Is Italy Still Worth It in 2026? Why the Numbers Say Yes
Headlines about the weaker dollar have spooked some travelers into shelving their European plans for 2026. But a closer look at the data tells a different story & the fundamentals point firmly in one direction: Italy remains one of the smartest vacation investments an American family can make.
Yes, the dollar has weakened — down approximately 12.5% against the euro year-on-year. But that figure needs to be weighed against the broader financial picture for American households. Over the same twelve-month period, the S&P 500 is up around 10%, the Dow Jones has gained 13%, and the Nasdaq has surged 17%. For many US travelers, their investment portfolios have more than offset the currency shift. American purchasing power abroad has held up far better than the headline exchange rate suggests.
The current rate of approximately $1.18 to the euro is broadly in line with the 20-year historical average, and the dollar still commands significant purchasing power in Italy — a country where inflation has fallen to just 1.0%, a 15-month low and less than half the current US rate of 2.9%. While American households have absorbed a cumulative 26% increase in the cost of living since 2020, Italian prices have remained comparatively stable. The everyday costs that shape the texture of a vacation — a morning espresso, a bottle of wine, a basket of fresh produce at the market — remain remarkably affordable by any Western standard.
An espresso at an Italian bar costs $1.40–$1.70 (vs. $5.00–$7.00 in a US city). A cappuccino runs $1.80–$2.95 (vs. $5.50–$7.50). Add a fresh pastry and you’re looking at $2.50–$3.50 for a complete Italian breakfast — the price of a single drip coffee in Manhattan. A full trattoria meal with wine — antipasto, primo, secondo, and a glass or two — costs $25.00–$40.00 per person. The equivalent experience at a quality Italian restaurant in the US runs $50.00–$90.00, and easily exceeds $100 in New York.
Here is a fact that may surprise travelers who assume Europe is simply “more expensive now”: Italy is the only major tourism destination in the world where hotel rates are actively declining. According to market intelligence data from Lighthouse (Q4 2025), average Italian hotel rates fell 5.7% year-on-year in 2025. Summer 2025 rates dropped even further, down 8.1% versus the prior year.
The luxury segment has seen the sharpest adjustment. Five-star hotel rates in Italy fell by as much as 25% year-on-year in June 2025 — a dramatic correction bringing Italian luxury accommodation back toward more sustainable levels. This is not a sign of weakening demand; it is the market recalibrating after post-pandemic price inflation that had pushed rates to unsustainable highs. Compare this with the rest of the world: Austria’s hotel rates rose 8.2%, Greece climbed 6.7%, Croatia gained 8.2%, Iceland surged 19.5%, premium Swiss resorts like Zermatt jumped nearly 30%, and Paris increased 12.3%. In the United States, the average daily rate hit a record $162 in 2025, and five-star properties in North America now average $456 per night — nearly double the global five-star average of $235.
The arithmetic is straightforward. A luxury five-star hotel on the Amalfi Coast or Lake Como typically charges $800–$2,000+ per room, per night during peak season. For a multigenerational family or a group of friends traveling together — say, eight to twelve guests — the hotel bill for a two-week stay can easily exceed $150,000 to $250,000. A comparable private villa — with equal or superior amenities including private pools, expansive gardens, dedicated staff, and often a far more exclusive setting — typically costs a fraction of that figure. Where a group of ten might require five luxury hotel rooms at $1,200 per room per night ($6,000 nightly, $84,000 for two weeks), a stunning private villa accommodating the same group might cost $3,000–$5,000 per night — a saving of up to 50%.
But the savings extend well beyond the nightly rate. Hotels layer on charges that inflate the total cost considerably: resort fees, parking, minibar markups, spa surcharges, and — critically — the cost of dining.
In-Villa Dining: The Hidden Economic Advantage of a Private Chef
Restaurant dining in Italy remains excellent value by international standards — a full meal at a quality trattoria still costs €15–25 per person. But dining out every meal for a large group over two weeks adds up considerably, and it is here that the villa model delivers its most compelling savings.
Private chef dining in a villa eliminates the invisible costs of eating out. There is no corkage fee — guests bring their own wine, purchased at supermarket or enoteca prices (an excellent Tuscan Chianti Classico costs €10–18 at retail versus €35–60 on a restaurant wine list). There is no charge for water, no cover charge, no service charge, and no €3–5 per cup for post-dinner espressos. For a table of ten, those “extras” alone can add €80–120 per meal.
