Do you dream of exploring exotic beaches, ancient temples, and vibrant cities, but your bank account says otherwise? You’re not alone! The average vacation costs around $1,200 per person, making travel feel impossible for many budget-conscious adventurers.
But here’s the good news: there are amazing cheap places to go on holiday that offer incredible experiences without draining your savings account.
Forget the myth that great travel requires a fortune. Some of the world’s most beautiful and exciting destinations are surprisingly affordable. From tropical paradises in Southeast Asia to historic European cities, you can create unforgettable memories for less than you spend on groceries each month.
In this guide, you’ll discover 15 incredible budget destinations where your money goes further, your adventures get bigger, and your wallet stays happy. We’ll break down real costs, share insider tips, and show you exactly how to make your travel dreams come true without breaking the bank.
Table of Contents
What Makes a Holiday Destination Truly Budget-Friendly?
Not all cheap places to go on holiday are created equal. The best budget destinations share five key features that make your money stretch further.
First, daily accommodation costs should stay under $30. This includes everything from hostels and guesthouses to budget hotels and homestays. The sweet spot for budget travelers is finding clean, safe places to sleep that don’t eat up half your daily budget.
Second, affordable local transportation makes a huge difference. Cities with cheap buses, trains, or metro systems help you explore without spending a fortune on taxis. Many budget-friendly destinations also have walkable city centers or cheap bike rentals.
Third, inexpensive local food and dining options are essential. Street food, local markets, and neighborhood restaurants should offer filling, delicious meals for under $5. The best budget destinations have amazing food cultures that don’t require fancy restaurants.
Fourth, free or low-cost activities and attractions keep your entertainment budget low. Think free walking tours, public beaches, hiking trails, and museums with cheap or free entry days.
Finally, favorable exchange rates for travelers make your dollars go further. When your home currency is strong compared to the local money, everything from hotels to meals becomes more affordable.
Top 5 Cheap Places to Go on Holiday in Southeast Asia
Southeast Asia remains the king of budget travel, offering some of the world’s best cheap places to go on holiday. These five destinations prove you can live like royalty on a backpacker’s budget.
Thailand – The Backpacker’s Paradise
Thailand tops every list of affordable destinations for good reason. Your daily budget can be as low as $25-35, covering everything from accommodation to activities.
Bangkok offers hostels for $8-12 per night, while Chiang Mai’s guesthouses cost even less. The southern islands like Koh Phi Phi and Koh Samui have beach bungalows starting at $15 per night during low season.
Street food is Thailand’s greatest budget gift to travelers. Pad Thai from a street cart costs $1.50, while a full meal at a local restaurant rarely exceeds $4. Night markets offer endless variety and rock-bottom prices.
Transportation is incredibly cheap too. Local buses cost pennies, while long-distance buses between cities run $5-15. Even domestic flights during sales can cost less than $30.
Vietnam – Stunning Landscapes on a Shoestring
Vietnam offers incredible value, especially in the north. Hanoi and Sapa cost significantly less than Ho Chi Minh City and the southern beaches.
Hostels start at $6 per night in Hanoi, while homestays in rural areas cost $10-15 including meals. Beach towns like Hoi An have budget hotels for $12-18 per night.
Vietnamese street food is legendary and cheap. A steaming bowl of pho costs $2, while banh mi sandwiches are under $1. Local restaurants serve full meals for $3-5.
Buses between cities cost $8-20, while motorbike rentals run $5-8 per day. Many natural attractions like Ha Long Bay have budget tour options starting at $25 for day trips.
Cambodia – Ancient Wonders for Less
Cambodia combines incredible history with rock-bottom prices. Angkor Wat day passes cost $37, but everything else is remarkably affordable.
Siem Reap hostels start at $5 per night, while guesthouses near the temples cost $8-15. Phnom Penh offers even cheaper accommodation options.
Local food is incredibly inexpensive. Street food costs $1-2 per meal, while restaurant meals rarely exceed $5. Local markets sell fresh fruit and snacks for pennies.
Tuk-tuk rides around Siem Reap cost $2-5, while buses to Phnom Penh run $6-10. Most cultural experiences and temple visits cost under $10.
Laos – Hidden Gem of Indochina
Laos remains Southeast Asia’s most peaceful and affordable destination. Vientiane and Luang Prabang offer incredible value for budget travelers.
Guesthouses start at $6-10 per night, while riverside bungalows cost $12-20. Many accommodations include free breakfast and Wi-Fi.
