The Backpacker’s Guide to Stretching Your Travel Budget
The Backpacker’s Guide to Stretching Your Travel Budget
Stretching your travel budget is both an art and a necessity.
Global hotel room prices have fluctuated wildly in recent years. Some cities have gotten astronomically expensive, while others have become surprisingly budget-friendly.
The good news?
Travel can be extended and diversified with the right set of strategies. You can see more places for less money, but only if you know where to look and which tricks work.
Here’s how to do just that…
In This Guide:
- Understanding Global Hotel Room Prices
- The Best Budget Destinations Right Now
- Smart Accommodation Strategies
- Money-Saving Hacks That Actually Work
Understanding Global Hotel Room Prices
Before we start planning and packing, we need to take a step back and understand the lay of the land.
Global hotel room prices can vary dramatically from country to country, and city to city. As of now, the most expensive city to travel to in the world is London, at $247 per night on average, while places like Phnom Penh have average hotel room prices that budget travelers are drooling at, at only $31 per night.
That’s a large difference.
From average nightly hotel room rates as low as $14 in Indonesia to an eye-watering $780 for a five-star property in Brazil, understanding these numbers is the first step to getting further on your travel dollar.
Here’s the information that smart backpackers need to know:
- Southeast Asia remains the budget travel champion, with nightly averages below $30 in most countries
- Eastern Europe is a massive value compared to its Western counterparts
- Latin America offers a great balance of affordability and adventure
The data shows that international 5-star hotels are, on average, 27% cheaper than those found in the US. That means luxury abroad can cost less than even budget options in the states.
Pretty wild, right?
The Best Budget Destinations Right Now
Now that we have a basic idea of which countries and regions are likely to work best for us as we work to save some serious travel cash, we can dive into the destinations that deliver the best value on a budget.
The following regions offer the highest value to backpackers looking to save on travel expenses, measured in terms of accommodation, food, entertainment and general costs of living.
Southeast Asia
Indonesia, Malaysia and Thailand have consistently been some of the cheapest places to travel for decades. Travelers can live comfortably on $25-$40 per day in most regions. The budget traveler infrastructure is excellent in these areas, with a high density of hostels, cheap eateries and low transport costs.
Over a third of the world’s hostels are found in Asia, that’s nearly 6000 hostels waiting to welcome budget travelers. The density of hostels in Asia is what keeps prices low and standards high as the competition is fierce.
Eastern Europe
Sofia and Budapest are fantastic value right now for travelers. Hostel beds in Europe start at as low as $8 per night. The food is hearty and cheap. The public transport systems are also extensive and cheap to use.
South America
Ecuador and Bolivia are standout bargains at the moment. Colombia has seen significant growth in terms of value for budget travelers in recent years.
The key here is to pick your destinations in a place where your currency will go further. A strong dollar or euro can open doors in an emerging economy that otherwise might be shut.
Smart Accommodation Strategies
Accommodation is often the largest single area of spend for most travelers on a budget.
Here are some strategies to reduce that cost…
Embrace Hostels
Hostels remain by far the most popular choice for budget travelers and are the backbone of low-cost travel. Over 80% of backpackers stay in hostels at some point during their travels. Hostels are in high demand for a reason.
They are cheap, social and often found in great central locations.
Hostel numbers have exploded in recent years. The listed number of hostels has grown 173% over the past decade. That density of hostels keeps prices down and forces quality up due to competition.
Don’t sleep on hostel kitchens either. Cooking your own food will save you a fortune over your travels. Many hostels even offer a free breakfast to guests.
Consider Alternative Accommodation
Mixing it up is a smart approach. Staying in hostels for part of your trip and splurging on guesthouses or even apartments and serviced apartments on your rest days can offer an excellent balance.
It saves money while also giving you the opportunity to meet people and still have quality downtime.
Book Strategically
Timing is everything and applies to accommodation booking more than most people realise. The sweet spot for booking is around 2-3 weeks in advance, and on the right day. Sundays for domestic trips and Mondays for international arrivals are often the cheapest.
Steer well clear of peak season if possible. Shoulder season travel can often save you 30-50% on accommodation at the same time often maintaining pleasant weather and experiencing lighter crowds.
Money-Saving Hacks That Actually Work
Beyond just accommodation, there are also dozens of money-saving hacks that help stretch your travel budget further.
Eat Like a Local
Street food and local markets will always be a better value option than restaurants. The food is often fresher and more authentic anyway. Budgeting $10-$15 per day for food in cheap destinations will keep you full and happy.
Walk More, Pay Less
Taxis and rideshares add up much faster than most people think. Walking not only keeps you fit and healthy, but it also allows you to discover hidden gems that you might otherwise never have found. When transport is necessary, public transport is almost always cheaper than private options.
Use Travel Rewards
Credit card points and airline miles can make a real difference in offsetting travel costs. Some travel reward credit cards offer welcome bonuses worth hundreds in travel value. Start accruing points before you travel, and you can reap the rewards once you hit the road.
Track Exchange Rates
Currency fluctuations can open up new opportunities for travelers. Japan has recently become significantly cheaper due to the depreciation of the yen. Keeping informed and pouncing when rates are favourable will help.
Slow Down
Traveling fast is expensive. Every bus, every flight, and every new place you stay adds to the total budget. Staying longer in fewer places is more budget-friendly as you will spend less on transport and often qualify for discounts for weekly accommodation.
There is another, less obvious, benefit too.
Longer stays let you find those cheap local spots that most tourists never find. That hole in the wall local restaurant with amazing food for $2? You will only find it by staying longer.
Travel Off-Peak
Shoulder season is a backpacker’s best friend. Prices drop significantly when the tourists leave but the weather remains pleasant for the most part. The value is better, and the experience is more authentic.
Research the specific off-peak timing for each destination. Some places have clearly defined high and low seasons while others remain fairly steady year-round.
Wrapping Things Up
Stretching your travel budget comes down to a series of smart decisions and strategies rather than sacrifice or cutting out the good stuff.
Focus on the destinations where global hotel room prices work in your favour. Southeast Asia and Eastern Europe are currently unbeatable in this regard.
Use hostels strategically and book your accommodation at the right times. The best part?
Budget travel often ends up being a richer experience than luxury trips in a host of ways. Staying in hostels means meeting fellow travelers. Eating street food means sampling local culture. Walking means discovering hidden corners that taxis never reach.
Let’s quickly recap:
- Do your research on global hotel room prices before choosing your destinations
- Focus on regions where your currency will stretch further
- Mix up your accommodation types for a good balance of savings
- Book strategically and factor in the right timing
- Embrace the local food and walking culture over tourist traps
Travel doesn’t need to be expensive. Armed with these strategies and hacks, you can see the world without breaking the bank.
The adventure awaits. Your budget just needs a little stretching first.
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