10 Top Budget-Friendly Cities for Backpackers

If you’re looking for an affordable destination to backpack, look no further! These 10 cities offer plenty of sights and activities without breaking the bank. From Southeast Asia to South America, there’s a destination for everyone on this list. So what are you waiting for? Pack your bag and get ready to explore the world on a budget!

What to Look For in a City

When deciding if a city is budget-friendly, there are a few key factors to consider. The cost of accommodation, food, and transportation are all important factors that can make or break your travel budget. Additionally, the availability of free or cheap activities can also be a deciding factor. Finally, if you’re a social person, you may want to consider a destination with a thriving nightlife scene, as this can be a great way to meet new people and save on accommodation costs.

How to Cut Costs When Backpacking

There are a few simple ways to cut costs when backpacking, no matter what your destination may be. First, consider Couchsurfing or hostel hopping instead of opting for more expensive accommodation options. Not only are hostels much more affordable, but they also offer a great opportunity to meet other travelers.

Additionally, street food is typically much cheaper than restaurants, so be sure to take advantage of local cuisine. And finally, walking or taking public transportation is almost always cheaper than taking a taxi or renting a car. If you need to rely on public transportation, check to see what rideshare opportunities each country has. Some countries may offer rentable scooters, which can be more affordable (and honestly more fun) than hopping in an Uber.

With these tips in mind, let’s take a look at 10 of the most budget-friendly cities for backpackers.

10 Budget-Friendly Cities for Backpackers

1. Bangkok, Thailand

The first city on our list is Bangkok, Thailand. This bustling metropolis is a great choice for budget-friendly travel. Accommodation options are plentiful and relatively cheap, ranging from hostels to guesthouses. The food is also quite affordable, with street food being a popular and cheap option for meals. Bangkok is also home to many free or cheap attractions, such as temples, parks, and markets. Finally, the city has a great nightlife scene, with plenty of bars and nightclubs to enjoy.

What to do in Bangkok:

Visit the Grand Palace
Explore Wat Pho
Wander around Chatuchak Weekend Market
Take a ride on a longtail boat
Check out Lumphini Park

Average cost: $30-40 USD per day
Average meal: $2-5 USD
Average accommodation: $10-15 USD per night

2. Hanoi, Vietnam

Hanoi is the capital city of Vietnam and another great choice for budget backpackers. Located in northern Vietnam, Hanoi is known for its French colonial architecture, as well as its rich culture and history. The city is quite cheap to visit, with accommodation and food being very affordable. Whether you want to explore a moving museum about the Vietnam War or enjoy the classic “egg coffee”, Hanoi is also home to many free or cheap attractions.

What to do in Hanoi:

Visit Ho Chi Minh Mausoleum
Wander around the Old Quarter
Check out One Pillar Pagoda
Explore the Temple of Literature
Take a scenic cruise on Halong Bay

Average cost: $25-35 USD per day
Average meal: $2-5 USD
Average accommodation: $10-15 USD per night

3. Siem Reap, Cambodia

Siem Reap is a popular tourist destination in Cambodia, and it’s easy to see why. The city is home to the famous Angkor Wat temple complex, as well as many other temples, ruins, and pagodas. Siem Reap is also a great city for foodies, with plenty of cheap and delicious street food options. In addition, the city has a lively nightlife scene and many affordable accommodation choices.

What to do in Siem Reap:

Visit Angkor Wat
Explore Ta Prohm
Wander around Angkor Thom
Check out Bayon Temple
Take a boat ride on Tonle Sap Lake

Average cost: $30-40 USD per day
Average meal: $2-5 USD
Average accommodation: $10-20 USD per night

4. Luang Prabang, Laos

Luang Prabang is the perfect destination for those looking to relax and soak up some culture. This small city in northern Laos is home to many Buddhist temples and monasteries. It’s also a great place to enjoy some delicious Laotian cuisine. While accommodation and food can be quite cheap, transportation costs can be a bit higher in Luang Prabang. However, there are many free or cheap activities to enjoy, such as exploring the temples and taking a stroll through the city’s markets.

