Backpacking South America on a Budget: How Much Does It Really Cost?

Backpacking

28th July, 2025

Backpacking through South America is an unforgettable journey for many travellers, offering an exhilarating mix of vibrant cultures, ancient ruins, and breathtaking natural wonders. From the misty peaks of Machu Picchu in Peru to the sun-soaked beaches of Brazil, South America is a dream destination for adventurous souls. For many, it’s not just the iconic sites but also the spontaneous adventures along the way, overnight bus rides through the Andes, impromptu jungle treks, or lively street festivals that make backpacking here so memorable. However, embarking on a backpacking trip through South America requires careful planning, especially when it comes to budgeting. 

Typical Costs of Backpacking in South America 

Overall Budget Needed 

When planning a South America backpacking trip, one of the first questions on your mind is likely, “How much will it cost?” The average daily cost of backpacking in South America can range from £25 to £70, depending on various factors such as your travel style, the countries you visit, and the activities you choose. Here are some key considerations: 

1. Travel Style: Are you a shoestring traveller happy with dorm beds and street food, or do you prefer a bit more comfort? Budget-friendly backpackers often opt for hostel dormitories and local street eats, while others may splurge occasionally on private rooms or nice restaurants. 
2. Trip Duration: The longer you travel, the more you can spread out certain big expenses (like flights). Long trips also let you take advantage of slow travel, for example, staying put in one place for a while to get better monthly rates or using multi-stop bus passes, which can reduce the average daily cost. 
3. Country Choices: Some South American countries are pricier than others. For instance, Chile and Argentina tend to have higher prices for food and accommodation (similar to what you’d budget in parts of Europe), whereas Bolivia and Colombia are much more affordable. 
4. Group vs Solo Travel: Travelling with friends can help reduce costs by sharing accommodation (a private room split two or three ways can be as cheap as dorm beds per person) and pooling resources for groceries or car hires. Solo travellers might spend a bit more on private tours or transport, but can save by being more flexible with plans. 

Daily Budget Overview 

Cost Breakdown 

To further clarify how much it really costs to backpack across South America, let’s delve into a detailed breakdown of specific expense categories: 

1. Accommodation: South America offers diverse accommodation options, from ultra-budget hostels to homestays and eco-lodges. You can expect to pay between £5 and £30 per night for most backpacker accommodations. In cheaper countries like Bolivia or parts of Peru, a dorm bed might cost as little as £5. In more expensive cities, for example, Rio de Janeiro, Buenos Aires, or Santiago, dorm beds are usually closer to £10–£15, and a basic private room in a hostel or guesthouse might be £20–£40. Airbnb and local guesthouses are also popular; in some areas, you can get a private room via Airbnb for around £15–£25, which can be good for couples or those needing a break from dorms. Additionally, if you’re carrying camping gear, camping can be a cost-effective choice in areas like Patagonia or the Andes (some national parks have campsites for a small fee or free). 
2. Food & Drink: How much you spend on food largely depends on where and what you eat. In most South American countries, eating like a local is very affordable. You can enjoy delicious street foods – think empanadas in Argentina or arepas in Colombia – for £1 – £2 each. Many restaurants offer a menu del día (set lunch menu) for £2 – £5 that includes a couple of courses and a drink, especially in countries like Peru or Bolivia. Cooking your own meals is also an option; fresh produce from local mercados (markets) is cheap, and you could budget around £15–£20 per week for groceries if you mostly self-cater. Of course, if you treat yourself to Western-style cafés, craft beers, or upscale dining (perhaps a steak dinner in Buenos Aires or seafood in Lima), those meals might cost £10 – £20 each, still cheaper than back home in many cases, but something to factor into your budget. 