Local markets offer amazing food for tiny prices. Traditional Lao meals cost $2-4
River activities like kayaking and tubing cost $10-20 for full days. Bus transportation between cities runs $8-15, while local transport is often free or under $2.
Philippines – Tropical Paradise on a Budget
The Philippines offers world-class beaches and island-hopping adventures without premium prices. Strategic planning makes this destination very affordable.
Hostels on popular islands like Palawan cost $8-15 per night, while local guesthouses start at $10-20. Beach camping is often free or very cheap.
Local food is filling and affordable. Rice meals cost $2-4, while fresh seafood at local restaurants runs $5-10. Island hopping tours include lunch and cost $15-25 per person.
Island-hopping between budget airlines and ferries keeps costs low. Local buses and jeepneys cost under $2 for most journeys.
5 Affordable European Destinations That Won’t Break the Bank
Europe doesn’t have to be expensive. These five countries prove you can explore European culture, history, and cuisine on a tight budget.
Portugal – Western Europe’s Budget Secret
Portugal offers Western European quality at Eastern European prices. Lisbon and Porto provide incredible value compared to other major European cities.
Hostels in Lisbon cost $15-25 per night, while guesthouses start at $30-45. Porto is even cheaper, with budget accommodation from $12-20 per night.
Local restaurants serve excellent meals for $8-12, while street food and markets offer cheaper options.
Public transportation passes make getting around very affordable. Metro day passes cost $6, while buses between cities run $10-20.
Poland – Historic Cities for Pennies
Poland combines stunning medieval cities with some of Europe’s lowest prices. Krakow and Warsaw offer incredible value for budget travelers.
Hostels start at $10-15 per night, while private rooms in guesthouses cost $20-35. Apartment rentals for longer stays offer even better value.
Traditional Polish food is hearty and cheap. Full meals at local restaurants cost $5-8, while street food and markets offer options under $3.
Many museums and cultural sites have free entry days or student discounts. Walking tours are often free or very cheap.
Hungary – Thermal Baths and Budget Bliss
Budapest offers one of Europe’s best budget experiences. Thermal baths, stunning architecture, and cheap living costs make it perfect for budget travelers.
Hostels start at $12-18 per night, while budget hotels cost $25-40. Many accommodations include breakfast and Wi-Fi.
Local restaurants serve generous portions for $6-10, Local markets offer fresh food at great prices.
Public transportation day passes cost $5, while thermal bath entry runs $15-25 for full day access.
Czech Republic – Castles on a Budget
Prague remains one of Europe’s most affordable capitals. Beyond the tourist areas, costs drop dramatically.
Hostels start at $10-15 per night, while staying outside the city center offers even better value. Private rooms cost $25-40 per night.
often costing less than water. Local restaurants serve hearty meals for $6-10, while street food options are plentiful.
Many castles and historic sites have free entry days. Walking tours and public transportation are very affordable.
Romania – Dracula’s Land for Less
Romania offers incredible value with stunning castles, medieval cities, and beautiful mountains. Bucharest and Brasov are particularly budget-friendly.
Accommodation starts at $8-12 per night in hostels, while guesthouses cost $15-25. Rural areas offer even cheaper options.
Traditional Romanian meals cost $5-8 at local restaurants, while street food and markets are even cheaper.
Mountain hiking and outdoor activities are often free. Castle visits cost $5-10, while museums and cultural sites are very reasonably priced.
5 Budget-Friendly Destinations in Central and South America
Central and South America offer incredible diversity and adventure at prices that make your money go far. These five destinations combine culture, nature, and affordability.
Guatemala – Mayan Culture on a Dime
Guatemala provides rich indigenous culture and stunning landscapes at rock-bottom prices. Antigua and Lake Atitlan are particularly budget-friendly.
Hostels cost $6-12 per night, while homestays with local families run $10-20 including meals. Spanish schools often include accommodation packages.
Local food is incredibly cheap and delicious. Street food costs $1-2, while restaurant meals run $3-6. Local markets offer fresh produce at tiny prices.
Local buses cost under $2 for most journeys, while shared shuttles between tourist areas run $5-15.
Bolivia – High-Altitude Adventures
Bolivia offers incredible landscapes and cultural experiences at some of South America’s lowest prices. La Paz and Sucre are particularly affordable.
Hostels start at $5-8 per night, while guesthouses cost $10-18. Salt flats tours include accommodation and start at $60 for three days.
Local food is filling and cheap. Traditional meals cost $2-4, while street food is even less expensive. Local markets offer amazing value.
Bus transportation is very cheap, with long-distance journeys costing $10-25. Local transport rarely exceeds $1.
