- Iceland will be the most costly destination for U.S. travelers in 2025 according to a new study.
- Iceland’s high cost of living and high inflation rate have contributed to the high costs.
- Australia and Mexico were the two most expensive destinations for Americans.
The cost of international travel can be high, but there is one European destination that Americans find the most expensive.
Iceland According to a study conducted by The Forex Complex and shared with, the country was named as the most expensive tourist destination in 2025. Travel + Leisure. The financial trading company evaluated the costs of 19 international destinations. Iceland had the highest average daily cost, at more than 400 dollars.
Iceland’s inflation rate, at 5.5 percent, adds to overall costs in hotels, transportation, and food.
Currency fluctuations can drastically alter travel costs in countries that have stable prices. The Forex Complex spokesperson said that while daily expenses dominate the perception of affordability for Americans, exchange rate fluctuations can make or breaking a vacation budget. “Travelers who don’t pay attention to currency trends in 2025 may find themselves with a more expensive summer than they expected.”
The second most expensive destination was Australia Where daily vacation expenses were approximately $280 per person. Inflation in Australia is relatively low—just 2.4 percent—but costs remain high.
Mexico Third place on the list was due in part to the strong increase of 6.4 per cent in the Mexican peso against the dollar. It increases the cost of travel for Americans and can offset the relative low costs that would make Mexico a budget-friendly destination.
Popular destinations for American tourists Europe—like the United Kingdom, Germany, and Italy— now cost less thanks to more favorable exchange rates, but high daily prices still keep them in the top 10. The UK ranked No. Germany was ranked No. Italy ranked at No. 10.)
Thailand was the least expensive country in the study, with an average daily spend of only $81.87. The Thai baht is also weaker than the U.S. Dollar. Indonesia was ranked second in terms of affordability, with a daily cost of $70.23, but its 1.95 percent inflation rate made it difficult to compare.
Forex Complex used three factors to determine the results: the average daily costs of tourism in U.S. Dollars, the local rate of inflation, and the change from year to year in the strength of the destination’s currency compared with the dollar. The study included several expenses such as the cost of accommodation, transportation, and meals.
