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The Brooklynite Abroad

Budget Travel Destinations You’ll Want to Visit ASAP

Budget Travel Destinations - El Naranjo Waterfalls in Mexico

Planning a trip, whether big or small, won’t be hard with this list of budget travel destinations. As someone who has always paid my credit card in full after a trip, it takes some serious discipline not to overspend. I get it, when you’re on vacation, you want to spend like money is no object. 

With that said, there is no need to go broke going to overly-hyped exclusive resorts or excursions that are clearly money traps. Trips should not need to cost an arm and a leg. They might set you back slightly, but it should never be a perpetual cycle of doom. This post will break down some of my tips to help you budget your trip so you can come home and not stress about all the bills piling up.

As a disclaimer, let’s also be clear that everyone has a different definition of “budget” or “affordable”. For myself and this blog post, a typical trip around 10 days costs roughly $2k-$2.5k. Generally, that’s not heavily budgeting the trip, so the goal here is to aim for around $200-$250/day per person. That starts with destinations that (1) have affordable flights, and (2) where the USD is strong. 

I know that there are extreme budget travelers who can spend around $20/day, but this is not that page. Honestly, it all depends on your level of comfort, so these recs are for mid-range budget travelers who want to travel affordably yet comfortably.

Let’s get into my list of the top budget travel destinations!

BUDGET TRAVEL DESTINATIONS: UNDERSTANDING THE BIG MAC INDEX

I’m going to use this term a lot in this post to assess true budget travel destinations, so it’s important we get familiar with the basics.

The Big Mac Index is a way to measure what is called purchasing power parity (PPP). It essentially compares currencies of different countries against the USD by tracking one product (in this case, a Big Mac). The idea is that typically a Big Mac should cost around the same price, so when assessing currencies, you’ll understand if a currency is undervalued or overvalued.

  • Undervaluation: If the currency in x country is undervalued, that means aka a Big Mac is cheaper than in the US, meaning your USD will go farther. These are destinations that will be more affordable.
  • Overvaluation: If the currency in x country is overvalued, that means aka a Big Mac is more expensive than in the US, meaning you need more USD to buy goods/services. These are destinations that will be more expensive.

The goal is to find countries where the currency is undervalued compared to the US.

Guatemala: Budget Travel Destination #1

Remember, I told you that a 10-day trip cost me around $2k-$2.5k? Well, you can get 20 more days of travel for the same price. Hospitality, transportation, groceries, and excursions are affordable, making this a great budget travel destination. The exchange rate is also in the US’s favor, where 1USD = 7.9 GTQ. 

According to the Big Mac Index, a Big Mac in Guatemala costs an average of $4. Compared to the average price in the U.S of $5.79, this shows that the Guatemalan currency is undervalued by 30%.

This suggests that the USD goes 30% farther than in the U.S, proving it’s a great destination if you’re looking to save your money, experience more, and travel for less.  

Mexico: Budget Travel Destination #2

Mexico is such a huge country with tons of places to explore, so if you’re looking to save money and still have a great trip immersed in culture, you can have about 5 different trips in just this country alone. 

  • Trip #1: Mexico City
  • Trip #2: Cabo San Lucas
  • Trip #3: Oaxaca Puerto Escondido
  • Trip #4: Yucatan Peninsula
With a currency rate exchange of 1USD = $MXN 17.91 & a Big Mac Index score undervaluing its currency by 20%. It means that prices are, on average, 20% more affordable/attainable with USD.

 

If that’s up your alley, then you have a few trips filled with adventure, culture, and all while saving money!

Albania: Budget Travel Destination #3

This country is a hidden gem, and for it being in such close proximity to Italy, Croatia, and Greece, it surprises me that it’s overlooked. Flights may not be that convenient and will most likely be your biggest expense; however, when you account for affordability, you save a lot in the long run.

On average, a 2-week trip costs about $1499 per person. 

This is also one of those countries that does not have any McDonald’s, so the Big Mac Index does not apply here. What we can do is take a staple item and compare the price ourselves. Take milk, for example. Milk in the US costs around $5. In Albania, milk costs around 155.7 lek, which is around $2USD ( 1USD = $80 Albanian Lek). Based on this, the Albanian Lek is undervalued by 40%, meaning everything is almost like half off for US citizens.

South Africa: Budget Travel Destination #4

South Africa may take forever to get to (around 18 hours and multiple layovers), but once you are there, it is one of the coolest places, and our USD goes a long way!

According to the Big Mac Index, the South African Rand is undervalued by over 50%, meaning, like in Albania, everything will feel like 50% off. Typically, people save their money on local experiences to make way for Safaris which are aound $600 – $900 per person per day. Other than the safaris, South Africa is incredibly affordable.

The Philippines: Budget Travel Destination #5

This is another spot that takes a while to get to, and airfare might be your highest cost of the trip, but once you touch down, you’ll understand why it’s on the list of budget travel destinations.

An average 2-week trip per person costs around $1k, which is less than I have spent on a trip with less time. This is one of the many reasons to visit the Philippines on your next trip. Your dollar is stretched and the adventures are limitless.

THERE YOU HAVE IT

Now that we have learned some economics with the Big Mac Index, it’s time to apply it to the real world. Take a look at a country you’re planning to visit and ask yourself, am I going to end up spending more or less than if I were in the US? 9 times out of 10, people do NOT consider local currencies when planning their trip. They find a cheap flight and rightfully so, JUST BOOK IT. The only downside to that is that not doing any research on the local currency can cause a lot of financial strain in the long run.

For example, yes, a flight to Iceland might only be $300, but its currency is valued 200x that of the USD, meaning everything is 2x the price, which will make your trip more expensive!

Let me know where you’re planning to go, and hope these budget travel destinations added some inspiration for future trips!

author avatar
Veronica
Hi everyone! My name is Veronica, but you can also call me Vee! I grew up in the iconic city of Brooklyn, NY, the cultural hub of the world, and hence learned about so many different cultures. It was those experiences that inspired me to travel and from then on, I had learned the power of travel. In return, I want to give others that same experience, to help inspire others to unleash their inner travel enthusiast no matter the trip.

About The Author

Veronica

Hi everyone! My name is Veronica, but you can also call me Vee! I grew up in the iconic city of Brooklyn, NY, the cultural hub of the world, and hence learned about so many different cultures. It was those experiences that inspired me to travel and from then on, I had learned the power of travel. In return, I want to give others that same experience, to help inspire others to unleash their inner travel enthusiast no matter the trip.
VERONICA

About Vee

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I’m sO HAPPY YOU’RE HERE & WELCOME! I’M VEE, A BROOKLYN NATIVE with a passion for EXPLORING HIDDEN GEMS, CULTURAL EXPERIENCES & EXCITING EVENTS IN NYC. FOLLOW ALONG AND LET’S UNCOVER NEW DESTINATIONS TOGETHER.

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