Why does the same coffee cost €3 in Berlin, $7 in Toronto, and almost $9 in Zurich — when each country is counted among the world’s richest?

Introduction: Same Product, Different Story

You walk into a store abroad, see a price tag, and think you know what you’ll pay — until the bill arrives.
In some countries, the amount on the tag is exactly what you hand over. In others, taxes, service fees, and even “market adjustments” get added later.
This isn’t just about economics — it’s about cultural attitudes toward transparency, the structure of local markets, and the balance of power between businesses and customers.

1. How Prices Are Shown: Tax-Inclusive vs. Tax-Exclusive

• EU, UK, Australia – Prices on shelves almost always include taxes (VAT or GST). A €50 sweater in Berlin costs €50 at the till — no surprises.
• Canada, U.S. – Shelf prices usually exclude sales tax, which is added at checkout. A $50 sweater in Toronto can become $56.50 with 13% HST (Ontario).
• Japan – Both styles exist. Some stores show tax-inclusive prices, others show both inclusive and exclusive prices side by side.

Cultural takeaway:

In tax-inclusive countries, transparency is seen as a trust factor — what you see is what you pay. In tax-exclusive countries, the logic is that “consumers should know taxes exist,” but it shifts the mental calculation onto the buyer.

Hidden fees:

In some countries, hidden fees can make the final price much higher than expected. North American hotels may add “resort fees” after booking, while some car rental agencies add compulsory insurance at pickup. In the EU, many of these add-ons must be disclosed upfront under consumer law.

Case study: one coffee, six countries

     Coffee (Regular Latte/Flat White)

• Berlin, Germany: €3.20 (~CAD $4.70)
• Toronto, Canada: CAD $6.50–$7.00
• Tokyo, Japan: ¥480 (~CAD $4.35)
• Zurich, Switzerland: CHF 6.00 (~CAD $9.25)
• U.S. – A regular latte in New York City averages USD $5.50–$6.50 before tax
• Vietnam – In Hanoi, a café latte is typically USD $2–$3, showing how lower wages and market costs can make daily expenses a fraction of those in high-income countries.

While a Zurich coffee might not shock a Swiss professional, it’s noticeably higher than in many other high-income countries — and for travelers on a budget, such differences add up quickly.

Those numbers aren’t random — they reflect each country’s tax policy, wage levels, cost structures, and even how much price transparency is culturally expected.

Seasonal price surges:

In some destinations, prices for hotels, flights, and attractions can rise sharply during peak tourist seasons or holidays. In parts of Europe and Japan, certain seasonal increases are regulated and predictable — such as fixed shinkansen ticket rates or capped holiday surcharges. In North America, however, hotel and flight prices often surge freely, sometimes doubling or tripling during major events or holidays.

Did you know?
In some EU countries, charging hidden fees without clear disclosure can result in fines of up to €50,000 — while in Canada, similar fees are often allowed if mentioned somewhere in the contract’s fine print.

2. When the Same Salary Buys Less — or More

Not all high-income countries offer the same value for money. In some places, salaries may look similar on paper, but everyday costs can eat away at purchasing power much faster.

• Example: A mid-level professional in Canada earning CAD $60,000 may pay far more for groceries, telecom services, and housing than someone in Germany earning the same amount in euros.
• Example: In Switzerland, wages are among the highest in the world — but so are rents, restaurant meals, and health insurance, leaving many with less disposable income than peers in lower-cost EU countries.
• Example: In Japan, certain services like public transport are world-class and affordable, but imported goods and fresh fruit can cost several times what they do in neighbouring countries.

Real-world price comparisons:

      Big Mac Meal

• Zurich, Switzerland: ~CHF 15 (~CAD $23.10)
• Berlin, Germany: ~€9 (~CAD $13.25)
• Toronto, Canada: ~CAD $15–$16
• New York City, U.S.: ~USD $10–$12 (~CAD $13.50–$16.20)
• Hanoi, Vietnam: ~USD $4.50–$5 (~CAD $6–$6.75)

      1 GB Mobile Data (Prepaid)

• Canada: ~CAD $14–$16 (one of the highest globally)
• Germany: ~€3 (~CAD $4.40)
• Japan: ~¥500 (~CAD $4.50)
• United States: ~USD $3–$5 (~CAD $4–$6.75) depending on provider and region 
• Vietnam: ~USD $0.50–$1 (~CAD $0.65–$1.35), among the cheapest globally

Currency shifts and psychological pricing:

Exchange rates can make a country feel drastically more or less expensive almost overnight. A strong Canadian dollar might make a European trip more affordable one year and far pricier the next. For locals, the opposite can happen — imported goods may suddenly cost more if their currency weakens. Pricing psychology also plays a role: €9.99 feels cheaper than €10 in Germany, but in Japan, round numbers are often preferred for a perception of honesty.

Tip: Use a live currency converter such as XE.com or OANDA before traveling to get a real-time sense of how far your money will go.

