15 Underrated Travel Destinations That Are Ridiculously Cheap

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Tired of expensive tourist hotspots? We’ve uncovered 15 incredible yet underrated destinations that offer unforgettable experiences at a fraction of the cost.

Gili Air and Gili Meno, Indonesia

From ancient cities to tropical paradises, these cheap underrated travel destinations around the world prove that travel doesn’t need a luxury budget.

Explore our handpicked selection of affordable destinations below.

15 Underrated Travel Destinations That Are Cheaper than the Rest

Ready to explore breathtaking destinations without emptying your wallet? Scroll down to discover 15 incredible places where your money stretches further

1. Vang Vieng, Laos

Vang Vieng in Laos
  • Budget: You should plan to spend around $18 (₭384,834) per day

This adventure paradise, set against a backdrop of dramatic limestone cliffs, delivers Southeast Asian thrills without Thailand’s tourist prices.

Once known only for partying, Vang Vieng has matured into an outdoor enthusiast’s dream.

Here you can kayak crystal rivers, explore vast cave systems, and hot air balloon over rice fields at a fraction of what you’d pay elsewhere in Asia.

Vang Vieng, Laos

Local guesthouses offer river views at backpacker rates, while restaurants serve up both Laotian specialties and Western comfort food at prices that let you stay for weeks.


2. Aswan, Egypt

Boat driving on river Nile in Aswan, Egypt
  • Budget: You should plan to spend around $19 (E£956) per day

This laid-back Nile city offers ancient Egyptian splendor without Cairo’s crowds or Luxor’s tourist premiums.

Glide down the Nile in a traditional felucca for a fraction of what cruise ships charge, while exploring Nubian villages and the magnificent Philae Temple.

Aswan, Egypt

Local markets serve up fresh koshari and grilled fish at prices that shame tourist restaurants, while simple hotels offer Nile views that would cost a fortune in northern Egypt.

From botanical gardens to ancient quarries, Aswan proves you don’t need to break the bank to experience the magic of ancient Egypt.


3. Kyrgyzstan

Kyrgyzstan
  • Budget: You should plan to spend around $21 (KGS1,853) per day

This Central Asian gem delivers Swiss-Alps-level mountain majesty at backpacker-friendly prices.

Stay in traditional yurt camps beside alpine lakes, trek through dramatic valleys, and ride horses across vast steppes for a fraction of what similar adventures would cost in Europe.

Issyk Kul Lake Kyrgyzstan

Local homestays offer authentic experiences with nomadic families and endless cups of kumis at modest prices.

From the shores of Issyk-Kul to the peaks of the Tian Shan mountains, Kyrgyzstan proves that epic mountain adventures don’t need a Western Europe budget.


4. Gili Air and Gili Meno, Indonesia

Gili Air and Gili Meno, Indonesia
  • Budget: You should plan to spend around $22 (Rp351,183) per day

These two smaller Gili Islands offer pristine paradise without the party prices of their bigger sister, Gili T. Meno delivers castaway dreams with empty beaches and resident sea turtles.

Air provides the perfect balance of serenity and sociability. Both islands share crystal-clear snorkeling spots and powder-white beaches at a fraction of what you’d pay in the Maldives.

Gili Air

Both islands share crystal-clear snorkeling spots and powder-white beaches at a fraction of what you’d pay in the Maldives.

Simple beachfront bungalows let you live the island dream without breaking the bank.

Local warungs serve fresh-caught fish and Indonesian classics at prices that make dining with ocean views an everyday affair.


5. Tbilisi, Georgia

Tbilisi, Georgia
  • Budget: You should plan to spend around $33 (GEL94) per day

Where ancient meets affordable, Tbilisi captivates with its striking blend of medieval churches, Soviet-era architecture, and modern design.

The city’s famous sulfur baths offer spa-like luxury at a fraction of Western prices, while the local wine culture lets you sample world-class vintages without the premium tag.

Tbilisi in Georgia

Feast on generous portions of khachapuri and khinkali at local markets for pocket change, while exploring the cobblestone streets of the Old Town.


6. Northern Thailand

Pagoda in Inthanon national park Chiang Mai Thailand
  • Budget: You should plan to spend around $38 (฿1,305) per day

Far from the tourist-heavy beaches of the south, Thailand’s northern region offers cultural immersion and mountain adventures at local prices.

Here you can trek through hill tribe villages, take cooking classes in ancient temples, and explore night markets for a fraction of what you’d spend in Bangkok or the islands.

Terrace rice field of Ban pa bong piang in Chiangmai, Thailand

Traditional guesthouses and boutique hostels in cities like Chiang Mai and Chiang Rai provide stylish stays without the premium price tags.

The legendary northern Thai cuisine costs less than street food in the south.


7. Pokhara, Nepal

Pokhara, Nepal
  • Budget: You should plan to spend around $45 (NP₨6,029) per day

Nestled beneath the Annapurna range, Pokhara delivers Himalayan majesty without Kathmandu’s chaos or tourist-trail prices.

This lakeside gem offers world-class trekking, paragliding, and mountain views at a fraction of what you’d pay for similar adventures in other countries.

Local guesthouses serve up hearty dal bhat with infinite refills, while cafes around Phewa Lake dish out both Nepali and Western favorites at prices that encourage long stays.

From free lakeside wandering to affordable boat trips, Pokhara proves that mountain paradise doesn’t need a premium price tag.


