Have you ever dreamed of embarking on a world-traveling adventure but been daunted by the seemingly exorbitant costs? Fear not, for I, a budget-conscious backpacker myself, have journeyed to numerous countries and can attest that it is indeed possible to explore on a shoestring. In this article, I’ll share with you the most affordable vacation spots I’ve discovered during my travels. So, whether you’re looking to stretch your budget or simply discover hidden gems, read on to discover the cheapest vacation destinations around the world.
Cheapest Vacation Destinations in America
Mexico
You’ve likely heard a great deal about Mexico and its natural wonders. Perhaps you’ve even visited the renowned Riviera Maya, only to be slightly disappointed by its pricier reputation. Don’t worry! If your budget is tight this year, you might not have explored the right places. Mexico is a treasure trove of extraordinary destinations, and it can indeed be a budget-friendly country if you know where to look. From lodging to food, in its least expensive cities, you can survive on as little as $15 per day in a hostel setup. So, yes, you can indeed travel to Mexico on a budget. In general, some of the cheaper spots in Mexico include the states of Chiapas, Mexico City, Oaxaca, and Guanajuato. The food in Mexico is incredibly diverse, and you can find affordable options in typical “fondas” or “taquerias,” allowing you to fully immerse yourself in the authentic Mexican experience. Don’t come to Mexico expecting the same comforts you’re used to at home; instead, embrace the local way of life, and you’ll be surprised by how affordable it can be.
The average price of hostels: 9 USD
The average price of a meal: 3 USD
Planning a trip to Mexico? Don’t miss out on our list of the best places to visit in Mexico and our ultimate NFCVB Mexico travel guide. And there are also countless volunteering opportunities waiting for you in Mexico!
Paraguay
This country should definitely be on this list because we’ve likely heard that its capital, Asuncion, is sometimes referred to as the “cheapest city in the world.” And it’s true! Even its most luxurious hotels don’t typically exceed $120 (and that’s for the top-tier ones). So, imagine how much you could spend on more affordable accommodations. For foodies, you can enjoy a meal in a local place for as little as $3 or $4, and in some of their best restaurants, it’s around $15 to $20. Paraguay is truly a country where you can have a luxurious life at an incredibly affordable price. And if you prefer a more budget-conscious lifestyle, it can be even cheaper!
Asuncion
The average price of hostels: 10 USD
The average price of a meal: 4 USD
Tempted by the idea of visiting this off-the-beaten-path destination? Why not explore the volunteering projects in Paraguay?
Guatemala
Guatemala has become a highly sought-after destination in recent years, and it’s easy to see why. Like many of its neighboring countries, you can enjoy great value when it comes to meals and accommodations. Of course, the capital offers the best deals to help you determine whether to splurge or stick to a budget. In Guatemala, you can find prestigious hotels for around $60, and for food, you can find dishes as low as $3 in cheap spots or $10 in more touristy areas. Transportation in Guatemala is also accessible, but if you have a limited budget, it’s advisable to travel like a local using the smaller vans, which may not be the most comfortable but can significantly cut costs. Guatemala is indeed very affordable, but like many Central American countries, locals take advantage of the tourism opportunities. My advice is to research the prices before purchasing services, and I guarantee you’ll have a wonderful time.
Guatemala City
The average price of hostels: 10 USD
The average price of a meal: 3 USD
Is it safe to travel to Guatemala? We answer that question in this article, and you can also discover the 23 best things to do in Lake Atitlán. If you want to spend a couple of weeks or even months in this beautiful country, there are plenty of volunteering opportunities available.
Cheapest Vacation Destinations in Southern Europe
Italy
If you thought that traveling to Italy was synonymous only with luxury, think again. In southern Italy, there are numerous cities where you can find affordable prices, and what’s more, the landscapes are simply dreamy. In this wonderful country, you can enjoy cheap pasta, delicious wines, the best margherita pizza, and great ice creams at very reasonable prices. And don’t forget about their excellent and affordable coffee, which is considered one of the best in Europe! Generally speaking, head to the south, as the north tends to have less attractive prices. Bari, Naples, and Palermo are great options for a short budget trip, and they also offer extraordinary beauty and incredible views, such as the Adriatic Sea. It’s worth noting that Italy is an amazing destination for volunteering with NFCVB. It’s a very economical way to explore the wonders of this picturesque country and experience “la vera esperienza.”
The average price of hostels: 20 USD
The average price of a meal: 5 USD
These articles will be helpful for your travel planning: The ultimate Italy travel guide and The 20 best cities to visit in Italy.
