How Much Does It Cost to Backpack for a Year?

Getting away and traveling for a year can be exciting, but it can come with a hefty price tag depending on how you travel and the destinations you visit.

If you’re a budget traveler visiting inexpensive countries, you can backpack for a year for around $16,000. If you plan to be a budget traveler in more expensive countries, such as Western Europe, you may wind up spending $33,000 in a year.

Factors Influencing the Cost of Backpacking for a Year

Your style of travel, the places you go to, and how long you stay in each location influence can influence much money you spend.

Travel Style

Are you a budget-focused traveler, a spare-no-expense luxury explorer, or are you somewhere in between? Your travel preferences will impact how much you pay when vacationing for a year.

“Budget travel combines exploration and savings. Budget travelers prioritize cost cutting in transportation, meals, and activities,” said Aixa Diaz, AAA spokesperson. “Midrange travel is a happy medium, usually great for families. Travelers who seek middle-of-the-road travel look for savings where possible but also spend money on experiences. Luxury travel is the highest tier. Luxury travelers splurge on lodging, meals, and experiences.”

Destinations

Not surprisingly, where you go has a big impact on your total travel costs. Large, metropolitan cities can be pricier while rural destinations may be more affordable.

“Cities like New York, Los Angeles, Paris, and London will generally be more expensive than smaller towns in the suburbs or outskirts, but the thing to consider is transportation,” Diaz says. “Big cities that are popular with tourists are easy to get to. Towns off the beaten path may be cheaper when it comes to lodging and meals but could be costly to get to.”

Some regions—like Southeast Asia, however, have major cities that are affordable.

“I always recommend to go to Southeast Asia, which is by far the cheapest region in the world to travel, but it’s one that I find the most fascinating, as it’s a melting pot of cultures, cuisines, and the difference between one country to another is a lot more marked than in other continents,” says Juan Castells of Planet of Adventures.

Duration and Pace of Travel

Cynthia Matthews von Berg of Sharing the Wander traveled the world for three years with her family of four. The pace of travel made a big difference in their spending.

“We found that by doing shorter stays in more expensive locations, we could stay longer in less expensive ones,” von Berg says. “We spent between one to two months in a country, alternating between fast travel, five to six locations in that time, and slow travel, one location, an apartment for a month.”

Budgeting for a Year of Backpacking

Low-budget Travel

Budget travelers are in it for the sights and not the expenses. Staying in hostels, cooking your own meals, and getting around on public transportation all work for you.

“Buying groceries at local markets and cooking yourself will save you money,” said Diaz. “For budget entertainment, look for parks or museums that offer free visiting hours. Sometimes just sitting outside and people watching is entertaining enough!”

Mid-range Budget Travel

Mid-range travelers enjoy a splurge every once in a while and maybe a more comfortable accommodation. Diaz encourages mid-range travelers to plan ahead.

“If you and your group know you want to see a Broadway show in NYC or visit Sagrada Familia in Barcelona, plan ahead and get tickets ahead of time to avoid disappointment,” said Diaz. “It also helps to do your research ahead of time and identify restaurants that you would like to try. For lodging, familiarize yourself with a map of the city and find a hotel that offers amenities you enjoy and is located in an area that offers dining and entertainment options.”

High-end Travel

Luxury travelers like the best and travel like someone who enjoys the finer things in life. You aren’t afraid to splash out money on meals and accommodations.

“Luxury travel usually comes with high price tags associated with flights, business or first-class, hotels, suites or luxury short-term rentals, and experiences, high-end tours, multicourse meals,” Diaz says.

Elements of a Sample Travel Budget

How much should you plan on spending to travel the world per day? Von Berg and her family managed to do it for $150 a day, including flights and accommodations. She found that a hotel room could sometimes be cheaper than staying in a hostel.

“As a family of four, we sometimes stayed in hostels, but often a room for four in a hostel is more expensive than a hotel room with two double beds,” she says.

Von Berg saw the world with her family on a midrange budget. “We consider ourselves midrange in that we are not trying to eat all our meals from the grocery store, and we will not skip important UNESCO sites or major museums to save money, but we try to save where we can and travel as frugally as makes sense for our family,” she said.

