Europe's traditional summer hotspots are facing headwinds, with overtourism, soaring airfares and the rollout of the EES system causing queues and delays. July flights from the US to Europe are down more than 11% from last year, with significant drops to Paris, Dublin and Rome. However, this does not mean travellers are shunning the continent; rather, they are becoming more selective, with searches for smaller cities up 35% globally, according to Rome2Rio's 2026 Travel & Mobility Trends Report.
Travel experts say people still crave the Italian or French atmosphere but without the crowds. "Croatia is a good example, especially if you step beyond Dubrovnik," said Bryce Collins of INTRO Travel, citing Korčula's Venetian architecture and Adriatic coastline. Bryan Lewis of Tenon Tours noted that rising costs and travel fatigue are pushing Americans towards immersion rather than multi-stop itineraries. As a result, several smaller European countries are looking newly attractive. Albania, Latvia and Lithuania all have average short-term rental prices below €100 (£87) a night, according to PriceLabs. Dinner for two at a smart-casual restaurant in these countries typically costs between €50 and €70.
Slovenia stands out as a compact alternative, roughly the size of Wales, with mountain views, lake swims and wine tastings within a few hours' drive. Luxury operator Unforgettable Travel Company has seen a 286% year-on-year rise in bookings, with the country about 15% more affordable than Austria and 25% more than Switzerland, according to its global director, Charlotte Wells. Monya Mandich of Rome2Rio adds that Ljubljana's river-lined old town resembles Venice, while Bohinj and the Soča Valley offer peaceful alternatives to Lake Como.
Latvia offers a Nordic-style city break without the Nordics' price tag. PriceLabs data show an average August room night in Latvia at €93 (£80), compared with €186 in Denmark. Expatistan figures put Riga 34% cheaper than Berlin, 50% cheaper than Oslo and 46% cheaper than Dublin. Visitors often come back praising Riga's scenery as well.
These destinations are not the only ones delivering value. Croatia's Korčula provides a slower-paced alternative to Dubrovnik with similar Venetian charm. The European Travel Commission has noted a growing interest in less-crowded experiences, and with short-term rentals still under €100 in Albania, Lithuania and Latvia, there are plenty of options for travellers seeking more for their money in summer 2026.