3. Transportation: Transportation costs can vary widely across the continent, but generally, local transport is very cheap. City bus or metro fares often range from £0.30 – £1 (for example, the metro in Santiago or buses in Bogotá). Long-distance intercity buses are the most common way backpackers travel between destinations: a 10-hour overnight bus might cost around £15 – £25 in countries like Peru or Colombia, and a longer 20+ hour luxury bus (with reclining “cama” seats) in Argentina, Chile, or Brazil could be £40 – £60. Opting for overnight buses not only saves you a night of accommodation but also maximises your daytime for exploring. In some cases, budget flights are worth considering, for instance, flying from Lima to Cusco or from Rio to Buenos Aires can sometimes cost £50 – £100 if booked in advance, which can be a time-saver compared to a very long bus journey. Lastly, within cities, rideshare apps (or official taxis) are affordable for short distances (often £2 – £5 for crosstown trips), but for safety, stick to licensed services and avoid unmarked cabs. 
4. Activities: South America is packed with free or low-cost activities for savvy travellers. Museums and cultural sites often charge between £2 and £10 for entry;  for example, the Gold Museum in Bogotá or many museums in La Paz are just a few pounds, and often there are free admission days once a week. Major tourist attractions or national parks can be more expensive: a ticket to Machu Picchu in Peru is roughly £40 – £50 (plus transportation to get there), and a guided 3-day tour of the Uyuni Salt Flats in Bolivia might be about £150 (which usually includes meals and basic lodging, effectively ~£50/day). Adventure activities like river rafting, zip-lining, or jungle tours typically range from £20 to £80, depending on the length and complexity. Keep in mind that many of the best experiences, such as wandering historic city centres, hiking to viewpoints, enjoying free walking tours, or relaxing on the beach, won’t cost you a penny. Balancing a few big-ticket adventures (like a Galápagos trip or Patagonia trek) with plenty of free activities is a great way to manage your budget. 
5. Shopping & Necessities: Shopping isn’t usually a huge part of a backpacker’s budget, but you should plan for basics and the occasional souvenir. Everyday necessities like bottled water (where needed), toiletries, sunscreen, or insect repellent are relatively cheap, maybe £1 – £5 each, but these small costs add up over a long trip. It’s often more cost-effective to buy items like sunscreen at home, whereas things like shampoo or soap you can get locally for similar or less cost than back home. Laundry services in hostels or laundromats typically charge only a couple of pounds per kilo of clothing. When it comes to souvenirs, local markets offer handmade goods at reasonable prices, for instance, a woven alpaca wool scarf in Peru or Bolivia might be £5 – £10, and a bottle of Argentine Malbec wine could be around £7 – £10. Haggling is common in markets (except where prices are clearly marked), so don’t be afraid to politely negotiate on crafts. All in all, setting aside £5 – £10 per week for miscellaneous purchases should suffice for most budget travellers, and £30 – £50 if you plan to bring home a few special souvenirs. 
6. Travel Insurance: Backpacking through South America is the adventure of a lifetime – but it also comes with unpredictability. Travel insurance provides a crucial safety net, protecting you from unforeseen mishaps like medical emergencies, theft, trip cancellations, or natural disasters. It ensures you have access to quality healthcare if you fall ill after that jungle hike, financial support if your belongings get stolen on an overnight bus, and the ability to reschedule or cut your trip short without a total financial loss if an emergency back home arises. By investing in a good Backpackers' Travel Insurance policy, you can explore South America with peace of mind, knowing you’re covered if things don't go as planned. (We’ll discuss specific features of Gigasure’s Backpackers Insurance later on, like our Gigashield travel delay cover and Global Search and Rescue, which are especially relevant to adventurous travellers.) 

