Cheapest Places to Go on Holiday: Where to Stretch Your Budget

Trying to pick the cheapest holiday spot can feel like chasing a moving target. Prices change all the time, and those so-called 'cheap deals' can come with hidden costs. So what actually makes a holiday destination cheap? I’m not just talking about getting a flight on sale. You want your whole trip—hotels, food, transport—to be affordable once you get there. A place might have rock-bottom Airbnbs but crazy prices for anything else. Been there, hated that.

The real trick? You need to zoom out and look at your total daily spend. That’s what separates a truly budget-friendly spot from a ‘cheap in theory’ place. Nobody wants to fly halfway across the world just to live on instant noodles. Let’s get into the places where you can chill, explore, and actually live a little—even if you’re counting every penny.

• How We Define ‘Cheapest’ for Holidays
• The Top Budget Destinations in 2025
• Real Costs: What to Expect on the Ground
• Travel Hacks for Saving Even More
• Avoiding Common Money Traps
• Unusual Cheap Getaways You Haven’t Thought Of

How We Define ‘Cheapest’ for Holidays

If you’re looking for a cheap holiday destination, you’ve probably noticed the word "cheap" gets tossed around loosely. But what makes a place truly affordable for your wallet? It’s not just snagging a last-minute flight or sleeping somewhere sketchy. The real deal comes down to your “daily cost” – what you spend from the time you wake up to the time you crawl into bed. That covers more than just a plane ticket.

Let’s break it down. When pros rank the cheapest places to visit, they look at these main costs:

• Accommodation (hostels, budget hotels, Airbnb rooms, or a basic guesthouse)
• Meals (two cheap local meals out and a drink—beer, juice, coffee, you name it)
• Public transport or getting around town
• Some cheap activities or entry fees if you want to see stuff

If you want numbers, the travel site BudgetYourTrip shows in 2024, the average daily cost for a budget traveler in Vietnam, for example, was just under $40 USD if you stick to local spots and street food. Pop over to Paris, though, and it’s more like $120 a day—and that’s being frugal.

But stats only go so far. You have to factor in hidden extras—think ATM fees, water, data plans, and dumb tourist taxes. That free walking tour you spotted online? It usually ends with guilt-tripping for tips. I always add a little extra to my budget for these sneaky charges.

You also have to watch out for seasonal price swings. Go to Greece in August, you’ll pay double or triple what you’d pay in early May or October. I learned this the hard way when even street food got pricier thanks to a sudden crush of tourists.

"A cheap holiday isn’t where you spend the least, but where you get the best value for what you pay" — Lonely Planet guide

So, the affordable holidays on my list aren’t just about the lowest price tag but about where your cash actually goes far. I’m looking at places where you can eat, sleep, and explore without feeling shortchanged. Think of it like choosing a housebrand product that tastes the same but costs half as much—smart, right?

The Top Budget Destinations in 2025

It’s wild how a few places still manage to be ridiculously affordable for travelers, even with prices creeping up everywhere. Below are some of the most cheap holiday destinations in 2025 that deserve a spot on your radar, whether you’re travelling solo, with friends, or bringing the whole chaotic family.

• Vietnam: Street food for a dollar, clean guesthouses for under $15 a night, and bus rides across the country for less than your morning coffee back home. Cities like Hanoi and Hoi An remain some of the best value spots in Southeast Asia. The banh mi here is a game changer.
• Portugal: Europe is pricey, but Portugal stays surprisingly affordable, especially outside Lisbon and Porto. You’ll find cozy Airbnb stays by the coast in the $30-40 range and bountiful seafood. Public transport is cheap too, making it an easy place to explore without a car.
• Mexico: Not just for spring breakers. Cities like Oaxaca and Mérida offer budget guesthouses, legit tacos for 50 cents, plus free walking tours. Bus travel is super reliable, and the vibe is always friendly to travelers watching their spending.
• Albania: Albania is getting talked about more and more in travel circles, but it’s still flying under the radar. Expect beaches that look like Greece, hostel beds under $10, and fresh seafood dinners for five bucks. The capital, Tirana, is lively and way cheaper than most European cities.
• Turkey: If you time it right, you can see ancient ruins, swim in the Mediterranean, and eat your way through Istanbul—all for a lot less than in neighboring countries. The Turkish lira has dropped, making it a prime time for budget travelers.