Why this happens:

• Local taxation systems (income tax vs. consumption tax).
• Import costs (small or remote countries often pay more for goods).
• Market competition — in some countries, certain industries operate as monopolies or near-monopolies, allowing prices to stay high without competitive pressure.
• Cultural expectations (in some countries, high housing costs or telecom bills are accepted as the “norm”).

Cultural takeaway:

A country’s GDP per capita or average salary doesn’t tell the full story. For travelers, expats, and even locals, the real question is not “How much do you earn?” but “How much can that money actually buy?”

3. Shopping Habits: Daily Fresh vs. Bulk Buys

• France, Italy, Japan – Strong daily shopping culture. Small purchases, frequent visits to markets, and a focus on freshness.
• U.S., UAE, Canada – Bulk buying is common. Large supermarkets, warehouse clubs like Costco, and “stock up while it’s on sale” mentality.
• Morocco, Turkey, parts of Southeast Asia – Haggling is part of the culture; prices are fluid, and negotiation is expected.

Cultural takeaway:

Shopping habits shape what “good value” means. In bulk-buy cultures, discounts drive trust. In daily-shop cultures, freshness and quality build loyalty.

4. Beyond the Store: Service Transparency Across Borders

Case in Point: Bell Canada and the Bill That Wouldn’t Stay Still

In Canada, some telecom providers can raise rates even during a fixed-term contract. One Bell customer signed up for a $156 monthly plan and was told the contract would be sent by email — it never arrived, and no printed copy was provided. Within months, the bill began increasing by $10 at a time, and on some occasions spiked by as much as $300 compared to the original amount, even though the plan and services never changed.

Each time the customer called to complain, Bell lowered the amount temporarily, only to raise it again the following month. When questioned, representatives explained that “it’s the system” and that prices are displayed in the customer’s online account — meaning that with a single click, the tariff could be increased in the account without regard for the original contract terms or any direct notification to the customer. Despite the missing contract and repeated price changes, there was no government intervention.

When the customer tried to switch to another provider, Bell charged over $800 in early termination fees — effectively locking them in. In many Canadian regions, the telecom market operates as a near-monopoly, dominated by a few major providers. With little genuine competition, customers face limited alternatives — and “switching” often just means moving between equally restrictive options, sometimes with extra transfer or activation fees that can reach $200. In many EU countries, switching providers is free or strictly regulated, making such charges far less common or even prohibited.

This is exactly the kind of fee practice that would be illegal in much of the EU but remains common in Canada’s telecom market.

Car Insurance: The Other Price Maze

In provinces like Quebec and Ontario, car insurance can be just as unpredictable. Even drivers with spotless records may see rates climb for reasons unrelated to accidents — such as owning a newer car or simply living in a high-rate postal code

• Quebec: Many urban drivers pay $120–$200/month, with newer cars or certain postal codes pushing it higher.
• Ontario: Premiums are among the highest in Canada, with many city drivers paying $180–$250/month or more.

For some drivers, the yearly total can rival the price of a modest used car.

Unlike in many EU countries, where insurance formulas are more standardized and increases are tightly regulated, and average premiums are often far lower, Canadian drivers often have to shop around or negotiate through brokers — a process that often mirrors the uncertainty of price bargaining. The result: two people with identical driving histories can pay vastly different amounts for the same coverage, and “switching” insurers can still involve cancellation penalties or the loss of loyalty discounts that add hundreds to the cost. In much of the EU, switching is generally free and actively encouraged to increase competition.

A Modern Service Market That Feels Like an Old Open Market

Whether it’s telecom contracts or car insurance quotes, Canadian consumers often find themselves bargaining, comparing offers, and chasing temporary deals — much like navigating an old open market. The difference is that here, the “vendors” are multi-billion-dollar corporations, and the prices can shift without the buyer ever setting foot in a marketplace.

Note on “Official” Price Data:

Government and industry reports often publish average telecom and car insurance rates, but these figures rarely reflect real consumer experiences. They may exclude temporary surcharges, location-based price differences, and broker-negotiated deals — all of which can push actual costs far above the official averages. For many Canadians, the numbers they see in reports feel like they describe another country entirely.

For more information on your rights, see the Government of Canada’s Wireless Code overview and the Commission for Complaints for Telecom-television Services (CCTS).

5. Why This Wouldn’t Happen in Germany or the EU

In Germany and much of the EU, telecom and service contracts operate under far stricter consumer protection laws:

• Providers must give you a written contract in a durable format (printed or provable digital copy).
• Prices are locked for the full contract term unless the customer agrees to a change.
• Any mid-term price increase automatically gives the customer the right to cancel without penalty.
• Early termination fees are capped and cannot be used to keep customers after a change in terms.

(Reference: EU Consumer Rights Directive)

In other words, the kind of monthly price creep and $800 penalty seen in the Bell case would not survive EU legal scrutiny.

