The Ultimate Guide to Cheap International Vacations (and the Best Travel Insurance to Protect Them)

Last Updated: February 14, 2025March 19, 2025 — 6 min read

Believe it or not, you don’t need to empty your savings account to see the world. Planning a cheap international vacation is easier than you think, from budget-friendly destinations to clever travel hacks. 

But before you jet off on that affordable adventure, travel insurance is one expense you shouldn’t skip. 

Looking at our community and the places they travel to on a tight budget, we were able to pull together a list of a few locations that would keep the fun high and the trip costs low while still being protected and planning for any disruptions. 

Here’s why securing international travel insurance is as important as booking a cheap flight—and how to do both without spending a fortune.

Best Cheap International Destinations

1. Mexico: Sun, Sand, and Savings

• Best for: Beach lovers, foodies, culture seekers
• Budget tip: Stick to public beaches and eat at local taquerias for $1 tacos
• Estimated daily budget: $35-$50

Mexico remains one of the most affordable international destinations for travelers from the U.S. Budget-friendly cities like Mérida, Oaxaca, and Guadalajara offer cheap accommodations, delicious street food, and cultural experiences that rival Europe—without the hefty price tag. 

📍If you’re looking for tips on planning your Mexican getaway, check out our guide, which has something for everyone.  

2. Portugal: Europe Without the Price Tag

• Best for: History buffs, wine enthusiasts, digital nomads
• Budget tip: Avoid summer; shoulder seasons (spring/fall) are much cheaper
• Estimated daily budget: $45-$65

Portugal is consistently ranked one of the cheapest destinations in Western Europe. For less than a dollar, you can enjoy pastel de nata or Bifanhas, even authentic Peri-Peri rotisserie chicken, all super cheap and with bountiful sides. You can also hop on affordable public transport and take in breathtaking coastal views—all on a shoestring budget.

📍If you’re looking for tips on determining how much health insurance you need when traveling to Europe, we have a handy guide right here. 

3. Thailand: Southeast Asia’s Budget Paradise

• Best for: Backpackers, adventure seekers, food lovers
• Budget tip: Skip Phuket and Koh Samui—opt for Chiang Mai or Krabi instead
• Estimated daily budget: $30-$50

Thailand offers incredible value for money. Accommodations can be as cheap as $10 per night, and mouth-watering street food is often under $3 per meal. Thailand’s landscapes range from tropical beaches to lush jungles, ensuring endless adventure.

📍If you’re looking for recommendations for family activities while on your Thai adventure, check out our safe travel guide. 

4. Colombia: South America’s Hidden Gem

• Best for: Coffee lovers, history enthusiasts, outdoor adventurers
• Budget tip: Use budget airlines like Viva Air and Wingo to get around cheaply
• Estimated daily budget: $35-$55

Colombia is an underrated yet affordable international destination. From Cartagena’s colorful streets to Salento’s coffee regions, you’ll find stunning scenery, delicious cuisine, and welcoming locals—all at a fraction of European prices.

📍If you’re looking for packing tips for multi-stop trips, check out our five tips for packing light but smart.

5. Vietnam: A Foodie’s Paradise on a Budget

• Best for: Street food lovers, history buffs, adventure seekers
• Budget tip: Use sleeper buses and trains for affordable long-distance travel
• Estimated daily budget: $25-$45

Vietnam is a dream destination for budget travelers. Whether slurping a bowl of pho in Hanoi, cruising through the emerald waters of Ha Long Bay, or exploring the lantern-lit streets of Hoi An, every experience is rich yet inexpensive. Street food costs as little as $1 per meal, and accommodations remain affordable even in major cities.

📍If you’re looking for wallet-friendly honeymoon destinations, Vietnam is on the list, but so are these six other places, all for different tastes. 

6. Lima, Peru: Culture and Cuisine Without the Cost

• Best for: Foodies, history lovers, beachgoers
• Budget tip: Enjoy free walking tours in downtown Lima and Miraflores
• Estimated daily budget: $30-$50

Lima is a vibrant coastal city with colonial architecture, stunning ocean views, and world-class cuisine. For under $5, you can feast on fresh ceviche at local markets, explore ancient ruins like Huaca Pucllana, and catch breathtaking Pacific sunsets—all without overspending. The city’s public transportation and budget accommodations simplify exploring without breaking the bank.

