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As prices continue to soar in many of Europe's most popular hotspots, travellers are increasingly finding that a simple holiday is coming with an unwelcome sting in the tail. From soaring hotel rates to rising restaurant bills, the cost of travelling abroad is putting pressure on household budgets.

Luckily though, it's not all bad news, because there are still several destinations where prices remain reassuringly low, offering holidaymakers the chance to enjoy sunshine, culture and great food without breaking the bank. In fact, a new analysis by Ferrygogo has revealed the cheapest destination for a pair to sit down and enjoy a three-course meal. The research looked at the average cost of a three-course dinner for two at a mid-range restaurant, excluding drinks, across the continent.

The analysis revealed that Kosovo, a small, landlocked country in Southeast Europe bordered by Albania, Montenegro, Serbia and North Macedonia, was the cheapest destination. Here, the average cost of dining out for two is just €20 (£17.35).

Kosovo is often called "Europe's newest country," and it's a perfect choice for travellers who love Ottoman architecture, rugged mountain trails and a vibrant coffee culture. It's affordable, safe and still feels like a hidden gem compared to its neighbours. Often called the "open-air museum," Prizren is the most picturesque city in Kosovo. Despite being nowhere near the sea, it feels very Mediterranean with its red-tiled roofs and cobblestone streets.

If you want to experience an authentic Balkan bazaar, head to Gjakova. One of the oldest and longest bazaars in the Balkans is the Grand Bazaar (Çarshia e Madhe), filled with artisan shops, traditional woodworkers, and cosy tea houses. Finally, the Terzi Bridge is a magnificent 18th-century Ottoman structure located near the village of Bishtazhin, just outside Gjakova. Spanning across the Erenik River, it remains one of the most significant examples of Ottoman bridge engineering in the Balkans.

As an added bonus, Kosovo uses the Euro, even though it is not an EU member.

Southeastern Europe is clearly the place to be for the continent's lowest prices, with North Macedonia ranking second-cheapest, where diners can secure a meal there for as little as €24.38 (£21.15). Moldova followed in third, with restaurants there charging around €30.32 (£26.30). Serbia, Bulgaria, the Czech Republic, Romania and Albania all ranked as impressively affordable too.

At the other end of Ferrygogo's analysis was Switzerland, with a meal for two averaging at €107.24 (£93.04). Denmark, Luxembourg and Norway followed with €93.69 (£81.21), €90 (£78.08) and €89.86 (£81.29), respectively. The average price of a three-course meal for two in the UK came to approximately £65 (€74.92).

Looking specifically at cities, Lugano and Zug in Switzerland were the priciest at €160.86 (£139.56) for a meal for two. Zurich followed with €128.69 (£111.65).