How to backpack Southeast Asia on a budget
Limit your daily spending by sticking to local transport, eating at street markets, and choosing dorm beds in hostels. You can comfortably explore the region for $35 to $45 USD per day if you avoid tourist-trap pricing and stick to regional travel routes.
- Use local transport over tourist shuttles. Avoid 'VIP' tourist buses whenever possible. Use local bus stations, public trains, or apps like Grab for motorbikes. You will pay 50% to 70% less by booking at the station counter instead of through your hostel desk.
- Eat where the locals eat. Avoid restaurants with menus in English or photos of the food. If a street stall is crowded with locals, the food is fresh and cheap. Expect to pay $2 to $4 per meal at these spots.
- Master the 'Dorm + Water' rule. Book hostels with free refillable water stations. Buying plastic bottles adds up to $30+ a month. Carrying a reusable bottle is essential for your budget.
- Skip the booze. Alcohol is heavily taxed in countries like Malaysia, Indonesia, and Thailand. If you must drink, stick to local beers and buy them from 7-Eleven or local convenience stores rather than bars.
- Is it cheaper to fly or take the bus?
- Buses are cheaper but take longer. Budget airlines like AirAsia can be competitive if you book 3 weeks in advance and travel with only a backpack.
- How do I get the best exchange rate?
- Use a travel-friendly debit card like Charles Schwab or Revolut that refunds ATM fees. Avoid exchanging cash at the airport.