Travel is finally opening up again after Covid disruptions, and millions of people will be heading abroad to celebrate. But with the rising cost of living to consider, many will also be trying to get the most bang for their buck with budget-friendly holiday destinations.

So which destinations offer the best value for money?

Merchant Machine set out to find the cheapest cities for a day out by investigating a range of metrics across 38 cities. These included the currency exchange rate, inflation rate, and the average cost of various expenses such as entertainment and excursions, local transport, restaurant meals and beer.

Keep reading to find out which cities came out on top!

The top 10 cheapest cities for a day out

Our top ten list includes cities from all around the world, including Latin America, Europe, the Middle East and Asia. 

Here is the full list of the top ten cheapest cities for a day out.

Rank	City	Exchange rate between £ (higher = better value)	Inflation rate (higher = potential higher costs)	Avg. cost of a hotel room for one night (£)	Avg. price for entertainment/ excursion (£)	Return ticket (local transport) (£)	Cost of 3 meals (inexpensive restaurant) (£)	Domestic beer (0.5 litre draught) in restaurant (£)
1	Bogota, Colombia	5036.87	0.0386	47	56.83	1	9	0.8
2	San Jose, Costa Rica	831.11	0.0191	50	45.3	1.2	21.72	1.58
3	Seoul, South Korea	1584.81	0.01	64	73.3	1.64	17.1	2.54
4	Budapest, Hungary	452.23	0.039	99	57.5	1.54	18.57	1.44
5	Ankara, Turkey	18.57	0.1186	38	/	0.7	8.1	1.89
6	Mexico City, Mexico	25.4	0.0325	73	116.55	0.48	17.76	1.97
7	Santiago, Chile	1070.4	0.037	77	68.6	1.5	19.68	2.81
8	Vilnius, Lithuania	1.19	0.018	62	59.05	1.34	22.74	2.95
9	Lisbon, Portugal	1.19	0	143	34.25	2.52	25.29	1.69
10	Prague, Czech Republic	29.3	0.034	142	45.4	2.18	17.43	1.54

Latin American cities come top of the list 

The city offering the lowest overall cost of a day out is Bogota in Colombia. Bogota has a high exchange rate at 5036.87 Colombian Peso to 1 Pound Sterling, which is great value for British travellers. A higher exchange rate means you will get more money for every Pound you convert.

Bogota also has very inexpensive costs – three meals will set you back just £9 on average, and local transport offers a return ticket for only £1! 

Inflation rates are a little high in Colombia, at 3.86%. Higher inflation rates could pose a problem by causing higher prices, so this is definitely something to be aware of when planning your holiday. However, our research shows that despite the higher inflation rate, Bogota is still overall a cheap location with low costs for a day out.

Another Latin American country came second on our list: San Jose, Costa Rica. San Jose has very similar costs to Bogota, but with a lower inflation rate. Two other Latin American cities also made the top ten: Mexico City, Mexico and Santiago, Chile.

Number three on the list is Seoul, South Korea. This East-Asian country boasts a high exchange rate at 1584.81 Korean Won to 1 Pound Sterling, as well as a low inflation rate of just 1%. A day out in Seoul will cost you an average of £158.58 – not bad!

Four European cities made the top 10

If you’d rather stick to Europe, there are plenty of budget-friendly cities to visit, including Lisbon, Prague and Vilnius. Our research revealed the Hungarian capital of Budapest as the cheapest European city for a day out, with very reasonable prices and a fairly high exchange rate of 452.23 Hungarian Forint to 1 Pound Sterling.

It is worth bearing in mind that the majority of European countries use Euros, and the exchange rate between Pounds and Euros is quite low. This means your money might not stretch as far as in other countries with higher exchange rates. 

The 10 most expensive cities for a day out

Our research revealed that Oslo, Norway is the most expensive city for a day out. Travellers heading to Norway can expect to spend more on a day out here than anywhere else, with an average spend of £416.56! 

