One of the most popular questions we get asked is how much does it cost to travel around the world. This was our biggest question too, before we decided to take a big trip like this.
It costs a lot less than you probably think. Traveling long term, several months or longer, costs a lot less per day than what you might normally spend on a typical 10 day overseas trip.
There are a lot of factors that influence how much you will spend…which countries you visit, the types of accommodations you stay in, how often you move between cities, your mode of transportation, and how many tours and activities you do. In this post, we will shed some light on the costs associated with around the world travel, and give you a ballpark estimate on what to expect if you have plans for a trip like this.
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If you spend a lot of your time in developed countries (Europe, Australia, New Zealand, and Japan) your costs will be very high. In Europe and Australia, per person costs average $125 per day. For our family of four, we averaged $350 per day in these countries.
Asia, Africa, and South America are cheaper. In places like Cambodia, India, and Nepal, you can spend as little as $50 per person per day and still eat well and stay in nice accommodations. Our family of four averaged $185 per day in Southeast Asia, $180 per day in Nepal, and $155 per day in India.
Planning your trip such that you visit more countries with a lower cost of living will help you keep your expenses down. And that is what we did, while making sure they were still countries we were interested in visiting.
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During our 13 months of travel, we spent nine of them in Asia. We also spent six weeks in Southern Africa. These countries are on the cheaper end of the scale. We limited our time in New Zealand and Australia to seven weeks and we limited our time in Europe to just five weeks. All of these are on the more expensive end of the scale. We also knew we could travel back to Europe in the future more easily than we could Asia because of the travel distances from where we call home.
A budgeting resource we used is budgetyourtrip.com. This is a good resource if you want to get basic daily expenses for each country. Simply type in the name of the country and you will get an estimate of the average daily cost to visit that country. This is just an estimate, but it gives you a starting point of how much you can expect to spend in each country.
Your primary mode of transportation will have a huge impact on your budget. Plane flights are the most expensive, whereas bus travel is extremely cheap. If you really want to keep your budget low, limit your flights and fill in the gaps with bus and train travel.
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But remember, you get what you pay for. Bus travel is a very cost effective way of traveling, but it’s also slow and can get incredibly frustrating. When you are traveling long-term, you have the luxury of time, so adding in a day for travel between Bangkok and Chiang Mai may be worth the savings over the airplane flight.
In Europe, we traveled through Italy on the train and occasionally used the public buses. Once in Germany, we rented a car simply for the convenience of touring Bavaria.
While in Southern Africa, we rented a car for the entire six weeks we were there. We drove a lot, but saved a ton of money since we didn’t have to book flights for the four of us.
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While in Asia, we booked airplane flights for our longer hops and filled in the gaps with bus travel. We did take an occasional flight out of convenience. For example, to travel between Laos and Cambodia, it was going to be two bus journeys taking over 24 hours that would have cost just a little bit less than a plane flight. In circumstances like these, it was a no-brainer to take the flight.
We toured New Zealand from bottom to the top in a car, our best road trip ever. In Australia, we primarily traveled by car but we did fly between some destinations.
The more frequently you change location, the more money you spend. Every time you transfer to a new place, you have to spend money on transportation, which increases your daily expenditures.
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Many people, when they travel for a year, hop from place to place about every week or two. Some stay a month or longer, really getting to know a place. And, since there are no transportation costs during this time, expenses are usually very low.
We were different. We moved very frequently, averaging just three days per city. In 396 days, we slept in 149 different places. Our costs were higher because we moved so frequently.
For us, it was worth it. This was a once in a lifetime opportunity and we wanted to see as much of the world as possible. It was exhausting and we were burnt out towards the end of the year, but I’d do it exactly the same again.
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Accommodations can easily be one of the biggest ticket items in your budget. So saving money here saves a lot of money overall.
During long-term travel, most people stay in two or three star accommodations, hostels, or apartment rentals. If you are traveling solo, hostels are usually the most economical, because you can rent a bed for the night instead of an entire room for the night. The downside is that you will be sharing a bedroom and bathroom with other people. But on the flip side it provides a social environment for meeting other travelers.
Hostels and apartment rentals typically provide kitchen access. So you can save even more money by preparing your own food when staying in these types of accommodations.
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When planning your travels, it’s easy to say that you will just stay in low budget, economical places 100% of the time. But every once in a while, it is really nice to splurge. After going budget for so long, those little extras you get at a better place will really, really seem nice.
If you are traveling as a family, hostels usually are not more economical, since they charge per person. We had much better luck in bed and breakfasts, cheaper hotels, and apartment rentals.
Another way to keep costs low is to combine your transportation costs with accommodation costs. Booking overnight trains and buses are great ways to save money.
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Primarily, we stayed in 2 to 3 star bed and breakfasts and homestays. A homestay is basically a room in someone’s house that is set up similar to a hotel room. These were great because we got more personal attention, they were flexible with keeping all four of us together in the same room, and sometimes they would cook us dinner (for an extra fee). And it was an opportunity to immerse ourselves in the local community and gain a better appreciation of how the locals lived.
Most of the time, we all slept in one room. This really kept costs down, since we only had to pay for one room. In Asia, if we asked, hotel staff were usually accommodating in adding cots or extra mattresses to the room. It took some adjusting being together all of the time, but it was one of the main ways we saved money.
Every once in a while we did splurge, either to have access to a hotel pool, have a great view (a watering hole with elephants in Botswana!), stay in a unique hotel (silos in New Zealand), or get a dose of luxury (a villa in Bali for our wedding anniversary). But places like these were few and far between for us on our trip around the world.
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Food is another item that adds up fast on the trip budget. If you are really trying to keep costs down, minimize your visits to restaurants and maximize your visits to grocery stores. Preparing your own meals will save money.
Dining out every day gets expensive, even in cheaper countries. Alcohol, even just a glass of wine, can start to break the budget.
Eating the local food is much cheaper than dining in restaurants that serve a western menu. Sometimes, your best bet for good, cheap food are the street food stalls. Just pick a place that gets a lot of business and always seems to have a line to avoid a case of food poisoning.
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This is the fun part of traveling and yes, you do have to budget for it. Museum entrance fees, guided tours, zip lining, surf lessons, concerts, and excursions all need to be accounted for in your budget. So, how much do you need to add?
That’s a tough question. The answer depends on what you like to do. Hiking can be an inexpensive way to explore a place. Exploring a city on your own and visiting
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