Here’s a quick look at typical daily expenses for each place in 2025. Out-of-pocket costs will change depending on your travel style, but this table shows ballpark figures per person per day, including basic room, food, and simple transport.

Picking any of these top affordable holidays means you’re set for a good time without the after-trip credit card panic. Watch out though—word keeps spreading, so prices in these spots might not stay low forever.

Real Costs: What to Expect on the Ground

If you’re eyeing cheap holiday destinations, the real test is how much you’ll spend once you land. Cheap plane tickets are great, but what if a cup of coffee costs as much as dinner back home? Here’s what it really looks like for some of the top affordable spots this year.

Take Vietnam. A solid, tasty meal from a local street vendor will set you back about $1.50. Guesthouses and budget hotels? Expect $10–$20 per night for a private room. Public buses cost less than $1 a ride, so getting around is simple and super cheap. Same goes for backpacker favorites like Cambodia and Laos, where daily budgets—accommodation, food, transport, fun—often sneak in under $30 a day.

Eastern Europe is another win for affordable holidays. Cities in Albania, for instance, have hostel bunks for $8–$12 and meals at family-run restaurants for around $5. That’s dinner with a drink included, not just some plain bread. Public transport is even cheaper—think less than a dollar a ride in most places.

Let’s get real with some up-to-date numbers for 2025. Here’s a quick look at what you’d spend in a few cheapest places to visit:

Another thing that makes a destination one of the true cheapest places to visit is the lack of sneaky tourist fees. Some countries hit you with high entry costs or force you onto expensive tours just to see anything good. Others—like those above—let you explore solo with public transport, free parks, and street markets. That’s where you save the most money without cutting out the fun.

Tip: Don’t always trust the first "local deal" someone offers. Sometimes what looks cheap compared to back home isn’t the real local price. Check what locals pay (I always ask my hotel receptionist or just peek what others do at food stalls). Comparing actual costs on the ground is key for getting that true budget travel experience.

Travel Hacks for Saving Even More

When you’re on a budget travel mission, every little trick counts. It’s not just about picking a cheap destination—how you plan and what you do there can bring your costs down even further.

• Book flights midweek. Airlines tend to drop prices on Tuesdays and Wednesdays. Apps like Skyscanner and Google Flights let you see a whole month of prices, so you can pounce when fares are lowest.
• Travel in the shoulder season. That’s the sweet spot between high and low season—think May or September in Europe, for example. You skip the crowds and often pay up to 40% less for both hotels and activities.
• Use local transport instead of taxis or tours. Buses and trains in places like Vietnam or Portugal are not only dirt cheap but let you see more of the real area. Grab free city maps and use Google Maps offline to avoid wasting data.
• Eat like a local. Street food in Bangkok, tapas in Granada, or set lunches in Mexico City can cost under $5. Look for busy spots where local workers eat—you’ll usually get the best bang for your buck.
• Stay in hostels, guesthouses, or homestays. Hostelworld and Booking.com let you filter for free breakfast and kitchen access, so you can save on two meals a day. Sometimes you can even find places that throw in bike rentals or city tours for free.
• Tap into discount cards and free stuff. Cities like Budapest and Prague offer discount tourist cards that slash prices on transit and museums. Check local Facebook groups—sometimes people are giving away leftovers, day passes, or even ride shares.

Curious how much you might actually save by following these hacks? Here’s a quick look at daily savings in some popular cheap holiday destinations:

These numbers include budget stays, local food, and public transport—proof that a few smart choices make a huge difference. Don’t forget, the little things add up. Refill a water bottle instead of buying new ones, look for free walking tours, and don’t be afraid to haggle at markets where it’s normal.