Cultural reactions:

How consumers respond to price changes varies widely. In Germany and much of the EU, even small increases often trigger formal complaints or contract cancellations, backed by legal rights. In Canada, gradual increases are more likely to be tolerated, partly because alternative providers are limited. In Japan, customer loyalty runs deep — but it is paired with an expectation of consistent service quality and reliability.

Free vs. paid services:

Some destinations offset higher prices by offering valuable public services at no charge — such as free national museums in the UK or free public transport in Luxembourg. Others, including many North American cities, charge significant fees for similar attractions or amenities. For travelers, these differences can influence not just costs, but how much they experience during their stay.

6. Consumer Protection: Who Holds the Power?

• EU – The Price Indication Directive (98/6/EC) requires full, final prices (including all taxes and fees) in ads and displays. Consumer agencies actively monitor and fine companies for hidden charges.
• Canada – Consumer protection varies by province, but telecom pricing falls under CRTC oversight, which focuses more on disclosure than on preventing mid-term increases.

Example of enforcement:

• In 2022, the German Federal Network Agency fined a provider for changing rates without customer consent — affected customers could exit contracts immediately.
• In Canada, customers affected by mid-term increases often have to pay early termination fees unless they negotiate individually.

Official Sources:

• European Commission – Consumer Rights
• Government of Canada – Consumer Protection

7. Tips for Travelers and Expats

• Check if taxes are included in displayed prices before budgeting.
• Ask about contract change rules before signing up for mobile, internet, or utilities abroad.
• Keep printed contracts and receipts — in the EU they’re powerful legal tools.
• Know refund schemes (VAT refunds in the EU, GST refunds in Australia) for eligible tourists.
• Understand local market structure — if an industry operates as a monopoly or near-monopoly, expect fewer choices and less pricing flexibility.

Traveler Strategy Tips

• Use local price-comparison or grocery apps to spot the best deals.
• Always confirm the full final price before booking hotels or activities — including taxes, service charges, and resort fees.
• Buy SIM cards or data packages in advance when visiting high-cost telecom countries.
• If possible, travel slightly outside peak tourist seasons to avoid seasonal surges.

Key Takeaways

• Price display rules and taxes can make the same product cost more or less depending on the country.
• Purchasing power varies widely — high wages don’t always mean more value.
• Monopolies and weak regulation can keep prices high and limit consumer choice.
• EU consumer laws generally protect price stability more strongly than Canadian rules.

Why It Matters for Travelers

Understanding how prices are displayed, when they change, and how people react to them can save travelers from costly surprises. From budgeting more accurately to choosing destinations with better value for money, these insights can influence everything from your daily spending to which country you visit next. For long-term stays or relocations, knowing the local consumer protection culture can be as important as knowing the exchange rate.

And remember: pricing isn’t purely financial — it’s also psychological. The way prices are shown can make a destination feel cheaper or more expensive, even if the actual cost difference is small.

Traveler Reality Check

• Your $80 hotel room might cost $95 after resort fees and taxes.
• In some countries, water at restaurants is charged by the bottle — no free tap refills.
• Taxi prices can double at night or on holidays without notice.
• Prepaid mobile data can be up to 5× more expensive if bought at the airport instead of in town.

Global Patterns in Pricing

Across the world, countries with strong competition and strict consumer protection tend to have more stable prices, while markets dominated by monopolies or near-monopolies see higher and more unpredictable costs. Wealth alone doesn’t guarantee affordability — it’s the combination of economic structure, culture, and legal protections that shapes what you really pay.

Final Thoughts

The same product or service can feel more expensive — or cheaper — depending on how it’s priced, taxed, and protected by law.
For travelers and expats, understanding the culture and rules behind the numbers is as important as knowing the exchange rate.

In countries where transparency is the norm, prices build trust. In others — particularly where monopolies dominate and consumer protection is weaker — the burden falls on the consumer to stay vigilant, read the fine print, and sometimes fight for the deal they thought they already had.

Think your country is the cheapest — or most expensive — for everyday items? Compare your costs with our examples and tell us where it ranks.

Have you experienced surprising price differences while traveling? Share your story in the comments or on our social channels — your insight could help another traveler save money.

Read More on Curianic:

• Same Trip, Same Price — But Not the Same Respect – How booking methods and traveler identity can change the experience you get for the same money.
• What We Learn When We Cross Borders — Lessons That Stay – Cultural insights and habits that stay with you long after the trip ends.
• Top Tourist Destinations with Hidden Risks for Women and Families (2025 Guide) – Popular spots that come with safety challenges you should know before you go.

Editor’s Note

This article combines factual reporting with comparative analysis and commentary on public-interest topics such as cost of living, consumer rights, and market practices. All examples and figures are based on verifiable information available at the time of publication. It is intended solely for informational purposes and is presented as fair comment and free expression on matters of public interest.