Backpacking Costs by Country 

South America is a vast continent, and costs can vary significantly from country to country. Understanding the cost of backpacking in each destination will help you plan effectively and allocate your budget where it matters most. Below, we break down typical daily costs and expense highlights for some of the most visited South American countries on the backpacker trail. 

1. Peru (Cusco & Lima) 

• Average daily budget: £30 – £60
• Attractions: Peru offers a mix of free experiences and world-famous sites that come with a price tag. Wandering the colourful streets and markets of Cusco or Lima’s historic centre is free, and many museums in Lima (like the Museum of Art) have days with free or low-cost entry. However, iconic attractions such as Machu Picchu are more expensive – expect to pay around £45 for the entry ticket alone (and remember you’ll need to budget for the train or trek to get there). To save money, consider alternative (cheaper) treks like the Salkantay or Lares trek, or visit some of Peru’s many free archaeological sites and beautiful colonial churches scattered throughout Cusco’s Sacred Valley. 
• Food: Eating in Peru can be very budget-friendly if you stick to local cuisine. Try a menu del día lunch in a small family-run restaurant for about 10–15 Peruvian soles (roughly £2–£3), which usually includes a soup, a main dish, and a drink. Street food and market food stalls are plentiful: you can grab anticuchos (grilled meat skewers) or empanadas for under £1. Don’t miss trying ceviche (fresh marinated fish) – in local eateries, a plate might cost around £4–£6 and is often large enough to share. If you cook for yourself using local markets, you’ll find that fresh vegetables, fruits, and grains (like quinoa) are inexpensive. Treating yourself to a nicer dinner in touristy areas of Lima or Cusco (perhaps Peru’s famous gourmet cuisine) will cost about £10–£15 per meal at a mid-range restaurant, but these splurges can be balanced with ultra-cheap meals on other days. 
• Transport: Getting around Peru is fairly cheap. Within cities, public buses and “combi” vans zigzag everywhere for the equivalent of a few pence (for example, a bus ride in Lima might be 1 sol or so, about £0.20). Taxis and rideshares in cities are affordable too; a 20-minute ride in Lima might be £3–£5 but always use licensed taxis or apps for safety. For intercity travel, buses are king: a comfortable overnight bus from Lima to Cusco (21+ hours) can cost around £30 – £40 (with semi-reclining seats and even meals provided on some bus lines). Shorter routes, like Cusco to Arequipa, might be £15–£20. Peru’s long-distance buses range from basic coaches to luxurious “cama” buses with fully reclining seats; the latter cost a bit more but can be worth it for very long trips. If you’re short on time, domestic flights are available, for example, Lima to Cusco or Juliaca (for Lake Titicaca), which is usually £50–£80 if booked in advance (prices can spike during peak tourist season in July/August). 
• Accommodation: Hostel prices in Peru are moderate. In Cusco, one of the most popular backpacker bases, a dorm bed typically ranges from £6 to £12 per night, depending on the hostel’s facilities and proximity to the main Plaza de Armas. In Lima, prices are similar – districts like Miraflores or Barranco (popular with travellers) have dorms around £8–£15/night, while cheaper guesthouses can be found for under £10 in less central areas. Many hostels in Peru include free breakfast (usually bread, jam, fruit, and coffee/tea), which can stretch your budget further. If you’re travelling in high season (June–August in the Andes) or around big events (like Inti Raymi in late June in Cusco), it’s wise to book ahead, as the best budget places fill up quickly. In more off-the-beaten-path towns, you can often find simple accommodation on arrival for very low prices (sometimes £5–£8 for a basic room), though amenities may be extremely simple in those cases. 

