UK holidaymakers seeking a bargain Christmas market break should head to the Baltic states, new research reveals.

Lithuania's capital, Vilnius, was found to offer the lowest price for a two-night trip for two, among 15 European destinations analysed by Post Office Travel Money.

Riga, in neighbouring Latvia, secured the second spot.

The study factored in costs such as return flights, bed and breakfast accommodation, and meals and refreshments at the markets.

Prices have fallen in about half of the destinations included in the study, despite sterling's fall in value against European currencies over the past year.

Denmark's Copenhagen was found to be the most expensive destination, with the basket of goods being more than twice as expensive there compared with Vilnius.

Two three-course meals for two with a bottle of wine typically costs £305 in Copenhagen and just £138 in Vilnius, according to the study.

Germany's Berlin has risen from 11th place last year to take the eighth spot, as costs for flights and accommodation are down 22 per cent.

It is the "best value western European city surveyed", Post Office Travel Money said.

By contrast, Czech Republic capital Prague dropped from fifth spot to 13th because of a near-50 per cent increase in prices.

Laura Plunkett, head of travel money at Post Office, said: "A short break to one of Europe's colourful Christmas markets is an attractive holiday option at this time of year.

"However, sterling's drop in value is an important factor for travellers to consider before booking a trip because this varies between currencies.

"The pound's fall against the euro is smaller than against other European currencies - 5.0 per cent compared with 10.6 per cent against the Hungarian forint and 10.9 per cent against the Swedish kronor.

"Budget-conscious travellers stand to save hundreds of pounds if they choose carefully."