Portugal
Portugal is definitely one of the most affordable places to relax on a beach by the Atlantic Ocean. Whether you choose to stay in Lisbon, Oporto, or the southern regions, prices will remain reasonable, and you can easily access the beaches either by walking or using inexpensive public transportation. One of the cheapest regions in Southern Europe is the Algarve. It’s a must-visit destination with beautiful scenic spots like Praia de Benagil and Praia do Camilo. If you don’t mind swimming a short distance from the beach, you can even explore the caves for free. The beach cities in regions like Faro and Albufeira are charming, but my absolute favorite is Lagos. In Lagos, you can reach several beaches by walking through caves along the cliffs. If you eat in the beachfront restaurants, it can be quite expensive, but if you stick to the downtown area, you’ll find plenty of cheap options, with a regular meal typically costing around $5. Lagos is also a popular destination for backpackers, so there are plenty of hostel options available for less than $20 per night.
The average price of hostels: 18 USD
The average price of a meal: 5 USD
Get more inspiration with Portugal travel itineraries and 10 unmissable typical dishes to eat like a local in Portugal. You can also travel even more economically by volunteering in Portugal and experiencing things like “What it’s like to do a work exchange at a surf camp in Portugal.”
Cheapest Vacation Destinations in Central Europe
Hungary
In Hungary, head straight to Budapest for a hip and trendy experience. If you love culture and enjoy a good party, this is the place for you, and the best part is that it’s affordable! In Budapest, you’ll find countless books, vintage artifacts, and local food at very reasonable prices, and even second-hand clothes as cheap as $1. While lodging may seem a bit more expensive compared to other places, the rest of the expenses make up for it. Budapest is a great place to party, and a pint starts at around $2.
The average price of hostels/hotels: 29 USD
The average price of a meal: 5 USD
Volunteer in Hungary and save on accommodation while experiencing the country like a local.
Serbia
Many people may not pay much attention to Serbia or even know where it is on the map, but one thing is certain – it is a very cheap country. In some small places, you can survive on as little as $10 per day! It’s truly unbelievable. Living in Serbia is very affordable. You can find food for $2, beer for $2 in a bar, and accommodation for $10 in its cheapest cities. If you want to experience the post-Soviet atmosphere at a low cost and get to know a country, this is a great option. Belgrade is its capital, and here are the average prices:
The average price of hotels: 20 USD
The average price of a meal: 4 USD
And of course, you can volunteer in Serbia to get a deeper understanding of the country.
Poland
Welcome to the land of the Zloty and one of the cheapest countries in the European Union. Poland may not be a typical tourist destination, but precisely because of that, it offers a chance to truly experience the authentic Central European culture. In a bar around Warsaw, the capital, a beer can cost as little as $2, and a meal in an average restaurant is around $5. After a long day of exploring the modern districts of Warsaw, the old town streets of Krakow, or simply sitting on the dock in Brezno, you can book a cheap hostel night anywhere in Poland or even volunteer there for a more immersive experience.
The average price of hotels: 18 USD
The average price of a meal: 5 USD
Cheapest Vacation Destinations in Northern Europe
Estonia
Estonia may not be the cheapest country in the world, but it is one of the most affordable if you want to experience the atmosphere of Northern Europe. If you are a lover of cold weather and the tranquility of the forest, this is a great option for you. Keep in mind that the cheapest cities are those located near the Russian border, where you can find low prices on food, transportation, and accommodation. Estonia is not only a beautiful country but also not as busy as other northern countries, and its prices are reasonable for its category.
The average price of hotels: 25 USD
The average price of a meal: 8 USD
Yes, you can also participate in a work-exchange program in Estonia, which will save you a lot on accommodation. Estonia is one of our top chosen destinations for an overseas adventure travel.
Cheapest Vacation Destinations in Asia
Nepal
Nepal is one of the cheapest countries I have ever visited. Once you are there, it’s hard to believe how little money you can live on. Yes, the conditions may not be the most luxurious, and it may not be the cleanest country in the world, but all of that makes it a country where you can even live on as little as $7 per day (including everything). If you are interested in volunteering in Asia, you can do it with NFCVB, and there are many projects in Nepal that allow you to support worthy causes. Kathmandu is particularly notable, where hostels typically cost $3 per night, and a meal is around $2.
Kathmandu
The average price of hostels: 3 USD
The average price of a meal: 2 USD
Cheapest Vacation Destinations in the Middle East
Turkey
Turkey cannot be missing from this list. Besides being a beautiful country, its neighboring countries are considered some of the cheapest, but also sometimes among the most dangerous. This makes the border cities of Turkey affordable places to explore the Middle Eastern culture with more security. In this wonderful country, you can enjoy local food for less than $2.5, so if you’ve always wanted to try an authentic Doner Kebab, now is your chance at a great price. In Istanbul, you can find accommodation starting from $4 (hostel) to $68 in 5-star hotels, which is not bad considering it is considered the most expensive city in the country (and among the cheapest in Europe). Now imagine all the great budget options waiting for you there.
The average price of hostels: 6 USD
The average price of a meal: 5 USD
Volunteer in Turkey to fully immerse yourself in the diverse and wonderful culture of this country.
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