2. Colombia (Bogotá & Cartagena) 

• Average daily budget: £25 – £50
• Attractions: Colombia is one of the most wallet-friendly countries in South America for activities. Many of the best experiences – strolling the colonial walled city of Cartagena, hiking to waterfalls in Minca, or admiring street art in Bogotá’s Candelaria district – are free. Museums and attractions are generally inexpensive: the renowned Gold Museum in Bogotá costs only about £1–£2 for entry (and is free on Sundays), and you can visit Monserrate hill for panoramic views of Bogotá via a funicular for around £4. If you’re heading to the Lost City (Ciudad Perdida) trek, that is a pricier adventure (multi-day guided treks cost ~£250+), but most backpackers will splurge on one big trek like that or Cocora Valley and balance it with free activities elsewhere. Overall, you’ll find plenty of free concerts, public parks, and free walking tours (don’t forget to tip your guide) in Colombian cities, which keep you entertained at little cost. 
• Food: Colombia’s food scene has lots of hearty, cheap options. For breakfast, grab an arepa (corn cake) with cheese or egg for well under £1 from a street vendor. Lunch is the biggest meal of the day – look out for “almuerzo ejecutivo” or “corrientazo” (set lunch menus) in local eateries; for COP 12,000–20,000 (about £2–£4) you’ll get soup, a protein with rice and salad, juice, and sometimes dessert. It’s filling and budget-friendly. Must-try cheap eats include empanadas (often just £0.50 each), buñuelos (fried dough balls), and pandebono (cheesy bread) – all just a few coins. In coastal areas like Cartagena, you can enjoy fresh fruit juices and coconut rice with fish from small stalls for a couple of pounds. If you fancy a treat, dining at a nicer restaurant in cities like Bogotá or Medellín will still be reasonable: perhaps £8–£12 for a very nice meal (e.g. a trendy spot in Medellín’s El Poblado district). And of course, Colombia’s coffee is excellent – you can get a tinto (small black coffee) from street vendors for pennies, which is perfect for your budget caffeine fix! 
• Transport: Travelling around Colombia is inexpensive and efficient. City transportation in Bogotá or Medellín (which has a modern metro) costs under £1 per ride. For longer distances, Colombia has a well-developed bus network: a bus from Bogotá to Medellín (about 10 hours) might cost around £15, and a short hop like Medellín to Guatapé just £3–£4. Buses come in various classes – the premium ones have aircon and comfy seats but even the basic ones are fine for short journeys. An increasingly popular option for backpackers short on time is domestic flights: thanks to budget airlines like Viva (and others) in Colombia, you can sometimes fly between major cities for as low as £30 – £50 if you catch a sale. For example, a one-way flight from Cartagena to Medellín can be found in that price range and takes just an hour (versus 13+ hours by bus). Within cities, use of official taxis or ride-hailing apps (like Uber or DiDi) is common and cheap – a ride across town in Bogotá might be around £3. One tip: avoid unofficial taxis, especially at airports or bus terminals; instead, opt for regulated taxi stands or apps for safety. 
• Accommodation: Colombia’s hostel scene is well-developed and very affordable. In Bogotá, you can find hostel dorms in the Candelaria (historic center) for about £6–£10 per night. In Medellín, popular hostels in the El Poblado area range from £8 to £12 for dorm beds (with many offering perks like free salsa lessons or a welcome drink). Cartagena is slightly pricier due to being a tourist hotspot – dorm beds in the old city or Getsemaní might be around £10–£15, but you’re paying for location and air-conditioning (which is a lifesaver in the coastal heat!). Throughout Colombia, many hostels include free breakfast and have communal kitchens, helping you save on food. Homestays and family-run guesthouses (often called hospedajes or casas de familia) are also a great value, especially in smaller towns – they can be as low as £10 for a private room. As with elsewhere, during peak periods (like Christmas/New Year on the coast, or Feria de las Flores in Medellín in August), rooms can book out, so it’s wise to reserve ahead for those times. Otherwise, Colombia is a place where you can often show up and find a bed on the spot without trouble. 