Over the course of a two-week stay with a group of ten, the savings on wine alone can run into the thousands. Buy a case of excellent local wine for €80–150, versus ordering individual bottles in restaurants at four to five times the retail price.
Self-Catering in an Italian Villa: How Fresh Produce Prices Compare to the US
Italy’s villa kitchens are not an afterthought. They are designed for cooking — professional-grade appliances, outdoor barbecue areas, wood-fired pizza ovens, and herb gardens. Combined with Italy’s extraordinary fresh produce, self-catering for some meals is not a compromise; it is an enhancement of the experience.
A visit to a local market reveals prices that would astonish most American shoppers. A pound of ripe seasonal tomatoes costs around €1–1.50. Fresh buffalo mozzarella runs €4.50–5.50 per pound. A liter of premium extra-virgin olive oil is €8–15. A large loaf of freshly baked bread is about €2. A pound of fresh pasta from a local pastificio is €1.50–2. Even accounting for the exchange rate, these prices significantly undercut equivalent products at a Whole Foods, Eataly, or similar US retailer.
Breakfast alone illustrates the point. A family of eight can enjoy fresh pastries, fruit, yogurt, locally roasted coffee, and freshly squeezed orange juice each morning for a total daily cost of perhaps €15–20 — less than a single hotel breakfast would cost for one person at many luxury properties.
Best Value Italian Regions: Where Your Dollar Stretches Furthest in 2026
Best value regions:Puglia, Sicily, and inland Tuscany consistently offer the strongest value proposition. These regions combine world-class cuisine, stunning landscapes, and rich cultural heritage with prices that sit 20–40% below Italy’s most fashionable coastal destinations. A beautifully restored masseria in Puglia or a hilltop villa in the Val d’Orcia delivers an experience every bit as memorable as the Amalfi Coast — at a fraction of the cost.
Premium regions:Lake Como, the Amalfi Coast, and Sardinia’s Costa Smeralda command higher prices, driven by scarcity of luxury inventory and global demand. However, even in these sought-after areas, the villa model still delivers substantial savings versus equivalent hotel stays. For travelers who have their heart set on these iconic destinations, a villa remains the most economically rational way to experience them at the highest level.
Travelers who are flexible on region can enjoy extraordinary villa experiences at surprisingly accessible price points — without sacrificing any of the hallmarks of a luxury Italian vacation.
New US–Italy Flights for 2026: More Routes, More Competition, Lower Fares
The 2025–2026 period has seen the most significant expansion of US–Italy air connectivity in aviation history, directly benefiting travelers through increased competition and downward pressure on fares.
Confirmed new and returning routes for summer 2026 include: United Airlineslaunching nonstop Newark–Bari (the first-ever US nonstop to Puglia) and continuing Newark–Palermo; Deltaintroducing the first-ever nonstop JFK–Olbia, SardiniaSardinia; American Airlines offering Miami–Milan, returning Chicago–Naples and Dallas–Venice, with a record 18 daily flights to Italy and Greece; Alaska Airlines launching its first transatlantic route with Seattle–Rome; JetBlue adding Boston–Milan; and ITA Airways connecting Houston–Rome for the first time.
This explosion of route options means more departure cities, more destination airports across Italy, and greater schedule flexibility. Travelers booking well in advance now have viable nonstop options from the East Coast, Midwest, Southeast, Texas, and Pacific Northwest — many for the first time.
The Investment Case for an Italian Villa Vacation in 2026
At Essenza Escapes, we think about luxury travel the way a thoughtful investor thinks about capital allocation. When you commit $30,000–$100,000 to a family vacation, the question isn’t just “where do we go?” — it’s “where will our investment deliver the greatest return?”
By almost any measure, Italy answers that question decisively. No other destination combines 3,000 years of unbroken cultural heritage, the world’s most celebrated cuisine, landscapes of staggering diversity — from Alpine lakes to Mediterranean coastline, from rolling vineyards to volcanic islands — and a quality of everyday life that makes every moment feel unhurried and intentional.
A vacation in Italy is not a depreciating asset. The memories, the experiences, the family moments around a long table under a pergola with a glass of local wine and a view of ancient olive groves — these appreciate over time. They become part of your family’s story. And in a world where inflation is eroding the value of almost everything, that’s a return worth investing in.
The dollar may be softer, but the value proposition remains rock solid. The numbers support it. The experience confirms it. And the memories will prove it.
