Southeast Asia has long been a budget traveller mecca. With an abundance of cheap and delicious street food, affordable transport, and low-budget hostels, your money can go far here. In this breakdown of how to travel Southeast Asia on a budget, we’ve looked into four categories: food, transportation, activities, and accommodation, and looked into average daily budgets, top activities, and best budget hostels for top Southeast Asia destinations.

Southeast Asia Budget Travel Guide

Food

Eat where the locals eat: it’s a basic tip, but food is going to be your biggest daily expenditure. Kitchen hostels aren’t common in Southeast Asia, and if there is a kitchen, groceries tend to be more expensive than eating out. So, most travellers eat out 3 times a day. This might seem excessive, but the food is incredibly cheap by Western standards, and you’ll soon realise that this is a much easier and tastier option than attempting to cook in a hostel kitchen. 

If you want authentic food experiences that come at a low price, you probably won’t find them by Googling ‘best places to eat in X’ or ‘cheapest restaurants in X’. The best places probably aren’t on Google, and asking for personal recommendations is a great and easy way to engage with locals. Of course, not everyone speaks English, but your accommodation host and taxi drivers are safe bets. You can also learn how to ask for a certain food recommendation in the local language, such as the best Khao Soi in Chiang Mai. And don’t judge a book by its cover – the hole-in-the-wall, run-down-looking spot often serves the best food in the city. 

Unless you’re a seasoned traveller, or have immense self-belief in having a ‘strong stomach’, then your stomach will take time to adjust. That’s not to say that the food is dirty or will give you food poisoning, it’s just a different bacteria – like how first-year students often get ill when starting university, from mingling with new people and being exposed to new bacteria. If you’re new to the region or a country, then Googling cheap restaurants in the area is a good idea. That way, you can see reviews and ratings for peace of mind (and gut), without falling back on pricier Western restaurants. 

Accommodation

While hotels are relatively cheap in most parts of Southeast Asia, hostels are the go-to accommodation choice for most budget travellers. Most hostels in Southeast Asia sleep between 4 and 12 in a room, and the price is higher the fewer people there are in a room. So, if you’re serious about budgeting, you’ll need good earplugs. Not only are hostels affordable, generally ranging from £3 to £20 per night, but they’re also an invaluable source of budget backpacker information. You’ll most likely meet people on a similar wavelength, who’ve done what you plan on doing or are also going to the same destination that you are. Join forces and save cash where you can. 

HostelWorld is a lifesaver in Southeast Asia. It’s the easiest way to book accommodation, with an app that makes searching, comparing, and booking hostels easier than ever. If you’re sticking to a nightly budget, then you can input that into the price toggle. Many backpackers do have a nightly budget, but this can vary depending on the location. While you might refuse to pay over £5 per night for a bed in Luang Prabang, this price tag wouldn’t fly in Singapore. 

Don’t just rely on HostelWorld, though. Staying in homestays is an affordable and authentic way of connecting with a local family and experiencing their way of life. Not only is it affordable for you, but staying in a homestay is also a way of supporting the communities that you are visiting. The stay will also often include meals, and no food experience is better than a homecooked meal. In some homestays, it’s customary to pick up groceries or ask what groceries you can buy, to help contribute to the overall stay. You can also ask to help out with the cooking to learn traditional recipes and to get to know your host better. These family-feel homestays are generally found through word of mouth, but you can search Homestay or select the ‘homestay’ filter on Booking.com. However, there aren’t loads of options, and the ‘homestays’ on Booking.com are often guesthouses. But if you opt for a family-run guesthouse, at least you know you’re putting your money into the hands of locals – and they are still generally cheaper than hostels.

For the serious cash savers amongst us, Couchsurfing lets you find and book free accommodation worldwide. Like homestays, this is a culturally immersive opportunity to stay with locals. Temple hopping and bar crawls are fun, but the memories you’ll remember for life are your interactions with local people and cultural experiences. Couchers is another couch-surfing booking platform, but it is in its infancy and has few hosts so far.

Activities

From a motorbike adventure in northern Vietnam to island hopping in the Philippines, Southeast Asia is full of activities and experiences that become lifelong, fond memories. If you’re on a longer trip, then you won’t be doing paid activities every day, so the excursions that dot your trip are worth shelling out for. After all, you’re there for the full experience, and you might only be there once. But there are ways to save your money on excursions.

• Don’t book in advance Most of the time, you can get a better price when you book through hostels or local tour operators, rather than online tour sites. However, it is worth shopping around. This isn’t the case for all activities: for example, it’s best to book the Ha Giang Loop and Komodo Island Cruise in advance.
• Find a group You don’t always need a tour operator to book excursions. You can organise a trip yourself and book locally, and finding a group to book with lowers the cost. It’s a good opportunity to meet people in your hostel and ask if they want to join you for an excursion. 
• Be selective If you’re on a tight budget, we recommend really considering what activities and excursions you want to do. It’s easy to go with the flow and do the ‘done’ thing, but you might end up spending money on something that you don’t really want to do.

