Budget-Friendly Travel Destinations: It’s More Complicated Than You Think

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With over 104 million search results for the query “budget-friendly travel destinations,” you could say people are interested in exploring the world without breaking the bank. 

I get it! I love to travel and I love to save money. The more you save on one trip, the more you have for the next. Knowing where to save and splurge is key to my travel philosophy and you can have an amazing experience while keeping to a reasonable budget. 

But when it comes to “budget-friendly destinations,” it’s a bit more complicated than finding a list of “cheap” countries. 

After all, who’s budget are we looking at? What are their travel styles and expectations? Where does privilege come into the conversation? Is it ethical to always be looking for a deal? What’s the impact of tourism on local economies? 

I don’t have all the answers for you, sorry. But I think it’s a valuable conversation. 

Here I look at why it’s kind of complicated to talk about “budget-friendly destinations” and use some of my own travel experiences to illustrate some of my thoughts.

What does budget-friendly even mean? It’s complicated

I don’t think we can talk about budget-friendly destinations without talking about privilege. 

Because even being able to afford “cheap travel” is a privilege. 

Just being able to get on a plane and enter a country is a privilege. 

And if you have the money and passport power to go abroad for recreation and tourism purposes, you’re in a very small section of the world’s population. 

I’m in a very small section of the world’s population. 

I’m privileged to be able to travel. 

I think there are a lot of really great articles and essays that explore this concept (here are a few to start with: one, two, three), plus lots of heated and thought-provoking discussions on forums like Reddit (like this thread on if it’s elitist to look down on those who don’t travel).

I don’t want to rehash all the arguments and ideas here, but I think it’s safe to say that traveling internationally comes with a level of privilege we best not take for granted. And, with that privilege, comes the responsibility to travel ethically. In relation to finances and budget, this means: 

  • Paying fair prices when shopping locally (i.e., don’t bargain down to the lowest point just to save a few bucks—this is someone’s livelihood). 
  • Tipping generously, where appropriate (i.e., some countries don’t like tipping, so make sure you know the rules before going). 
  • Giving back when possible (i.e., supporting a local charity or initiative). 
  • Purchasing local-made products or frequenting small, local businesses instead of chains—again, where possible (i.e., put your money back into the local economy!).
  • Always being respectful, honoring local customs and traditions, and not being an entitled jerk! 

With these things in mind, traveling on the smallest budget possible is no longer the main goal. The main goal is to have an enjoyable holiday within your budget, whilst supporting the local economy and giving back where you can. 

Some budget-friendly(ish) countries I’ve visited

Privilege doesn’t mean you shouldn’t travel or enjoy traveling. It doesn’t even mean you shouldn’t try to travel on a budget! It does mean you should be open-minded and aware of where you’re coming from and how that impacts your travels. 

Beyond the privilege piece, there are other reasons why “budget-friendly travel” is a complex issue. Here are some places I’ve been that are budget-friendly for their own reasons: 

1. Mexico

I visited Cabo San Lucas, Mexico for 1.5 weeks in January 2023 with a friend. It’s one place that stands out as a stark contrast between luxury and budget travel, as both were available in the area. 

Cabo is a popular resort and party destination. The coast is lined with fancy hotels and the city is lined with busy clubs. This means people end up coming to Cabo to spend a lot of money. 

My friend and I? Not so much. We wanted a cheap vacation, which is why we chose Cabo (thanks, Flair Airlines!). 

We booked an Airbnb within a 15-minute walk from the city centre and beach for $100/night, walked everywhere, cooked, ate at local food stalls, and limited going out/drinking. 

  • Key takeaway: Destination alone doesn’t determine how much you spend, your travel style/priorities do. 

2. Croatia

I visited Croatia (Split and Dubrovnik) for a week in Fall 2019 with a friend. Before going, I’d heard many people sing the praises of Croatia—it’s beautiful, the food’s good, it has amazing architecture, and, well, it’s cheap. Or at least cheap for Europe. 

Well, weren’t we surprised to find the prices virtually on par with other European countries. Restaurants were expensive (think 20-25 euros/meal, which is around 30+ CAD). Excursions were expensive. My beloved daily gelato was expensive. This may be completely reflective of where we were in the highly touristic cities of Split and Dubrovnik, but they were a shocker nonetheless. 

But you know what was cheap? Accommodations. Our well-located, clean, and comfortable Airbnbs were extremely affordable, way below any other European destination we’d been to. 

  • Key takeaway: Whatever you hear out in the rumour mill isn’t always true, so don’t bank on those expectations. Some destinations also have some cheap items (accommodations) and others that aren’t (food). 

3. Guatemala

I visited Guatemala for one month in April 2023 by myself. It was part of a months-long trip to learn Spanish and try out the digital nomad lifestyle

I stayed in Antigua for about three weeks, living with a homestay family and studying Spanish at Maximo Nivel (who set up the homestay)—both of these cost $825.00 USD. I then spent about one week at Lago Atitlan for vacation, where it was easy to find accommodations for less than $50.00/night and food for less than $10.00/meal. 

  • Key takeaway: Some countries genuinely are inexpensive all-around. Even comparing the price of Maximo Nivel classes in Guatemala vs. Costa Rica, where they have another campus, it was much cheaper in Guatemala because the cost of living is much lower there. 

4. England

I’ve visited England twice—for two weeks in 2017 and a week in 2019. On those trips, I explored London, Oxford, Brighton, and the Lake District. 

England is not typically seen as a “budget destination.” However, I found London in particular to be fairly reasonable. This ultimately comes down to choice—there are so many restaurants and so many hotels/accommodations, that you can find something to fit your budget. For this reason, it was not nearly as expensive as some destinations where you have fewer choices and, because of that, prices are higher. 

  • Key takeaway: Available choices can be a big driver of expenses while traveling. Big cities like London have a ton of different options at a variety of prices, meaning you can be as frugal or splurging as you like. 

5. Cambodia

I visited Cambodia for about a week (part of a longer tour in Southeast Asia) in 2016. While it was a few years ago, it was cheap, cheap, cheap. I.e., spending a couple of bucks for a meal at a restaurant kind of cheap.

We spent some time on the tour learning about Cambodia’s tragic history of genocide in the 1970s when one-fifth of the Cambodian population was killed by the Khmer Rouge. This had and has long-lasting, devastating impacts on the country, even today. 

Cambodia is a beautiful country with kind people, amazing sites, delicious food, and a fascinating, devastating history. Traveling through the country, I saw signs of poverty and heard stories of many people struggling to make a living, some of whom were grateful for tourism to help the economy flourish. 

So, it’s more than just a cheap budget destination for backpackers—it has a whole history that we need to be aware of, too. 

  • Key takeaway: Sometimes a cheap destination reflects the state of the economy and well-being in a country. We need to be careful and thoughtful about traveling through developing countries that struggle with poverty. 

So, are there affordable travel destinations out there? Yes, of course. 

But is it as simple as picking one from a Google-generated list and going? Not so much. 

Countries can be “budget-friendly” in some ways and not others. They can be cheap because of how you choose to travel or what options are available to you. And, the wider economy and history of a place has a lot to do with how much it costs to travel there. 

Keeping these things in mind, plus the very real travel privilege many of us have, is key to sustainable, ethical, and meaningful travel experiences.

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