What to do in Luang Prabang:

Visit Wat Xieng Thong
Explore the Night Market
Wander around the Royal Palace Museum
Check out Kuang Si Waterfalls
Take a boat ride on the Mekong River

Average cost: $35-45 USD per day
Average meal: $3-5 USD
Average accommodation: $15-20 USD per night

5. Bali, Indonesia

Bali is one of the most popular tourist destinations in Indonesia and it’s easy to see why. Whether you opt to visit the lush jungles of Ubud or head to the coast for the beachy vibes of Canggu, this beautiful island is home to stunning beaches, lush jungle, and vibrant culture. Visitors can enjoy plenty of activities such as surfing, hiking, and exploring temples. While accommodation and food can be quite cheap, transportation costs can be a bit higher in Bali. However, there are many free or cheap activities to enjoy, such as visiting the beaches and taking a walk through the rice terraces.

What to do in Bali:

Visit Uluwatu Temple
Explore Tanah Lot Temple
Wander around Seminyak
Check out Taman Ayun Temple
Take a walk through the rice terraces

Average cost: $35-45 USD per day
Average meal: $3-5 USD
Average accommodation: $15-25 USD per night

6. Medellin, Colombia

Medellin is the second-largest city in Colombia and a great choice for budget backpackers. The city is located in a valley and surrounded by mountains, making it a beautiful place to explore. Medellin is also home to many parks, museums, and plazas. Visitors can enjoy plenty of activities such as hiking, biking, and exploring the city’s many neighborhoods. Accommodation and food are quite affordable in Medellin, making it a great choice for budget backpackers.

What to do in Medellin:

Visit Parque Arvi
Explore Museo de Antioquia
Wander around Plaza Botero
Check out Parque Explora
Take a cable car ride up to Cerro Nutibara

Average cost: $30-35 USD per day
Average meal: $2-5 USD
Average accommodation: $10-20 USD per night

7. Budapest, Hungary

Although Europe as a whole tends to be more expensive than other regions in the world, Budapest—the capital city of Hungary—is a great option for budget backpackers. The city is located on the Danube River and is home to many beautiful parks and monuments. Visitors can explore the city’s many museums and art galleries, as well as its historic buildings. Budapest is also a great place to enjoy some cheap and delicious Hungarian food. Accommodation and transportation costs are quite affordable, making Budapest a great choice for budget backpackers.

What to do in Budapest:

Visit Fisherman’s Bastion
Explore the Hungarian Parliament Building
Wander around St. Stephen’s Basilica
Check out the Széchenyi Thermal Bath
Take a walk along the Danube River

Average cost: $50-75 USD per day
Average meal: $10-15 USD
Average accommodation: $15-25 USD per night

8. Krakow, Poland

Krakow is a beautiful city located in southern Poland. The city is home to many historic buildings and monuments, as well as a lively nightlife scene. Visitors can explore the city’s many museums and art galleries, as well as its Royal Castle. Krakow is also a great place to enjoy some cheap and delicious Polish food. Accommodation costs are quite affordable, making Krakow a great choice for budget backpackers.

What to do in Krakow:

Visit Wawel Castle
Explore the Main Market Square
Wander around Kazimierz—the former Jewish quarter
Check out the Wieliczka Salt Mine
Take a walk along the Vistula River

Average cost: $40-50 USD per day
Average meal: $5-10 USD
Average accommodation: $15-20 USD per night

9. Mexico City, Mexico

Mexico City is the capital of Mexico and a great choice for budget backpackers. Most of the city’s main attractions are located in and around the Plaza de la Constitución, the massive main square also known as the Zócalo. Visitors can explore the city’s many museums, art galleries, and historic buildings. Mexico City is also a great place to enjoy some cheap and delicious Mexican food. Accommodation costs are quite affordable, making Mexico City a great choice for budget backpackers.

What to do in Mexico City:

Visit Chapultepec Park
Explore the National Museum of Anthropology
Wander around the Zocalo—the main square
Check out Templo Mayor—the ruins of an ancient Aztec temple
Take a walk through Chapultepec Forest

Average cost: $30-40 USD per day
Average meal: $3-5 USD
Average accommodation: $10-20 USD per night

10. Cusco, Peru

Cusco is a city located in the southern region of Peru. The city is home to many Inca ruins and colonial-era buildings. Visitors can explore the city’s many museums and art galleries, as well as its historic center. Cusco is also a great place to enjoy some cheap and delicious Peruvian food. Accommodation costs are quite affordable, making Cusco a great choice for budget backpackers.

What to do in Cusco:

Visit the Sacsayhuaman ruins
Explore the Qorikancha—the Temple of the Sun
Wander around Plaza de Armas
Check out San Blas—the artists’ quarter
Take a walk through the San Cristobal hillside