The most fun activities don’t always have to be the pricey adventures. Most hostels provide free or cheap activities – take advantage of walking tours, food tours, cooking classes, yoga, and more. Hostel-led activities are also a great chance to meet people.

Transportation 

Bus: You can always rely on buses in Southeast Asia to take you where you need to go. No matter the distance, you can get there by bus. It’s a popular transportation method for locals and tourists, so it’s a well-oiled machine. The buses are generally good quality, with comfortable VIP sleeper buses in Vietnam being a particular highlight. However, some are generic passenger vans. Either way, they’re convenient and affordable. You can book buses online at 12Go. 

Sometimes, the site will say the bus is fully booked – we recommend asking the host at your hostel, as they often have extra tickets on standby. Or they will know that another bus is making that same journey, and book you onto that. It’s usually cheaper to do this than booking online. 

Train: Southeast Asia does not have the most developed railway network, but there are exceptions. Thailand and southern Vietnam have the most developed railway networks in the region. Major cities, Kuala Lumpur and Singapore, are linked by train, but the process is long and expensive, with multiple changes. 

Flight: Flying is incredibly affordable in Southeast Asia. It can sometimes be cheaper to fly than to get the bus or the train if it’s a long distance – if flying is your preferred method of transport, then be sure to check in advance. Flights do get more expensive the longer you leave it, so book as far in advance as possible. AirAsia and domestic airlines are the most affordable options. 

Motorbike/Car: Scooting around by motorbike/moped is the most popular mode of transport in Southeast Asia. Bikes flood the streets, and many cities are punctuated by the sound of horns. However, they can be dangerous, and should only be driven by experienced, licensed drivers. Luckily, Grab and Gojek are excellent apps (similar to Uber) that let you book motorbikes and cars as a mode of transport. If you choose a motorbike, always remember to ask for a helmet if the driver doesn’t automatically give you one.

General Tips for Travelling Southeast Asia on a Budget

• Take a filtered water bottle. Not only is this better for the environment, but it prevents you from having to buy multiple bottles of water per day.
• Take a carry-on bag to avoid paying for hold luggage, and take packing cubes to help you condense more clothes into a small space. You can also tie your trainers on the side of your backpack when travelling via buses or trains, but you might be asked to pack them when getting on a flight
• If you’re booking a flight, check prices on Traveloka (a Southeast Asian flight comparison site) or Skyscanner to get timings, then book directly with the airline. It is usually cheaper and avoids the hassle of going through third-party companies in the event of cancellation or any other issues. AirAsia is generally the cheapest option. 
• Book overnight buses/trains to save on accommodation for the night.
• Volunteer in hostels. Hostel workers tend to live transient lifestyles, and they’re always looking for people to join them when someone else moves on. 
• While you’re getting used to the exchange rate, use the XeCurrency app to avoid overpaying. 

The 6 Cheapest Countries to Visit in Southeast Asia: Breakdown of General Costs

Laos

Average budget: £20 - £25 per day

Most expensive place to stay in Laos: Luang Prabang

Activity worth spending your money on: Hot air balloon ride in Vang Vieng (average £100)

Best budget hostel: Riverside Garden Hostel, Vang Vieng (from £3 per night, extra £2 to add breakfast)

Laos is a great place to claw back your money after visiting more expensive destinations. There are also a wide range of affordable family homestays and guesthouses, such as Vera Sunset Homestay. It’s located in Muang Không and gives visitors the opportunity to prepare food with the family, experience the rural Laos lifestyle, and enjoy the peaceful, riverside location. But really, accommodation in Laos is cheap throughout the country. Even in the popular destinations – Luang Prabang, Vang Vieng, and Vientiane – you can find a bed in a dorm room for as little as £3 per night. Food is incredibly cheap, and transport is affordable too – trains and buses between Luang Prabang and Vang Vieng are generally £12.

Philippines

Average budget: £30 - £40 per day

Most expensive place to stay in the Philippines: Boracay

Activity worth spending your money on: Coron to El Nido Expedition (average £255 for 3D2N)

Best budget hostel: Outpost Beach Hostel, El Nido (from £8 per night)

The Philippines is full of idyllic islands, white-sand beaches, turquoise waters, and lush palm tree jungles. It’s a tropical paradise, and while it is considerably cheaper than other tropical destinations, it’s one of the pricier Southeast Asian countries. Expect to pay around £10 per night for a decent hostel in the popular backpacker destinations. If you opt for homestays or guesthouses, this nightly price dips to around £6. 