3. Argentina (Buenos Aires & Patagonia) 

• Average daily budget: £45 – £80
• Attractions: Argentina is a country of extremes; not just in landscapes, but in costs as well. In cities like Buenos Aires, many attractions are surprisingly cheap or free. For example, you can tour the beautiful Recoleta Cemetery (where Eva Perón is buried) for free, or visit the Museo Nacional de Bellas Artes in BA, which has free admission. A tango show in a casual venue or a football match in the local stands might cost around £10–£20, which is a cultural experience worth having. Now, if you venture down to Patagonia or other far-flung regions, costs rise due to logistics – a guided day trek on a glacier or a boat trip to see the Perito Moreno Glacier can be £50–£100. Entrance to national parks like Los Glaciares or Torres del Paine (Chile, but often part of Argentinian Patagonia itineraries) is roughly £20–£25. The good news is that a lot of Argentina’s charm is in simply experiencing the atmosphere: wandering through Buenos Aires’ colourful La Boca neighbourhood or hiking self-guided trails in Bariloche’s lake district can fill your days with minimal expense. Also, keep an eye out for the “Blue Dollar” exchange rate. Foreign cash (USD/EUR) can fetch a much better exchange rate in Argentina than the official bank rate, effectively giving travellers more pesos to spend (if done safely at reputable exchange houses). This means your budget might stretch further in reality than it looks on paper. 
• Food: Argentina is famed for its food and wine, and backpackers can indulge without breaking the bank. If you cook for yourself, groceries (especially fresh produce, pasta, bread, and of course the abundant beef) are inexpensive. But eating out can be reasonable too. A typical porteño (Buenos Aires local) breakfast of medialunas (croissants) and coffee might be just £2–£3 at a café. For lunch, look for empanada shops, at £1 or less per empanada you can have a filling meal for a few pounds. Many locals eat a big meal late in the day; you can find pizza or pasta in a neighbourhood restaurant for around £5–£8. But let’s talk about the famous Argentine steak: at a local parrilla (grill), you can get a substantial steak with sides for as little as £10–£15, which, compared to steak prices in the UK, is a steal for the quality. Splitting a bottle of good Malbec wine might add another £5, an incredible value for wine lovers. In Patagonia or tourist-heavy spots, food costs can rise (remote location logistics), so you might see prices 20–30% higher than in Buenos Aires. Overall, budgeting about £10–£15 per day for food can go a long way if you mix cheap eats with the occasional splurge on Argentina’s world-class cuisine. 
• Transport: Argentina is huge, and transportation will be a noticeable part of your budget if covering long distances. Long-distance buses are comfortable, expect fully reclining seats called cama on overnight routes – but not super cheap due to distances: for instance, a bus from Buenos Aires to Mendoza (14+ hours) is around £30–£40, while BA to Bariloche (a whopping 24 hours) can be £50+. Many backpackers break up journeys into smaller legs or opt for the occasional flight. Argentina’s domestic flights, thanks to carriers like Aerolíneas and Jetsmart, can be priced reasonably: a 3-hour flight from Buenos Aires to El Calafate (gateway to glaciers) might be £60–£100 if booked in advance – often worth it to save two full days on a bus. Within cities, transport is very cheap: Buenos Aires has a reliable Subte (subway) and bus network – a single fare is just a few pesos (pennies in GBP terms). Other cities have local buses that cost similarly little. In Buenos Aires, you’ll need a rechargeable SUBE card to use public transit, which costs a tiny amount and saves you a lot on taxis. Speaking of taxis, in cities they are affordable, an average ride might be £3–£6, but do ensure the meter is used or agree on a price beforehand (and be mindful of potential scams; using ride apps like Cabify can add a layer of security). If you’re heading into neighbouring countries from Argentina, international buses (e.g. Buenos Aires to Santiago, Chile) are also an option and can cost around £40; always check if any reciprocity fees or border costs apply for your nationality. 
• Accommodation: Due to economic fluctuations in Argentina, accommodation prices for foreigners are often a good deal. In Buenos Aires, a top-rated hostel in a central area like Palermo or San Telmo will charge around £8–£12 for a dorm bed. Elsewhere in the country, it can be even cheaper – for example, in Córdoba or Salta, you might find dorms for £6–£8. In Patagonia, prices climb: a dorm bed in El Calafate or Ushuaia could be £12–£18 a night because of seasonal demand. One interesting option in Argentina (and Uruguay) is that some hostels let you pay in US dollars or euros cash and might give a favourable rate (because of the aforementioned blue dollar), effectively giving you a discount – always ask if they have a better cash rate. If you prefer a private room, Argentina can be very reasonable: guesthouses or budget hotels might offer private doubles for £20–£30 per night (often with private bathroom and breakfast). As always, in high season (roughly December-February for Patagonia and ski season, and January for the beaches), you should book ahead, not only can places fill up, but prices can surge or only luxury options remain. During shoulder seasons, you have more flexibility to walk in without reservations and perhaps negotiate a bit for a stay of several nights. 

