but the flowers are in bloom in the English countryside. In August, temperatures in Paris soar to uncomfortable highs as residents exit en masse. But arrive in mild and sunny May, and you’ll have a greater chance of encountering locals, thanks to an outdoor-café scene in full swing. In some cases, even the off-season may be prime for visits: in Russia, cultural life is at its height in the winter.

Iceland’s price points aren’t at their rock-bottom 2008 levels, but they’re still low; indeed, hotel rates are down 12 percent from where they were in 2010. Icelandair also offers great fares to Reykjavík.

The city’s hotel boom makes for some highly competitive room rates: at about $111 a night, they cost 18 percent less than the average European room, according to hotels.com’s Hotel Price Index.

Everything from food to transportation here is a steal: hotel prices hover around $75 a night, a full 44 percent lower than Europe’s average.

Flights from the U.S. to Dublin tend to be less expensive than those to other European destinations, and the city’s a good launching pad for the Continent. Plus: Dublin hotel rates have dropped 19 percent in the last two years.

The price of consumer goods and services in Budapest remains low (hotels average $81 a night) and the dollar is increasingly powerful here: up 25 percent against the Hungarian forint since last July.

Stronger greenbacks will definitely help in major cities, but the best savings are found off the beaten path in places such as Puglia, notes travel agent Margot Cushing with Frosch Travel in New York City.

Eating out here costs a fraction of what it does in other European capitals; even luxury hotels offer great value. At press time, the Sofitel Lisbon Liberdade’s starting rate for May was $197, while rooms at the Sofitel Legend The Grand Amsterdam began at $381.

Last year, Greece slashed its hotel value-added tax rate from 23 to 6.5 percent, making accommodations significantly more affordable. Some analysts expect overall prices to slip as the country moves into its second summer of economic stress.

George Hobica, founder of Airfarewatchdog, counsels that some airlines, notably Aer Lingus and Iberia, offer better rates on their own sites than they do on third-party aggregators such as Kayak. If you search a consolidator, try Momondo: it is one of the few that also offers results for low-fare carriers and rail alternatives.

According to Hobica, airfares from the U.S. to Spain, Ireland, and Turkey tend to be more reasonable than to other European destinations—in part due to lower airport and government taxes. Icelandair also has great fares for flights to Europe via Reykjavík.

The two most popular budget airlines in Europe are Ryanair and EasyJet, but there are dozens of smaller companies that operate only on select routes. If you’re flying to multiple countries in Europe, check whichbudget.com to see what airline will connect the dots.

Flying isn’t always the fastest—or best—option. So we put three modes of transportation (plane, train, automobile) to the test on the busy route from Paris to Amsterdam. First, travel by plane:

Total Cost: $255. $184 round-trip on KLM; $66 for a taxi from central Paris to Charles de Gaulle; $5 for a train from Schiphol.

Total Travel Time: 4 hours. The flight is a mere hour and 15 minutes—you’ll spend more time getting to and from (and waiting at) the airports.

Hassle Factor: The usual airport inconveniences, from long lines to unexpected delays.

Best For: Mileage hounds. KLM is a SkyTeam partner with Delta.

Total Cost: $48. $46 for an advance-purchase ticket to Amsterdam Centraal; $2 for the Métro in Paris.

Total Travel Time: Four hours. Take the Métro to Gare du Nord and hop the Thalys train; you’ll be in central Amsterdam in 3 hours and 19 minutes.

Hassle Factor: Practically nil.

Best For: Savvy fashionistas. You can stop off in Antwerp, the capital of avant-garde fashion, to shop for up-and-coming Belgian designers such as Christian Wijnants.

Total Cost: $617. $529 for a two-day Hertz rental with collision and theft insurance; about $88 for gas and tolls.

Total Travel Time: Five hours. It’s a straight shot across Belgium; you’ll pass pancake-flat farmland and quaint towns.

Hassle Factor: Traffic around Brussels, especially if there’s a summit in town.

Best For: Flexible travelers. It’s a short detour to Westvleteren for a taste of Westvleteren 12, a rare and vaunted Trappist brew sold only in this Belgian town. Down the road, the fairy-tale city of Bruges (and its 50-plus chocolate shops) beckons.

Across Europe, you’ll find local brands like Grecotel that are reliable, convenient, and increasingly cool.

Where to Find Them: 21 resorts in Greece

The Profile: A beachfront location for every taste, from honeymoon-worthy hotels to all-inclusive, family-friendly resorts.

Hot Property: Take the whole family to Grecotel El Greco, located on a white-sand beach in Crete, with three swimming pools, a kids’ club and teen lounge, and an organic restaurant serving local specialties. grecotel.com; doubles from $118.

Where to Find Them: 14 boutique hotels in U.K. cities (but not London)

The Profile: There are wine tastings, as well as in-house bistros serving locally sourced food paired with top-notch wines.

Hot Property: A sultry color scheme, freestanding tubs, and a subterranean wine cellar are among the draws at the centrally located Hotel du Vin, in Edinburgh. hotelduvin.com; doubles from $234.

Where to Find Them: 710 hotels across the Continent

The Profile: The European equivalent of Motel 6, Ibis is known for great value and dependable, no-frills rooms.

Hot Property: Soften the blow of an early-morning flight out of Milan by staying at the new Ibis Milano Malpensa Aeroporto. ibishotel.com; doubles from $64.

Where to Find Them: 39 properties in Germany and, now, Austria

The Profile: Central locations and chic décor make this a flashpacker favorite.

Hot Property: Exporting its signature turquoise armchairs, the chain last year opened an Austrian outpost, Motel One Salzburg-Süd. motel-one.com; doubles from $97.

Where to Find Them: 361 locations in 17 countries throughout Europe

The Profile: Business travelers have long flocked to the NH’s comfortable, convenient rooms; the new spin-off brand, nHow, is geared toward a younger, in-the-know clientele.

Hot Property: A space-age look, an in-house recording studio, and floor-to-ceiling windows overlooking the Spree River up the cool factor at nHow Berlin. nh-hotels.com; doubles from $197.

Where to Find Them: 160 properties in Scandinavia and northern Europe

The Profile: Everything’s included: organic buffet breakfasts, fair-trade coffee, Wi-Fi—plus access to well-equipped gyms and kids’ play areas.

Hot Property: With its fresh, modern style, plus a photo booth in the lobby and record players in the suites, Stockholm’s Scandic Grand Central raised the bar when it opened in September. scandichotels.com; doubles from $220.

Where to Find Them: 79 properties in France, Germany, Portugal, and Spain

The Profile: Big-box city hotels with thoughtful amenities, including in-room workout equipment for fitness fanatics and suites with bunks for small children.

Hot Property: From the black-and-white façade to the minimalist, red-accented rooms, there’s modern décor inside and out at the Tryp Zaragoza, in Spain’s Aragon region. tryphotels.com; doubles from $79.