Avoiding Common Money Traps

Just because a country is known for being cheap doesn’t mean you won’t find ways to overspend. Loads of travelers get caught out by sneaky charges or rookie mistakes. Knowing about these can seriously stretch your budget travel adventure way further.

One of the biggest money traps? Airport transfers and taxis that charge "tourist rates." Instead, always check if local buses or trains connect the airport to the city. In places like Budapest and Hanoi, the public transport from the airport is easy, safe, and usually under $2. A taxi driver quoting a flat fee rarely means a bargain. Use taxi apps (like Bolt or Grab) so you don’t get fleeced.

ATM fees can also add up fast if you're withdrawing cash in small amounts. Try to use a no-fee travel card, and always pick the local currency at ATMs and shops (skip the "Do you want to pay in your home currency?" offer; that's called dynamic currency conversion, and it’s always a rip-off). In Thailand, for example, ATMs usually slap on a 220 baht fee—around $6—no matter how much you take out, so pull out larger amounts to avoid repeated costs.

• Accommodation: Don’t assume hostels are always the cheapest; in some cities, small guesthouses or local apartments cost less and are often better quality. Always compare with local booking sites, not just the big names like Booking.com.
• Food and drinks: Eating at restaurants in touristy spots easily doubles your food cost. Head a few blocks away or search Google Maps for places with lots of local reviews. In cities like Istanbul, local canteens and street food stands serve up filling meals for less than $3.
• Attractions: Skip the pricey day tours and organize your own trips. Public transport often takes you right to most sights, and entrance fees are usually lower than what tour companies charge.

You'd be surprised how quickly things like bottled water and data roaming charges add up. Bring a refillable bottle—most parts of Eastern Europe and Southeast Asia have filtered water stations. Buy a local SIM card (don’t bother with international roaming) for the best deals on data.

If you want a real cheap holiday destination, spend less on the boring stuff and more on the experiences. Stick to these habits and you won't fall into the usual money traps. Trust me, my bank account (and Whiskers) approve.

Unusual Cheap Getaways You Haven’t Thought Of

When people hear cheap holiday destinations, they usually think of eastern Europe or Southeast Asia. But there are some surprisingly affordable places slipping under most people’s radar right now.

Laos is one of those spots. Everybody flocks to Thailand, but just next door, you can get guesthouses for $6 a night, street food for a couple dollars, and even a river cruise for less than your lunch at home. Buses between cities are usually under $10, making it easy to explore multiple towns cheaply.

If you want a European vibe without the European price, check out Albania. Their beaches on the Riviera rival Greece, but accommodation, meals, and even taxis are a fraction of the cost. A hotel room in Saranda can go for as little as $20, and a huge seafood dinner rarely tops $10. The Ottoman city of Gjirokaster is another gem—UNESCO, loads of history, but very easy on your wallet.

Curious about the Americas? Nicaragua is still a well-kept secret for travel on a budget. Surf towns like San Juan del Sur cost way less than Costa Rica just across the border. Basic hostels from $5 a night, local buses for pennies, cheap fun like volcano hikes and boat trips. Food from local markets costs about $3 a meal.

Looking for something wild? Mongolia isn’t just endless deserts. Summer’s a whole vibe with festivals, green steppe, and yurts (called gers) where you sleep for almost nothing. You can team up with other travelers for shared jeep tours, stretching your cash even further.

For those into city breaks, Belgrade, Serbia might shock you with its prices. It’s lively, filled with history, and you can eat well, stay central, and take in the nightlife for less than in Western capitals. Train travel in the Balkans is both an adventure and a real steal if you’re patient.

Here’s a quick glance at what you really pay per day in some of these unusual destinations:

One thing you might notice: these prices all let you actually do stuff, not just exist. The trick is to look outside the usual. Popular spots get expensive quick, so these less obvious places keep that affordable holidays vibe strong, and give you legit stories to tell.