4. Brazil (Rio de Janeiro & São Paulo) 

• Average daily budget: £40 – £80
• Attractions: Brazil can be a bit more expensive than some of its neighbours, but many of its joys are free. For example, enjoying the famous Copacabana and Ipanema beaches in Rio de Janeiro costs nothing, just lie out your canga (beach sarong) and soak up the sun (maybe budget a few pounds for a cold coconut water or a caipirinha from a beach vendor!). Exploring Rio’s vibrant neighbourhoods, like Santa Teresa or the street art of Lapa, is free as well. That said, there are some must-do paid attractions: a ticket to Christ the Redeemer (Cristo Redentor), including the official shuttle or train is around R$100 (approximately £15–£18), and the cable car up Sugarloaf Mountain (Pão de Açúcar) is similar in price – both are iconic experiences with unforgettable views. In the Amazon region or Pantanal, guided tours (piranha fishing, wildlife spotting, etc.) can add to your budget, typically £30–£60 for day tours. If you’re in Salvador or other historic cities, many churches and cultural sites are just a few pounds to enter, if not free. Iguazu Falls (the Brazilian side) costs about £15 entry, a notable expense but absolutely worth it to witness one of the world’s greatest waterfalls. One tip: Brazil offers discounted or free entry to many sites for students and sometimes even for young people under a certain age, so carry an ISIC card or similar if you have one. 
• Food: Brazilian food is delicious and, if you eat like a local, very affordable. A typical Brazilian setup is the “por kilo” buffet restaurants, where you pay by the weight of your plate. These can be great value if you’re hungry, often coming out to £5–£7 for a loaded plate of meat, rice, beans, salads, and more. Street food is also a highlight: try a coxinha (fried dough with chicken filling) or pastel (crispy pastry with various fillings) for well under £1 each. In the mornings, grab an acai bowl or pão de queijo (cheesy bread balls), both favourites that cost about £1–£2 from casual eateries. A hearty local lunch might be the classic prato feito (plate of the day), which usually includes meat, rice, beans, fries and salad for around R$20–R$30 (~£3–£5). If you’re a fan of grilling, some hostels have barbecues where you can cook your own churrasco – buying fresh meat from a market is inexpensive, especially if a few friends chip in. For dinner, if you go to a sit-down restaurant or touristy area (say a nice churrascaria/BBQ in São Paulo or seafood in Florianópolis), you might spend £10–£15 per person, still reasonable for a treat. And don’t forget drinks: a fresh coconut in Rio is about R$5 (£0.80), a local beer (chopp) maybe £1–£2, and the national cocktail caipirinha can be found for £2–£4 at bars (though in upscale clubs it’ll be more). All in all, you can eat very well in Brazil on a modest budget by sticking to local spots and street vendors. 
• Transport: Brazil’s sheer size means you’ll likely take some long rides or a flight or two. On the backpacker trail, long-distance buses are comfortable and safe, but not always cheap for very long hauls, for example, a bus from Rio de Janeiro to Foz do Iguaçu (24+ hours) might cost around R$300–R$400 (about £50–£65). Given such distances, many travellers opt for internal flights; Brazil has several airlines (Gol, LATAM, Azul) and if you book in advance or watch for sales, a 2-3 hour flight can be £50–£100. For instance, flying from Rio to Iguazu or São Paulo to Salvador might fall in this range and save a ton of time. Within cities, Brazil has extensive public transit: Rio’s metro is clean and around R$5 (£0.80) per ride, and city buses are even less (but can be crowded and hot). São Paulo also has a great metro system to beat the traffic. In smaller cities or beach towns, local buses or minibuses rarely cost more than £1–£2 for intra-city rides. Taxis and ride-hailing (Uber is widely used in Brazil) are relatively cheap compared to the UK, just be cautious late at night or in traffic so you’re not overpaying due to jams. One fun and cheap transport in Rio is the public vans and mini-buses that zip around they often cost just a few reais and can be quicker than buses (though a bit of a wild ride!). A note for travellers: Brazil requires onibus (bus) tickets to be bought with your passport info, so keep your ID handy when purchasing, and try to buy long-distance bus tickets a day or two in advance in high season as popular routes can sell out. 
• Accommodation: Hostels in Brazil are generally affordable, though big cities and tourist areas will be a bit pricier than in the Andean countries. In Rio de Janeiro, hostel dorm beds in areas like Copacabana, Ipanema or Lapa usually range £10 – £15 per night (higher during Carnival or New Year’s). In São Paulo, you might find beds a tad cheaper, around £8 – £12, since the city has a huge number of hostels and less tourist crush than Rio. On Brazil’s beautiful beaches (like Florianópolis or Jericoacoara), there are many hostels and pousadas (guesthouses); off-season, you can snag dorms for under £10, but in summer (December-February), prices can double. If you plan to experience Carnival in Rio or Salvador, brace yourself: accommodation costs skyrocket for that week – many hostels require fixed packages (e.g. 5-night minimum) and could charge £30+ per night for a dorm. It’s essential to book well in advance for Carnival or any major festival in Brazil, as places fill up across all budgets. Otherwise, during normal times, Brazil offers some cool alternative stays: you might consider a favela guesthouse in Rio for an authentic experience (there are reputable ones in Vidigal or Babilônia that are safe for travellers, often around £20 for a private room with an incredible view). Also, Couchsurfing is fairly popular in Brazil’s big cities – a great way to save money and meet locals if you’re comfortable with it. Overall, plan for average accommodation costs slightly higher than in cheaper countries, but still reasonable, and the warmth of Brazilian hospitality often makes every hostel feel like home. 