📍If you’re looking for adventure in Peru, we have a guide to creating the perfect backpacking trip.

7. Budapest, Hungary: Europe’s Best Bargain City

• Best for: History lovers, spa enthusiasts, nightlife seekers
• Budget tip: Buy a Budapest Card for unlimited public transport and discounted attractions
• Estimated daily budget: $40-$60

Budapest is one of the most affordable capital cities in Europe. With its fairy-tale architecture, historic thermal baths, and vibrant ruin bars, the city offers a luxurious feel at a fraction of Western European prices. Entry to thermal baths starts at around $10, and you can enjoy a hearty Hungarian meal with wine for under $10.

📍If you’re looking for travel advice about Visa requirements to European Countries in the Schengen Area, we have you covered here. 

💡 Recommended Travel Insurance: AXA Assistance Silver – A budget-friendly plan with strong medical and trip cancellation coverage.

How to Travel Internationally on a Budget

Traveling abroad doesn’t have to cost a fortune. With a few smart strategies, you can save on flights, accommodations, and daily expenses—without skimping on adventure. Here are five practical tips to keep your wallet happy while exploring the world.

1. Be flexible with your travel dates.

Flights and accommodations can vary in price depending on the time of year, so the best way to save money is to be flexible. 

• Travel during the shoulder seasons (spring and fall) for cheaper flights and fewer crowds.
• Mid-week flights are often more affordable than weekend departures.
• Use fare comparison tools and set price alerts to snag the best deals.

2. Book Flights Like a Pro

Airfare is the most significant expense of any vacation, but it doesn’t have to be. 

• Consider flying into a central hub and booking a budget airline or train to your final destination.
• Opt for flights with layovers—they’re often significantly cheaper than direct routes.
• Use points or travel rewards credit cards to cover some (or all) of your flight costs.

3. Choose Budget-Friendly Accommodations

Skip the pricey hotels and find comfortable stays at a fraction of the cost.

• Look for hostels, guesthouses, or budget hotels with high ratings for safety and cleanliness.
• Vacation rentals and home-sharing services often provide better value, especially for more extended stays.
• Some destinations offer unique stays, such as ryokans in Japan or casas particulares in Cuba, that provide affordability and cultural immersion.

4. Use Public Transportation

Instead of spending on taxis or rideshares, get around like a local and save big.

• Research city passes that offer unlimited public transit for a flat fee.
• Many cities have bike-sharing programs or affordable scooter rentals.
• Book train or bus tickets in advance for the best rates if you travel between cities.

5. Take Advantage of Free Activities

Some of the best travel experiences don’t cost a dime.

• Many museums offer free admission days—check their schedules before you go.
• Enjoy the great outdoors with hikes, beaches, and public parks.
• City walking tours are often free or “pay what you want,” giving you an affordable way to explore with a local guide.

Cheap Travel Insurance: Why It’s Worth It

Can you skip travel insurance to save money? Think again. A simple medical emergency abroad can cost thousands—way more than the price of a travel insurance policy.

Here’s what the best cheap travel insurance plans should cover: 

✅ Emergency medical care (hospital visits, doctor fees, prescriptions) 

✅ Trip cancellations and delays (so you don’t lose money if plans change)

 ✅ Lost baggage (because missing luggage happens more than you think) 

✅ Adventure sports coverage (if you plan on hiking, diving, or skiing)

💡 Pro tip: The best way to find affordable international travel insurance is to compare plans on Squaremouth, where you can filter options by coverage type and budget.

Best Cheap Travel Insurance Plans for 2025

Finding the right travel insurance doesn’t have to be expensive. Whether you’re a budget-conscious traveler, a backpacker, or someone prioritizing medical coverage, affordable options offer solid protection. 

Below is a comparison of some of the best cheap travel insurance plans available on our marketplace that still provide as much coverage as possible. There are others, and we encourage you to compare your favorites based on your needs, too. 

Bottom Line: Travel Cheap, Travel Smart

A cheap international vacation doesn’t mean cutting corners on safety. By choosing budget-friendly destinations, using smart money-saving travel hacks, and investing in affordable international travel insurance, you can explore the world without financial stress.

Ready to book? Compare and buy the best affordable travel insurance plans here, and start planning your next budget-friendly adventure today!