Peru – Machu Picchu Without the Premium Price
Peru combines ancient wonders with budget-friendly travel. Lima and Cusco offer different price points, with budget options available everywhere.
Hostels start at $8-15 per night, while guesthouses near major attractions cost $15-25. Alternative treks to Machu Picchu cost much less than the famous Inca Trail.
Local food is diverse and affordable. Set meals cost $3-5, while street food options are under $2. Local markets provide fresh ingredients cheaply.
Bus transportation between cities costs $15-30, while local transport is very affordable.
Ecuador – Galapagos Gateway on a Budget
Ecuador’s mainland offers incredible value, while budget Galapagos alternatives provide nature experiences without premium prices.
Hostels cost $8-15 per night, while eco-lodges and guesthouses start at $15-25. Mainland Ecuador is significantly cheaper than the islands.
Local food is fresh and affordable. Meals at local restaurants cost $3-6, while street food and markets offer cheaper options.
Free natural attractions include hiking, waterfalls, and national parks. Budget tour options are available for most activities.
Nicaragua – Central America’s Best-Kept Secret
Nicaragua offers incredible value with colonial cities, active volcanoes, and pristine beaches. Granada and Leon are particularly budget-friendly.
Hostels start at $6-10 per night, while colonial guesthouses cost $12-25. Beach accommodations are often very affordable.
Local food is delicious and cheap. Traditional meals cost $3-5, while street food is under $2. Fresh seafood at beach restaurants is very reasonably priced.
Volcano hiking and adventure activities cost $10-25, while many beaches and natural attractions are free to access.
Money-Saving Tips for Budget Holiday Planning
Smart planning can make any destination more affordable. These strategies help you find the best cheap places to go on holiday and maximize your travel budget.
Timing Your Trip Right
Travel timing dramatically affects costs. Off-season travel can save 30-50% on accommodation and flights. Shoulder seasons offer good weather with lower prices.
Book flights 6-8 weeks in advance for the best deals. Avoid local holidays and festivals when prices spike dramatically.
Accommodation Strategies
Hostels offer the cheapest beds, but compare prices with budget hotels and guesthouses. Longer stays often include discounts.
Consider apartment rentals for stays over a week. House-sitting and work exchanges can provide free accommodation.
Transportation Hacks
Budget airlines can be cheaper, but watch for hidden fees. Compare total costs including baggage and seat selection.
Local transportation is almost always cheaper than tourist options. Walking and cycling provide free transportation and great experiences.
Food and Dining on a Dime
Street food offers authentic experiences at tiny prices. Local markets provide fresh ingredients for self-catering.
Many accommodations include breakfast or kitchen facilities. Happy hours and lunch specials offer restaurant meals at lower prices.
How to Stretch Your Holiday Budget Even Further
These advanced strategies help you travel longer and spend less, making cheap places to go on holiday even more affordable.
Free Activities and Attractions
Walking tours, beaches, hiking trails, and parks provide free entertainment. Many museums have free entry days or hours.
Local festivals and community events offer authentic cultural experiences without cost.
Travel Rewards and Loyalty Programs
Credit card points can cover flights and hotels. Hostel loyalty programs offer discounts and perks for frequent travelers.
Group bookings often include discounts for accommodation and activities.
Currency and Payment Tips
Research exchange rates and use ATMs instead of currency exchanges when possible. Notify your bank of travel plans to avoid fees.
Some destinations prefer cash, while others favor cards. Research payment preferences before traveling.
Planning Your Next Budget Adventure
Create a realistic daily budget including accommodation, food, transportation, and activities. Add 20% for unexpected expenses and emergencies.
Budget travel insurance costs $5-15 per day but protects against expensive medical bills and trip cancellations.
Pack light to avoid baggage fees and bring versatile clothing suitable for different climates and activities.
Conclusion
These 15 incredible destinations prove that amazing travel experiences don’t require trust funds or maxed-out credit cards. From Thailand’s temples to Portugal’s coastlines, cheap places to go on holiday offer life-changing adventures at prices anyone can afford.
The world is full of affordable wonders waiting to be explored. Whether you’re drawn to Southeast Asian street food, European history, or Central American volcanoes, your perfect budget adventure is out there.
Ready to turn your travel dreams into reality? Start researching flights to one of these amazing destinations today. Your wallet-friendly adventure awaits, and the memories you’ll create will be worth far more than what you’ll spend getting there.
Which of these budget destinations calls to your adventurous spirit? Share your travel plans and budget tips in the comments below – fellow travelers love discovering new cheap places to go on holiday through each other’s experiences!