Where are the cheapest places to travel?
Where Are the Cheapest Places to Travel in 2025?
Ranked by Real Costs: Flight Drops, Currency Wins, and Local Prices
You’ve probably experienced it: staring at a flight search engine until your eyes glaze over, wondering why a “budget” vacation suddenly costs as much as a used car. In my 10 years of analyzing travel markets, I’ve seen plenty of “cheap lists” that suggest destinations where the hotels are cheap, but the flights cost a fortune.
That ends here.
Stop guessing where your money goes further. To create this definitive guide for 2025, we analyzed data from 40+ global currencies, the latest Post Office Worldwide Holiday Costs Barometer, and Skyscanner’s 2025 flight trend data.
We aren’t just looking at the price of a hostel bed. We are looking at the “Total Trip Cost”—including the price of a beer, a three-course meal, and the airfare to get you there. Whether you are a backpacker, a family seeking an all-inclusive deal, or a digital nomad, this is where the US Dollar and Euro reign supreme in 2025.
- The absolute cheapest country to visit globally in 2025 (It’s not Thailand).
- European destinations that are actually affordable.
- The “Flight-First” strategy: Luxury spots with massive airfare price drops.
- Real cost breakdowns: The price of a coffee, beer, and meal.
The Global Value Winners: Top 3 Cheapest Countries
When we look at the “Basket Cost”—a metric used by industry experts to measure the price of eight tourist staples (including a meal for two, drinks, and suncream)—three countries stand out as the undisputed champions of value for 2025.
1. Vietnam (The Overall Champion)
For years, travelers debated whether Thailand or Vietnam offered better value. In 2025, the data has settled the score. Vietnam is currently the best value destination in the world.
What does this mean for your wallet? It means luxury is accessible. In Hoi An, you can find boutique hotels with pools for under $30 a night. But the real savings are in the daily spend. A local beer (Bia Hoi) can cost as little as $0.20, though even a bottle in a restaurant rarely exceeds $1.50.
The Real Cost:
Mid-range daily budget: $55 USD
Cost of a 3-course evening meal for two (with wine): ~$39 USD
2. South Africa (Best Long-Haul Value)
Usually, “cheap” and “long-haul” don’t belong in the same sentence. South Africa is the exception. While the flight might cost more than a hop to Mexico, the on-the-ground costs are staggeringly low due to the exchange rate.
According to the Post Office Worldwide Holiday Costs Barometer 2024, Cape Town is the runner-up for global value. The data shows that a three-course meal for two, including a bottle of house wine, averages under £35 ($44 USD). That is pricing you haven’t seen in the US or Europe since the 1990s.
If you love gourmet food and wine, Cape Town effectively offers a 50-70% discount compared to Napa Valley or Tuscany.
3. Kenya (Mombasa)
For a mix of beach relaxation and wildlife, Mombasa offers incredible value. While safaris deep in the Maasai Mara can be expensive, the coast is remarkably affordable. The cost of tourist staples here has dropped, making it a prime candidate for travelers who want an exotic experience without the Maldives price tag.
Cheapest Places to Travel in Europe (Yes, It’s Possible)
Europe is notorious for draining bank accounts, but if you steer clear of London, Paris, and Zurich, you can find pockets of extreme value. In my experience, shifting your geography just a few hundred miles east or south can cut your daily expenses by half.
Bulgaria (Sunny Beach)
If you are looking for a classic sun-and-sea vacation on a shoestring, Bulgaria remains undefeated.
While it may not have the cultural cachet of the Italian Riviera, the Black Sea coast offers expansive sandy beaches and a pint of beer for under $2. It is particularly popular for younger travelers and families looking to maximize their budget.
Portugal (The Algarve)
If you prefer Western Europe, Portugal is your safe haven. It consistently ranks as the best value within the Eurozone. Laura Plunkett, Head of Travel Money at Post Office, notes: “It’s interesting to see the Algarve back at the top of the barometer chart again and this is largely down to the remarkable consistency in its low prices for meals and drinks.”
A coffee in the Algarve costs roughly $1.00—compare that to $4.00 in Paris or $5.00 in New York.
Nice, France (The Flight Deal Surprise)
Wait, the French Riviera? On a cheap list? This is where our strategy shifts from “cheap hotels” to “cheap logistics.” Sometimes, the savings come from getting there.
According to the Skyscanner Travel Trends 2025 Report, economy class return flights to Nice, France, have seen a 27% price drop for 2025 travel. While accommodation in Nice can be pricey, the massive savings on airfare can offset a higher daily budget. By staying in a hostel or an Airbnb slightly outside the Promenade des Anglais, you can hack a luxury destination for a mid-range price.
The “Flight-First” Strategy: Destinations with Price Drops
One of the biggest mistakes I see people make is fixing their heart on a destination and then paying whatever the airline demands. A smarter way to travel in 2025 is to let the flight price dictate the destination.
Data from Kayak’s Travel Check-in 2025 reveals that average flight prices are down 7% globally compared to last year. However, some destinations have seen much steeper drops.
According to Skyscanner’s 2025 data, here is where airfare has plummeted:
- Castries, St. Lucia: -25% price drop.
- Bridgetown, Barbados: -24% price drop.
This is significant because the Caribbean is usually excluded from budget lists due to high resort fees. However, saving $300-$500 per person on flights opens up the budget for better hotels or dining.
Cheapest Countries for Digital Nomads (Cost of Living Focus)
If you aren’t just visiting for a week but planning to stay for a month or more, you need to look at the Cost of Living Index. This measures rent, groceries, and utilities.
