Backpacker travel insurance customers may be among those flocking to Berlin for a low-priced city break.
According to online travel firm Expedia, British tourists are attracted by the idea of a Western European city with Eastern European prices.
Jonathan Cudworth, director of product management for the company, said: "It's a city that seems to be very popular along with other Eastern European cities like Riga in Latvia and Tallinn in Estonia."
He added that Britons are increasingly looking for destinations where they can get more for their money, as the economic crisis brings down hotel and flight prices.
Latest figures from the Hotels.com Hotel Price Index reveal rates across Europe are cheaper than they were in 2004.
Berlin has seen a 26 per cent price drop year on year, with an average room costing around £74, compared to £99 in 2008.
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