South America on a Budget: What a Trip Really Costs

Spread the love

Some links in this post are booking links. If you book through them we may earn a small commission at no extra cost to you. We only link to services we would use ourselves, and it never changes what we recommend.

South America has a reputation as a budget destination, and it can be one, but the range is wide. Bolivia and parts of Peru are genuinely cheap; Chile, Uruguay and Brazil’s big cities are not far off European prices in places.

Here is where the money actually goes, and where the savings genuinely are.

The cheap countries and the expensive ones

As a rough ordering from cheapest to most expensive for a traveller: Bolivia, then Peru, Ecuador and Colombia, then Brazil and Argentina in the middle with enormous internal variation, then Chile and Uruguay at the top.

Argentina is the wild card. Currency conditions there change frequently enough that it has swung between being one of the cheapest and one of the most expensive countries on the continent within a couple of years. Check the current situation close to your departure rather than relying on older reports.

Where the money really goes

Long-haul flights. Usually the single largest line item, and largely fixed. Booking well ahead and being flexible about which city you fly into is the main lever.

Internal transport. The continent is vast. Overnight buses are cheap and often comfortable, but budget airlines now frequently beat them on value once you count a lost day. Compare both.

The headline experiences. Machu Picchu, the Galápagos, Torres del Paine refugios, Amazon lodges, Iguaçu and the Uyuni salt flats are the things that break budgets. They are not incidental costs; price them individually before you set a daily figure.

Accommodation. Hostels and guesthouses are widely available and good value almost everywhere. This is the easiest place to save without much sacrifice.

Food. Eating where locals eat, particularly the set lunch known as menú del día, almuerzo or prato feito depending on the country, costs a fraction of a tourist-district dinner and is often better.

Price it up

Costs vary enormously by country, so compare before you commit to a route:

Three rough travel styles

Backpacker. Hostel dorms, buses, set-lunch meals, self-catering some nights, and picking two or three splurge experiences for the whole trip rather than all of them.

Mid-range. Private rooms in guesthouses or small hotels, a mix of buses and internal flights, restaurant dinners most nights, and most of the headline experiences included.

Comfortable. Boutique hotels, internal flights throughout, private transfers and guides, and lodges rather than basic accommodation in remote areas such as the Amazon and Patagonia.

The gap between backpacker and comfortable in South America is larger than in most of Europe, because remote-area lodges and guided access carry a real premium.

Fifteen ways to spend less

Travel in the shoulder season; prices in Patagonia and Peru drop sharply outside peak.
Eat the set lunch as your main meal and keep dinner light.
Take overnight buses to save a night’s accommodation, on routes where the service is reputable.
Book Machu Picchu, Galápagos and Torres del Paine directly rather than through a home-country agency.
Use local budget airlines but read the baggage rules, which are strict.
Buy a local SIM or eSIM on arrival rather than roaming.
Withdraw larger amounts less often to reduce ATM fees, and check your bank’s foreign transaction charges.
Stay in a neighbourhood one step out from the tourist centre.
Walk the free walking tours and tip the guide properly; they are genuinely good in most big cities.
Cook occasionally; markets are cheap and excellent.
Share long taxi transfers with other travellers, which hostels usually help arrange.
Skip the internal flight where a six-hour bus exists and the view is worth it.
Avoid airport currency exchange entirely.
Choose one country in depth rather than four in a rush; transport is what drains budgets.
Carry a refillable bottle with a filter rather than buying bottled water daily.

Where not to economise

Travel insurance, including altitude, hiking and any adventure activity you plan.
Bus company choice on long routes. Pay for the reputable operator.
Licensed guides for glaciers, high-altitude trekking and jungle trips.
Acclimatisation days at altitude. Rushing Cusco or La Paz to save a night can cost you the whole trip.

Frequently asked questions

How much should I budget per day?

It varies too much by country and style to give one honest figure. Build a budget by pricing your actual route: accommodation in the specific towns, the specific experiences, and transport between them. That will be far more accurate than any daily average.

Cash or card?

Cards are widely accepted in cities, but carry cash for small towns, markets, park entrances and rural transport. Keep a reserve separate from your wallet.

Is the Galápagos worth the cost?

It is expensive and unlike anywhere else. Land-based island hopping is considerably cheaper than a live-aboard cruise and still excellent.

Which single country gives the best value?

Colombia and Peru both offer a lot of variety for the money, with good internal transport and well-developed budget accommodation.