Von Berg found that food and dining-out expenses varied greatly depending on the country being visited.

“In Paris, we struggled to eat a sit-down meal for under 90 U.S. dollars but could eat for a total of 12 dollars in Vietnam with dessert!” she says.

Transportation costs also varied widely. “In Cambodia, a bus ride to get to the elephant sanctuary in Mondulkiri from Siem Reap is currently nine hours and 18 U.S. dollars. That won’t get you an Uber across town in Vienna!” von Berg said.

For lodging, they tried to spend less than $2,000 a month through Airbnbs.

“In places like Dubai, finding affordable rooms can be tricky. There, we ended up paying $552 ($182/night) for three nights, for a small room with one of the kids on a fold-out couch. The best way to keep accommodation costs down is to stay longer, but in some locations, there’s just not much flexibility,” von Berg said.

People willing to travel on a shoestring budget can travel the world for much less.

“If you’re the adventurous shoestring type, picture dorm bunks, street food, and the occasional overnight bus,” said Bryce Collins, marketing director at INTRO Travel. “In regions such as Southeast Asia, parts of Latin America, or Eastern Europe, you could live basically on roughly $30 to $50 a day, which adds up to about $10,000 to $15,000 for the whole year.”

Midrange travelers spend more than that but still keep their expenses under $100 a day, according to Collins.

“Prefer a little comfort without blowing the budget? A blend of hostels and cozy guesthouses, café meals, and the odd guided tour will push the daily spend closer to $55 to $95. Over 12 months, that’s in the neighborhood of $20,000 to $35,000—still manageable if you move slowly and pick affordable destinations,” Collins said.

A luxury traveler can plan on spending much more for a year of travel.

“If you want boutique hotels, frequent flights, and private guides, plan on at least $50,000 for the year,” Collins says. “Upmarket spots in Norway or New Zealand can nudge that figure even higher.”

Travel insurance and travel visas are other items to keep in mind when you are planning a worldwide trip. Von Berg purchased travel insurance that covered her family for a year for $485. She purchased travel visas for her time in Southeast Asia.

“Most places don’t require U.S. travelers to get visas,” she says. “To enter Vietnam, (travel visas) were just over $25 per person; Cambodia was $36 per person. We had to get visas for Indonesia as well. In the year 2023, that included Southeast Asia, we spent just over $600 on various visas and associated fees.”

Tips for Reducing Costs

Traveling In the Offseason

Visiting a tourist destination at a less popular time, such as the offseason, will save you money on your travels.

“We visited Spain in December and got amazing deals on accommodation, fewer crowds at Alhambra, and cheaper flights. It felt like having Europe to ourselves,” said Isheeta Borkar, owner and author of Travelicious Couple.

Finding Free or Low-cost Activities

You don’t have to spend a lot of money to see and enjoy a travel destination.

Visiting parks and monuments, checking out museums with free visiting hours, hopping on local buses, checking out farmers markets and local gardens, nature hikes, or walks along the beach are cost-effective ways to visit a travel destination, Diaz said.

Utilizing Travel Hacks

Avoid weekends when arranging your travel times by air. “Book flights for Tuesday or Wednesday departures—those tend to be cheaper,” Diaz said.

And you may want to consider showing up to a destination without a reservation for your lodging. “In many countries, especially in Southeast Asia, the owners themselves are looking after the business and are happy to negotiate lower prices compared to the online booking platforms,” Castells says. “I have saved normally 30 to 50% from the online rates when I do this.”

Offering to volunteer at a hostel is another way to slash accommodation costs.

“Just ask in any hostel, anywhere in the world, if they need some help, and the vast majority of hostels are happy to take on volunteers at all times,” Castells says. “You will get, in return, free accommodation, and in most cases, food as well.”

The Bottom Line

Whatever your budget, you can see the world and have memorable travel adventures.

To stretch some dollars, travel to top destinations during the much cheaper and much less crowded offseason. Book flights on Tuesdays and Wednesdays when prices are slashed. Don’t be afraid to arrive at a destination without lodging for the night. You may be able to negotiate an excellent rate on the spot. With a little effort, you can lower your daily travel costs significantly.