Factor transport in your Philippines budget, too. The Philippines is a collection of islands, and popular destinations such as Siquijor, Coron, El Nido, and others, are reachable by ferry. However, some destinations, like Siargao, are impractically slow to reach by boat – most visitors fly here. You’ll probably have to get a few flights while in the Philippines – Philippines AirAsia, Philippines Airlines, and other domestic airlines are your best bet. Prices range from £35 - £50 on budget airlines – for example, a flight from Cebu City to Siargao is around £50.

Indonesia

Average daily budget: £20 - £35  

Most expensive place to stay in Indonesia: Bali

Activity worth spending your money on: Komodo Boat Trip (between £150 and £300 for a multi-night trip)

Best budget hostel: Dream Beach Hostel, Nusa Lembongan (from £5 per night)

The average daily budget does vary hugely in Indonesia. Some areas of Indonesia are extremely cheap, and alcohol isn’t widely consumed (even cheap drinks rack up quickly), while Bali, the Gili Islands, and Nusa Penida are pricier. However, the experiences you will have in Java tend to balance out the additional daily expenditure in other parts of Indonesia – the Mount Bromo sunrise and the Ijen trek, for example, are once-in-a-lifetime experiences. 

Accommodation varies significantly in Indonesia, too. The average starting price of a hostel in Bali’s popular locations, Gili Trawangan, and Nusa Penida is £9 per night. However, Malang, Yogyakarta, and other locations in Java are much cheaper, with hostels from £5 per night. And there are locations in Bali that are more affordable, too, such as Amed, Lovina, and Sidemen.

Thailand

Southern Thailand average daily budget: £40 - £50

Northern Thailand average daily budget: £25 - £30

Most expensive places to stay in Thailand: Koh Phi Phi, Koh Phangan during Full Moon Party, Koh Samui

Activity worth spending your money on: Staying in an overwater bungalow in Khao Sok National Park (around £150 for 3D2N)

Best budget hostel: The Famous Pai Circus Hostel, Pai (from £4.50 per night)

Thailand is arguably the original budget traveller destination. It’s long been a favourite amongst shoestring budgeted backpackers, and its popularity means there’s plenty of choice for everything, from transport options to food. 

We’ve separated southern and northern Thailand, as the daily costs vary significantly. Southern Thailand generally encompasses the coastal region and islands. While these destinations might be more expensive, central and northern Thailand’s affordability will balance it out. Chiang Mai is one of the world’s cheapest cities to visit, and even Bangkok is affordable, thanks to Thailand’s well-established street food and affordable transport. So, a few extra £ down south won’t hit your budget too hard. However, it’s something to bear in mind. 

Prices for a bed in the dorm room in Koh Phangan will triple during the Full Moon Party. Budget for this accordingly if you plan on going. 

Cambodia 

Average daily budget: £25 - £30

Most expensive place to stay in Cambodia: Phnom Penh

Activity worth spending your money on: Angkor Wat (£28 for one day or £47 for three days)

Best budget hostel: Onederz Hostel Siem Reap (from £3.70 per night)

Cambodia is a great destination for budget travellers. There is so much history here, which visitors can learn about through affordable tours and free museums. The accommodation is some of the cheapest in Southeast Asia, with beds in hostel dorms going for as little as £3. You’ll rarely pay more than £6 per night, unless you opt for a room with fewer beds or a female-only dorm.

Koh Rong is Cambodia’s tropical, toes-in-the-sand party island, and it’s a stark price difference to similar islands in Thailand. Accommodation is as cheap as the mainland, and daily costs, such as food, activities, and the occasional beer, are incredibly low. Ferries to and from Cambodian islands are affordable, too, averaging around £10 each way.

Vietnam

Average daily budget: £20 - £30

Most expensive place to stay in Vietnam: Ho Chi Minh (sometimes, but still generally budget-friendly)

Activity worth spending your money on: Ha Giang Loop (between £150 and £200 if you go with a group)

Best budget hostel: Cheerful Hostel, Hoi An (from £6 per night)

While Vietnam is an affordable destination, accommodation is not as cheap as in other parts of Southeast Asia. You can expect to pay around £6 - £10 for a bed in a decent hostel, and it’s a bit pricier in Hoi An. As one of the main international destinations in Vietnam, Hoi An is popular with all kinds of travellers, not just those on a budget. While it’s still significantly cheaper than other parts of the world, you might notice a slight increase in your daily budget. 

Vietnam’s extensive bus network is super impressive. There’s nowhere you can’t reach by bus, and it’s budget-friendly. For example, a 13-hour bus between Da Lat and Hoi An is £19. The buses feature lie-down seats, a curtain, and a plug socket to charge your phone. However, we recommend splashing out on the VIP buses for longer trips – the same journey between Da Lat to Hoi An is 11 hours and £26 on a VIP bus. VIP buses have fewer people, comfier seats, and pods for privacy.