5. Chile (Santiago & Atacama) 

• Average daily budget: £50 – £90
• Attractions: Chile is one of the more expensive South American countries, but it delivers a lot of unique experiences. Many of Chile’s highlights are natural wonders. In the Atacama Desert (San Pedro de Atacama), you can stroll through otherworldly landscapes for free, but popular excursions (like the Tatio geysers, salt flats, or stargazing tours) typically cost £30–£50 each. Entrance to Chilean national parks often comes with a fee; for example, Torres del Paine in Patagonia charges roughly CLP 35,000 (about £35) for a multi-day entry pass. However, within those parks, you can often hike without a guide (free after entry) and camp cheaply, which many budget travellers do. In the capital, Santiago, you’ll find a wealth of free activities: the city’s museums (like the Museo de la Memoria) are either free or just a couple of pounds, and it costs nothing to take the funicular up Cerro San Cristóbal for panoramic city views if you hike (or around £2 if you ride). Many vineyards around Santiago offer paid tours and tastings (~£10–£20), but you can sometimes visit the grounds for free or for just a small tasting fee. One great thing is the prevalence of free walking tours in Santiago, Valparaíso, and other cities; these tip-based tours provide excellent orientation without a fixed cost. In short, while Chile has some high-ticket must-sees, you can balance your budget by enjoying its free urban parks, historic plazas, and self-guided adventures. 
• Food: Eating in Chile can range from very cheap (if you stick to local diners and markets) to Western-European prices (if you go to trendy restaurants or eat a lot of imported foods). For budget travellers, the ubiquitous “menu del día” exists here too, often called colación, which might run CLP 5,000–7,000 (around £5–£7) for a simple lunch with salad, main, and drink. Street food to try includes completos (Chilean hot dogs loaded with mayo, tomatoes, and avocado) which cost about £1–£2 and make a filling snack or quick meal, and sopaipillas (fried pumpkin bread) sold on the street often for mere pennies, especially in winter, delicious with pebre (salsa) or mustard. If you’re in a coastal area, sample the fresh seafood at local markets: a bowl of ceviche or paila marina (seafood stew) might be as low as £3–£4 if you’re standing elbow-to-elbow with locals at a market stall. For groceries, supermarket prices in Chile are higher than elsewhere in South America (more on par with what you’d see in Europe for many items), so cooking every meal might not save as much as it would in Bolivia or Peru – but buying produce at the ferias (open-air markets) can significantly cut costs and also give you great fresh ingredients. In the Atacama or Patagonia, restaurants tend to be pricey due to tourism and transport costs, so consider making use of hostel kitchens there. One insider tip: Chile has inexpensive, good wine. You can pick up a decent bottle of Chilean wine in a store for £3–£5, which pairs nicely with a picnic dinner of bread, cheese, and avocado (palta) – a classic backpacker feast in Chile that won’t break the bank! 
• Transport: Chile is a long, narrow country, meaning long-distance travel can be time-consuming. Buses are modern and comfortable; for example, an overnight bus from Santiago to San Pedro de Atacama (approx. 22 hours) might cost around CLP 40,000–60,000 (about £40–£60) depending on seat class (semi-cama vs cama). On the shorter side, a 3-hour bus from Santiago to Valparaíso is only about £5, and buses to popular towns like Pucón or La Serena might be in the £15–£25 range. Booking in advance can sometimes get you better prices, especially with premium companies like TurBus or Pullman. In Patagonia, buses between towns are fewer and can be more expensive (and need early booking) – e.g., Puerto Natales to El Calafate in Argentina, a common route, is about £25 one-way. Domestic flights in Chile are worth considering for big jumps: flying from Santiago to Calama (for Atacama) or Punta Arenas (for Patagonia) can cost £50–£100 one-way if you book a few months out – and it saves one or two full days of travel. Low-cost airlines like Sky and JetSmart often have promotions. Within cities, public transport is efficient: Santiago’s Metro is clean, safe, and costs roughly CLP 800 (under £1) per ride; buses in town are similar, though you’ll need a rechargeable BIP! card in Santiago to use both. Other cities like Valparaíso have buses and historic funiculars (rides cost maybe 30p up the steep hills). Chile’s taxis are metered and relatively pricey – a short ride in Santiago could be £4–£5, so many backpackers stick to the metro or rideshare apps (Uber is present, though not officially legal – use with caution). One more note: the border crossings between Chile and neighbours (Peru, Bolivia, Argentina) often involve multiple legs; for example, the popular San Pedro de Atacama to Uyuni (Bolivia) route is a 3-day 4x4 tour rather than a simple bus, and costs about £100 – but it doubles as an unforgettable adventure tour across the Bolivian altiplano. 
• Accommodation: Chile’s accommodation will likely be the most expensive of the countries covered here, but still manageable with planning. In Santiago, expect to pay around £12–£18 for a good hostel dorm in popular districts like Bellavista or Providencia. Basic options or larger dorms might be closer to £10. In smaller cities or less touristy areas, you can find beds for £8–£10. For instance, in Valparaíso, hostels average about £10–£14 per dorm bed amid the cerros (hills) with those famous colourful houses. In the Atacama Desert (San Pedro), accommodation is limited and in high demand; dorm beds might be around £15–£20 (book ahead, as San Pedro gets very busy in the high season and during holidays). Patagonia is similar or even higher: during the summer trekking season, a dorm bed in Puerto Natales or Punta Arenas can also hit £18–£25 per night (with limited availability). If you plan to hike Torres del Paine, factor in camping fees or refugio costs; these can be quite high (camping might be ~£8–£10 per person per night, and a bunk in a refugio dorm much more, often £50+ including meals). It’s one reason many trekkers carry their own tent/gear to save money. On the plus side, most Chilean hostels include breakfast (a simple one) and have excellent facilities, since they know travellers are paying a bit more. As always, try to travel in shoulder season for better deals for Chile, which could be October/November or March/April, when the weather is still decent but prices and crowds are slightly down. And if you’re really pinching pennies, consider volunteering opportunities (like Workaway or hostel work exchanges), especially in pricier locales. Working a few hours a day at a hostel in exchange for a free bed and meals is a tactic some backpackers use to extend their stay in Chile without blowing the budget. 