Even the cost of a 0.5 litre draught beer in this holiday destination is the highest among all countries at £7.79. 

Here is the full list of the most expensive cities for a day out.

Rank	City	Exchange rate between £ (higher = better value)	Inflation rate (higher = potential higher costs)	Avg. cost of a hotel room for one night (£)	Avg. price for entertainment/ excursion (£)	Return ticket (local transport) (£)	Cost of 3 meals (inexpensive restaurant) (£)	Domestic beer (0.5 litre draught) in restaurant (£)
38	Oslo, Norway	11.78	0.007	195	157.45	6.66	49.77	7.68
37	Reykjavik, Iceland	163.83	0.021	248	117	6	45.87	7.34
36	Bern, Switzerland	1.23	-0.005	158	225	6.14	61.32	5.32
35	London, United Kingdom	1	0.015	325	69.1	5	51	5.85
34	Copenhagen, Denmark	8.85	0.004	199	182.15	5.44	47.58	5.66
33	Washington, United States	1.25	0.015	263	112.75	4	43.26	5.61
32	Dublin, Ireland	1.19	0.007	335	64.6	4.64	37.92	4.8
31	Helsinki, Finland	1.19	0.006	125	183.35	4.72	30.33	5.9
30	Stockholm, Sweden	12.36	0.006	121	120.45	6.32	31.65	5.68
29	Wellington, New Zealand	1.94	0.025	95	162.45	4.12	30.93	5.15

Nordic cities in general seem to be worth avoiding for travellers who want an affordable getaway, with Reykjavik, Copenhagen, Helsinki and Stockholm all making the list of most expensive cities for a day out. 

London, UK also ranks as the fourth most expensive city for a day out, so heading further afield for your holiday may actually save you money!

Five money-saving tips when planning your travels

Even if you choose to visit one of the ten cheapest cities on our list, there are still more things you can do to save money. Here are our top five money-saving tips for planning a day out, no matter where you’re travelling to.

• Travel by bus or train – Using public transport like a bus or train to get about is usually far cheaper than renting a vehicle or hiring a taxi, so you’re guaranteed to save money. Plus, it’s better for the environment!
• Always book in advance – When booking a place to stay, or even a local attraction, you can often save money by booking far enough in advance. Prices tend to hike if you leave it to the last minute, and some places will offer discounts if you book online rather than in-person. 
• Avoid popular dates like school holidays – As well as booking in advance, you can also save money by avoiding peak times such as bank holidays and school breaks. Prices are guaranteed to be higher during school summer holidays, so if you can plan to go during term-time instead you’ll save some cash.
• Avoid eating out for every meal – It’s tempting to eat at a restaurant or café for every meal on a day out, but it isn’t the most cost effective choice. You’ll likely save yourself a lot of money by pre-preparing at least one of your meals – lunch, for example – and bringing it with you for the day. 
• Invest in a guide book – Guide books are usually fairly cheap to purchase, and can be extremely useful when figuring out the best – and least expensive – attractions to visit. A guide book can point out more expensive tourist areas to be avoided, and recommend some cheaper options.

Full list of the 38 cheapest and most expensive cities for a day out:

