Best places for budget travelers in South America

Affordable guest houses and economic travel paths in South America

South America offers some of the best value travel anywhere in the world, particularly along the Andes, where favourable exchange rates make food, accommodation and transport remarkably cheap even by backpacker standards. The region has decades of budget infrastructure built around this kind of travel.

The destinations on this list range from established backpacker circuits through the mountains, with hostels and overnight buses on every route, to pricier countries further south, where costs run noticeably higher but still well below North American or European equivalents.

Long-distance overnight buses remain the backbone of budget travel across the continent, covering huge distances for a fraction of flight prices. Shared dorm rooms typically cost only a fraction of private accommodation. Booking accommodation a few days ahead rather than on arrival tends to secure better rates during busier periods.

Country
Colombia
Where diverse landscapes meet culture
Colombia offers good value across a country with many landscapes. Hostels are plentiful and often include breakfast and kitchens. Comfortable long distance buses and cheap domestic flights link the coast and the Andes. Travellers can enjoy cities, mountains and Caribbean beaches without spending too much money.
Country
Peru
Ancient wonders meet diverse landscapes
Peru has a large backpacker trail with cheap hostels in every major city. Comfortable overnight buses link the coast, the desert and the Andes at low fares. Local markets and small restaurants keep daily costs low. Machu Picchu is the main big expense so travellers can save elsewhere.
Country
Ecuador
Compact country, immense biodiversity
Ecuador uses the US dollar and is small enough to cross quickly. Buses connect the Andes, the Amazon and the Pacific coast at low fares. Hostels and guesthouses keep lodging costs low on the mainland. Travellers can visit volcanoes, cloud forests and beaches within a few days.
Country
Bolivia
Land of dramatic climate contrasts
Bolivia is one of the cheapest countries in South America. Hostels, guesthouses and local restaurants all stay low priced. Long distance buses link cities and highlands at modest fares. Travellers can join tours to salt flats and mountain towns that give big landscapes for a small budget.
Country
Paraguay
Land of contrasting climate regions
Paraguay is a low cost country that sees far fewer tourists than its neighbours. Guesthouses and local restaurants stay cheap in Asuncion and in small towns. Buses connect the main places at low fares. Visitors can see old missions and quiet rivers at an easy pace.
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