One Of The Cheapest Beach Destinations In Europe Is An Island Retreat With Great Night Life

European travelers are booking sun and beach holidays at record rates in 2025, even with travel costs climbing. According to the European Travel Commission, searches for spring getaways to sunny spots jumped 36% year-over-year among European travelers in 2025. Major Mediterranean markets like Spain saw arrivals rise 7%. But according to Euronews, European package holidays shot up as much as 11.5% in 2025. Those higher prices are driving many travelers toward shoulder-season vacation booking strategies, when rates typically drop and crowds thin out. 

Spain used to be one of the best affordable countries to retire abroad. Now it's leading the price surge. All-inclusive trips average £914 (about $1,238) per person, up from £835 (about $1,131) in August 2024, according to Travel and Tour World. Families have to think seriously about what percentage of their household income should go toward vacation splurges. There's a peculiar exception to all this though — Ibiza. Most people think of the Balearic island for superstar DJs and fancy nightlife, not cheap holidays. 

Carthaginian settlers founded this Balearic Island story way back in 654 B.C as a trading hub, establishing a tradition of welcoming visitors from across the Mediterranean that continues today — just with better Wi-Fi and world-class DJs.

Ibiza's an easy place to enjoy yourself without running through your cash. The Ajuntament d'Eivissa (Ibiza Town Council) keeps Dalt Vila open for free all year — it's a UNESCO spot with old walls, plazas, and views that anyone can wander through, no tickets needed. That kind of freedom stands out, particularly since European tourist traps can quietly drain a budget if you're not careful.

The beaches work the same way. Places like Cala Comte and Cala Bassa have Blue Flag status – they hit all the strict international standards for clean water and safety. Everyone is welcome with free entry year-round. According to Ticket Market Ibiza 2024 data, rentals and water sports incur fees — €7 (about $10) each for a sunbed or umbrella, €20 (about $27) per hour for a pedal boat, and €15 (about $20) per hour for a kayak. But general swimming, sunbathing, and walking are free to everyone. Just bring some cash for those beach kiosks, and be sure to avoid those fee-heavy independent ATMs scattered around that will eat into your travel budget.

Nightlife doesn't have to drain you either. According to Tickets Ibiza, buy club tickets online ahead of time and save €20 to €30 (about $27 to $40) compared with paying at the door. The savings pile up fast if you're trying out multiple clubs. The big superclubs aren't your only option. The municipality-backed Ibiza Global Festival throws multi-day seaside raves with free admission.

If you're trying to decide between a vacation rental or hotel, you'll want to crunch the numbers. Budget Your Trip found that budget hotels in Ibiza run about $83 a night on average. High season pushes that up to around $155, with a median price of $81. Don't forget the Balearic Islands tourism tax either — according to the Balearic Tax Agency (ATIB), it's per person, per night, and runs anywhere from €0.25 to €4 (about $0.34 to $5.42) depending on where you stay and the season, plus a 10% VAT.

For food, avoid overpriced restaurants targeted to tourists. Instead, hunt down local places that do "menú del día" — the daily set menu that locals actually eat. You'll spend less and get real food. Ibiza's "menú del día" typically costs €10 to €18 (about $14 to $27), according to Ibiza Inside. You get a starter like salad or soup, a main with meat, fish, or rice, dessert or coffee, bread, and a drink — water, wine, or soda — all for one fixed price at a bunch of neighborhood restaurants. This approach can keep daily meal costs under $30 per person.