Rank	City	Exchange rate between £ (higher = better value)	Inflation rate (higher = potential higher costs)	Avg. cost of a hotel room for one night (£)	Avg. price for entertainment/ excursion (£)	Return ticket (local transport) (£)	Cost of 3 meals (inexpensive restaurant) (£)	Domestic beer (0.5 litre draught) in restaurant (£)
1	Bogota, Colombia	5036.87	0.0386	47	56.83	1	9	0.8
2	San Jose, Costa Rica	831.11	0.0191	50	45.3	1.2	21.72	1.58
3	Seoul, South Korea	1584.81	0.01	64	73.3	1.64	17.1	2.54
4	Budapest, Hungary	452.23	0.039	99	57.5	1.54	18.57	1.44
5	Ankara, Turkey	18.57	0.1186	38	/	0.7	8.1	1.89
6	Mexico City, Mexico	25.4	0.0325	73	116.55	0.48	17.76	1.97
7	Santiago, Chile	1070.4	0.037	77	68.6	1.5	19.68	2.81
8	Vilnius, Lithuania	1.19	0.018	62	59.05	1.34	22.74	2.95
9	Lisbon, Portugal	1.19	0	143	34.25	2.52	25.29	1.69
10	Prague, Czech Republic	29.3	0.034	142	45.4	2.18	17.43	1.54
11	Tokyo, Japan	162.78	0.004	88	77.35	2.46	18.48	3.51
12	Warsaw, Poland	5.56	0.046	53	123.65	1.58	16.17	2.15
13	Riga, Latvia	1.19	0.014	75	59.7	1.94	25.29	3.37
14	Bratislava, Slovakia	1.19	0.023	70	178.9	1.52	17.7	1.69
15	Madrid, Spain	1.19	0	109	56.9	2.52	32.73	2.53
16	Tallinn, Estonia	1.19	0.009	80	56.55	2.52	30.33	3.79
17	Athens, Greece	1.19	0	115	80.1	2.02	31.59	3.37
18	Ljubljana, Slovenia	1.19	0.005	114	139.55	2.2	25.29	2.53
19	Berlin, Germany	1.19	0.014	108	39	5.06	25.29	3.37
20	Vienna, Austria	1.19	0.016	92	45.8	4.04	32.85	3.37
21	Brussels, Belgium	1.19	0.0062	84	115.75	3.8	37.92	3.61
22	Rome, Italy	1.19	0.001	177	109.7	2.52	37.92	3.37
23	Ottawa, Canada	1.6	0.009	130	47.25	4.5	37.47	4.37
24	Amsterdam, The Netherlands	1.19	0.014	255	64.95	0	42.96	4.83
25	Luxembourg, Luxembourg	1.19	0.009	124	185.25	0	48.03	4.21
26	Paris, France	1.19	0.007	208	51.95	3.2	37.92	5.48
27	Jerusalem, Israel	4.19	0	114	89.75	2.86	42.99	6.69
28	Canberra, Australia	1.76	0.018	141	89	3.66	39.3	5.69
29	Wellington, New Zealand	1.94	0.025	95	162.45	4.12	30.93	5.15
30	Stockholm, Sweden	12.36	0.006	121	120.45	6.32	31.65	5.68
31	Helsinki, Finland	1.19	0.006	125	183.35	4.72	30.33	5.9
32	Dublin, Ireland	1.19	0.007	335	64.6	4.64	37.92	4.8
33	Washington, United States	1.25	0.015	263	112.75	4	43.26	5.61
34	Copenhagen, Denmark	8.85	0.004	199	182.15	5.44	47.58	5.66
35	London, United Kingdom	1	0.015	325	69.1	5	51	5.85
36	Bern, Switzerland	1.23	-0.005	158	225	6.14	61.32	5.32
37	Reykjavik, Iceland	163.83	0.021	248	117	6	45.87	7.34
38	Oslo, Norway	11.78	0.007	195	157.45	6.66	49.77	7.68

Sources & Methodology

• OECD member countries were used: https://www.oecd.org/about/document/ratification-oecd-convention.htm
• Currency conversion: Google currency converter
• Inflation rate: https://worldpopulationreview.com/country-rankings/inflation-rate-by-country
• Cost of meal / domestic beer / local transport : https://www.numbeo.com/cost-of-living/ – local currency was converted using the conversion rate in column D (Google finance 04/05/2022) – for cost of three meals, 1 meal is multiplied by 3 – for cost of a return ticket, 1-way is multiplied by 2
• Cost of a hotel room: https://www.booking.com/ – 11 to 12 June 2022 was taken for two adults. First 25 results are scraped and an average is taken
• Cost of entertainment/excursions: https://www.musement.com/uk/search/ – The first page of the website was scraped to find the average price