8. Hampi, India

Hampi, India
  • Budget: You should plan to spend around $45 (₨3,858) per day

This ancient capital looks like a landscape from another planet, where massive boulders cradle ruins of a 14th-century empire, all at backpacker-friendly prices.

Unlike India’s more famous destinations, Hampi offers its UNESCO-listed temples and epic sunsets without the usual tourist premiums.

Family guesthouses in nearby Hospet provide affordable bases, while local restaurants serve up sumptuous thalis at prices that feel like a time warp.

Rock climbing, bicycle rentals, and temple hopping cost little to nothing, proving that exploring one of India’s most spectacular landscapes doesn’t require a maharaja’s budget.


9. Koh Tao, Thailand

Koh Tao Thailand
  • Budget: You should plan to spend around $47 (฿1,595) per day

This dive paradise proves that underwater adventures don’t require Maldives-level spending.

Learn to scuba dive at some of the world’s most affordable schools, while staying in beachside bungalows that cost less than a hostel bed in Western destinations.

Best Beaches in Koh Tao Thailand - Sairee Beach Koh Tao, palm tree on the beach

Simple Thai restaurants and beach bars serve up fresh seafood and cold Chang at prices that let you extend your island time indefinitely.

From snorkeling with reef sharks to watching sunsets on some of the best Koh Tao beaches, Koh Tao delivers world-class marine experiences without emptying your diving fund.


10. Huacachina, Peru

Huacachina, Peru
  • Budget: You should plan to spend around $52 (S/.193) per day

This desert oasis proves that unique experiences don’t require deep pockets.

Budget hostels cluster around the lagoon, and sandboarding tours cost less than a typical day tour elsewhere.

Local restaurants serve generous portions of Peruvian classics at prices that encourage long stays, all set against spectacular free desert sunsets.


11. Hoi An, Vietnam

Hoi An Old Town Travel Guide
  • Budget: You should plan to spend around $53 (d1,338,058) per day

This enchanting UNESCO World Heritage site proves that postcard-perfect doesn’t have to mean expensive.

Budget travelers can find charming family-run guesthouses in the ancient quarter, while the town’s famous tailors craft custom clothing at prices that’ll make you forget about fast fashion.

Hoi An Ancient Town, Vietnam

The street food scene in Hoi An offers a culinary adventure that won’t dent your wallet, and cheap bicycle rentals make exploring both the historic center and nearby beaches a breeze.


12. Arequipa, Peru

Arequipa, Peru
  • Budget: You should plan to spend around $56 (S/.209) per day

The White City dazzles visitors with colonial grandeur at colonial-era prices.

Local guesthouses in converted colonial buildings provide atmospheric accommodation without the usual heritage premium, while traditional picanterías serve generous portions of local specialties.

The historic center can be explored endlessly on foot, offering similar architectural splendor to Cusco at more reasonable rates.


13. Essaouira, Morocco

Essaouira, Morocco
  • Budget: You should plan to spend around $56 (MAD557) per day

This windswept coastal city offers the perfect blend of culture and relaxation without Marrakech’s premium prices.

Fresh seafood grilled right at the port costs less than fast food back home, while the medina’s riads offer atmospheric accommodation at reasonable rates.

Wind sports enthusiasts can enjoy world-class conditions without world-class prices, and the artistic atmosphere comes with free gallery browsing.


14. Lombok, Indonesia

Lombok with a baby or toddler
  • Budget: You should plan to spend around $61 (Rp986,486) per day

Bali’s less touristy neighbor delivers the same tropical paradise vibes at a fraction of the cost.

From the pristine beaches of Kuta and Tanjung Aan to the waterfalls of the north, Lombok offers natural wonders without the inflated prices of its famous sister island.

Novotel-Lombok-Private-Peach_thumb.jpg

Local warungs serve up fresh seafood and sasak cuisine at honest prices, while simple bungalows provide beachfront living without the premium tags.

Whether you’re climbing Mount Rinjani, surfing uncrowded breaks, or island-hopping to the Gilis, Lombok proves that Indonesian paradise doesn’t need Bali’s price tag.


15. Ella, Sri Lanka

Ella Sri Lanka

Budget: You should plan to spend around $63 (LKR18,464) per day

This mountain paradise captures Sri Lanka’s magic without the coastal crowds and prices.

Tucked into the misty hills of tea country, Ella offers epic train journeys, waterfall hikes, and sweeping valley views from its famous Nine Arch Bridge, all at a fraction of what you’d pay elsewhere in Asia.

Family-run guesthouses serve up legendary Sri Lankan breakfasts, while local restaurants dish out flavorful curries at prices that let you sample everything on the menu.

The surrounding tea plantations offer free wandering opportunities in perfect mountain temperatures.


Final Thoughts on Cheap Underrated Travel Destinations

These hidden gems prove that some of the world’s most extraordinary experiences don’t require extraordinary budgets.

Whether you’re dreaming of mountain adventures, tropical beaches, or ancient cities, there’s an affordable paradise waiting for you to discover it.

Side Note: We’ve sourced our daily spending figures from Budget Your Trip – where real adventurers share their actual spending habits in each destination.

Want to explore more budget-friendly destinations? Check out our guides to:

Photo of author

Jolene Ejmont

Originally from South Africa, now living in Australia, Jolene is a wife and a mother to three beautiful daughters. Together with her family, she is embarking on a journey towards changing her current stress-filled life to one focusing on her dreams and her passion for travel. She wants to share her stories in the hope to inspire you to chase your own dreams!