India & Bangladesh
For absolute bottom-dollar living costs, South Asia remains unmatched. According to the Numbeo Cost of Living Index 2025, Pakistan, Egypt, and India rank as the countries with the lowest Cost of Living in the world. In India, a comprehensive monthly budget of $800 allows for a very comfortable lifestyle that would cost $4,000 in the United States.
Argentina
Argentina is a unique case that requires a bit of “insider knowledge.” While inflation is high, the exchange rate for foreign tourists makes it incredibly affordable.
Travelers often utilize the “Blue Dollar” rate (an informal but widely accepted exchange rate), which can yield nearly double the pesos for your dollars compared to the official bank rate. This makes world-class steak dinners and Malbec wine cost a fraction of what you’d pay elsewhere. However, the economic situation is volatile, so it’s vital to check current rates before booking.
Interactive Comparison: The 2025 “Beer & Burger” Index
To help you visualize the difference, we’ve compiled a comparison of estimated costs for common items across three tiers of destinations. (Data estimates based on Numbeo and Post Office averages).
| Item | Hoi An, Vietnam (Budget King) | Algarve, Portugal (Euro Value) | New York, USA (The Benchmark) |
|---|---|---|---|
| Local Beer (0.5L) | $0.80 – $1.50 | $2.50 – $3.00 | $8.00 – $10.00 |
| Coffee (Cappuccino) | $1.80 | $2.00 | $5.50 |
| 3-Course Meal (2 People) | $39.00 | $50.00 | $120.00+ |
| Suncream | $4.00 | $6.00 | $14.00 |
5 Tips to Travel Cheaper in 2025 (Expert Advice)
1. Embrace “Wanderlost”
We often get stuck in analysis paralysis. Laura Lindsay, Global Travel Trends Expert at Skyscanner, explains the value of flexibility: “Tools like ‘Cheapest Month’ and ‘Explore Everywhere’ empower travelers to discover the best deals… Fear of Better Offer (FOBO) and the unknown often freeze travelers in their tracks.”
The Hack: Instead of searching “New York to London on July 15th,” search “New York to Everywhere in July.” You might find a $300 roundtrip to Lisbon instead of an $800 ticket to London.
2. The Japan Anomaly
Is Japan cheap? Historically, no. In 2025? Yes. The Japanese Yen has hit historic lows against the US Dollar (hovering around 150 JPY to 1 USD). This has increased tourist purchasing power by roughly 30% compared to 2019 levels. A steaming bowl of high-quality ramen in Tokyo now costs about $6.00 USD. If Japan has been on your bucket list, 2025 is the financial window to do it.
3. Avoid “Cognitive Juggling”
Trying to compare 50 destinations causes fatigue, which leads to bad financial decisions. Dr. Faye Begeti, a Neuroscientist collaborating with Skyscanner, notes: “Planning a holiday can become exhausting due to the cognitive juggling of multiple options. This can drain mental resources and turn excitement into exhaustion.”
The Fix: Pick one region (e.g., Southeast Asia) and stick to it. Don’t try to compare Bali against Cancun against Lisbon simultaneously.
4. Check the “Alternative” Lists
Nitya Chambers, Executive Editor at Lonely Planet, suggests looking at their “Best in Travel 2025” list for under-the-radar spots: “Highlighting destinations like Cameroon and Lithuania that offer incredible value and culture without the crowds.” These spots haven’t been hit by the “Instagram tax” that inflates prices in places like Santorini or Tulum.
5. Monitor Consumer Trends
Despite inflation, travel demand isn’t slowing. According to the Amex Trendex 2024, 84% of travelers plan to spend the same or more on travel in 2024/2025. Because demand is high, “waiting for a last-minute deal” is risky. Booking 3-5 months in advance is generally the sweet spot for the lowest prices.
Frequently Asked Questions
What is the absolute cheapest country to visit right now?
Based on the Post Office Worldwide Holiday Costs Barometer 2024, Vietnam is the cheapest country for tourists, with the lowest costs for meals, drinks, and essentials. Laos and Cambodia are also extremely affordable alternatives in the same region.
Where is the cheapest place to fly from the US?
This depends heavily on your departure hub. However, for 2025, Mexico and Central America (Guatemala, El Salvador) remain the cheapest international flights from the US. Surprisingly, flights to Nice, France and Dublin, Ireland are showing significant price drops for East Coast travelers.
Is Vietnam cheaper than Thailand for tourists?
Yes. While both are affordable, Thailand’s prices have risen due to massive tourism demand. Vietnam is currently estimated to be 15-20% cheaper than Thailand for accommodation and dining, specifically in areas like Hoi An vs. Phuket.
Is Japan expensive in 2025?
No, Japan is surprisingly affordable right now due to the weak Yen. While flights to get there can be pricey, on-the-ground costs for food and transport are comparable to, or cheaper than, many Western European countries.
Conclusion: Your 2025 Budget Strategy
The narrative that “travel is too expensive” is only true if you insist on traveling like it’s 2019. The travel landscape has shifted. The Dollar is strong against the Yen and the Rand. Flight prices are dropping for specific European and Caribbean hubs. And countries like Vietnam are actively competing for your business with lowered costs.
Key Takeaways:
- Go East for Value: Vietnam is the undisputed king of budget travel this year.
- Go South for Luxury: South Africa offers 5-star experiences for 3-star prices.
- Watch the Flight Drops: Don’t ignore “expensive” destinations like Nice or St. Lucia until you’ve checked the airfare—that’s where the 2025 savings are hidden.
The world is still open, and it doesn’t have to cost a fortune to see it. It just requires trading “tourist traps” for value destinations.