6. Bolivia (La Paz & Uyuni) 

• Average daily budget: £20 – £40
• Attractions: Bolivia is one of South America’s most budget-friendly countries, and many activities are extremely affordable here. In bustling La Paz, you can spend a day just exploring the street markets (like the famous Witches’ Market) for free, or take in the view from one of the many teleférico cable cars that crisscross the sky – a ride costs only about 3 Bolivianos (under £0.50) and doubles as a spectacular aerial tour of the city. Museum entries in La Paz and Sucre are typically £1 or less, which means you can soak up history and culture on the cheap. A popular adventure is biking the Death Road, a full-day guided mountain biking trip including transport and equipment is around £50–£60, which is a big spend in Bolivia but a highlight for many (and that often includes a meal and even a t-shirt). Visiting Uyuni’s Salt Flats is a must-do; the standard is a 3-day 2-night 4x4 tour through surreal landscapes (including food and basic lodging) for about $150–$180 (roughly £120–£140). While that’s a chunk of money, break it down and you’re looking at £50 per day for an all-inclusive adventure still within a mid-budget range. There are also shorter 1-day trips to the salt flats for much less (£20), but you’ll miss the multi-day journey through the colored lagoons and desert. In general, many of Bolivia’s gems (e.g. Lake Titicaca, high-altitude treks, colonial towns) can be enjoyed with minimal entry fees or by hiring an inexpensive local guide on the spot. 
• Food: You will be hard-pressed to go hungry in Bolivia not only are portions hearty, but prices are some of the lowest on the continent. Street food is king: a salteña (a tasty baked empanada with juicy filling) in the morning costs about 5 BOB (£0.50) and makes a perfect breakfast or snack. Throughout the day, you’ll find women selling api con buñuelos (a hot corn-based drink with fried dough) for similarly low prices, especially in cooler highland areas. Lunch is where Bolivia truly shines: the almuerzo set menus in local eateries often cost 15–20 BOB (around £1.50 – £2) and will include a soup, a main (commonly meat, rice, potatoes, and salad) and sometimes a dessert or drink. It’s unbelievably good value and usually delicious, home-cooked food. Market halls are a great place to eat cheaply and authentically; for example, in Cochabamba’s market, you can get a huge plate of silpancho (thin breaded meat with egg, rice, potatoes, salad) for just a couple of pounds. If you crave international food or something like a proper espresso coffee, tourist-oriented cafés in La Paz or Sucre might charge more “normal” prices (say £4 for a sandwich or £2 for a cappuccino), but those are occasional treats. Self-catering isn’t very common for travellers because eating out is so cheap, but if you do buy groceries, local staples (produce, bread, eggs) are extremely inexpensive. One thing to note: at very high altitude, your appetite might decrease a bit, and you’ll definitely need to stay hydrated. Bottled water is cheap (maybe £0.30 for a litre), and in many places you can safely drink boiled or purified water (some hostels provide water refill stations to reduce plastic waste). Overall, with £5 a day in Bolivia, you can eat like royalty if you stick to local spots, it’s that affordable. 
• Transport: Getting around Bolivia is both an adventure and a bargain. City transport often consists of micros (minibuses) and trufis (shared taxis), with fares usually 2–3 BOB (well under £1). They’re an experience; expect colourful decor, crowded seating, and a cobrador shouting destinations – but they work! For intercity routes, buses are very cheap: for example, the 8-hour bus from La Paz to Uyuni might be around £8–£10, and a 3-hour ride from La Paz to Copacabana (Lake Titicaca) just £3 or £4. The trade-off is that roads can be rough, and buses are not as fancy as in neighbouring countries. There are some “flota” (larger bus) companies with semi-cama seats on main routes, but also many basic coaches without heating, so if you do an overnight bus in the Altiplano, dress warmly (and consider paying a bit more for a better bus if available). Another quirk: some routes in Bolivia involve interesting connections, for instance, crossing Lake Titicaca, everyone gets off the bus, takes a small boat (fee ~£0.50) while the bus goes on a barge, then you rejoin it’s memorable if not the most efficient! There are a few domestic flights in Bolivia connecting major spots (La Paz, Sucre, Santa Cruz, Rurrenabaque for the Amazon) these can be worth it if you’re short on time, with one-way fares often around £50 or so (e.g., La Paz to Rurrenabaque saves a grueling 20-hour bus on rough roads through the mountains). Within cities like La Paz, a highlight is the Mi Teleférico cable car system. Not only is it scenic, but at a cost of mere pennies, it’s a viable way to commute between districts perched at different altitudes. Lastly, taxis within towns are cheap (usually just a couple of pounds for cross-town), but they are unregulated; always agree on the price before starting the ride. It’s normal to share a taxi with other passengers going in the same direction, which further reduces the cost. 
• Accommodation: Bolivia offers some of the cheapest accommodation in South America for travellers. In many smaller towns, you can find a simple room in a hospedaje for under £10 (though it might be very basic, perhaps no hot water). In the main tourist hubs, hostels are incredibly affordable: in La Paz, a bed in a backpacker hostel dorm can be found for £5–£8 per night. Even popular, well-reviewed hostels (with features like wifi, breakfast, maybe even a rooftop bar) often charge under £10 for a dorm bed. The same goes for Sucre and Potosí, where the cost of living is low. In Uyuni town, accommodation is a bit more limited (most people stay one night before/after salt flat tours); dorms might be around £8–£12, and some salt flat tours include basic lodging in the first night’s price (often a simple shared dorm in a remote “salt hotel”). If you’re travelling as a couple or with a friend, private rooms in Bolivia can be a great deal – many hostels or budget hotels offer twin or double rooms for £15–£20 total, which is fantastic value. While safety and cleanliness standards vary, generally the backpacker places in Bolivia are friendly and adequate; just don’t expect luxury, and you’ll be pleasantly surprised at how far your money goes. One thing to note: in the colder highland cities, not all places have heating, so those on a budget might find themselves in chilly rooms. Pack a good sleeping bag or thermal pyjamas for comfort. As always, during local festivals or holidays (for example, Carnaval time in Oruro, or around Independence Day in Sucre), accommodations can fill up, so plan accordingly. But for most of the year, you can be quite spontaneous in Bolivia without fear of not finding a bed – and your wallet will thank you! 

Money-Saving Tips 

Budgeting for your backpacking trip doesn’t mean sacrificing amazing experiences. Here are some practical money-saving tips to help you make the most of your South American adventure: 

1. Stay in Hostels or Use Couchsurfing – Hostels are typically the most budget-friendly option for accommodation, and they also offer the chance to meet fellow travellers. Dorm beds are inexpensive across South America, and many hostels include free breakfast or communal dinners. Alternatively, platforms like Couchsurfing allow you to stay with locals for free, providing a unique cultural exchange while saving on lodging costs. (Always read reviews and stay safe when couchsurfing by choosing verified hosts.) 
2. Cook Your Meals (and Shop Local) – Eating out is relatively cheap in many South American countries, but cooking some of your own meals can still result in significant savings especially in higher-cost areas like Chile or Argentina. Visit local markets for fresh produce, bread, and snacks at local prices. Many hostels have communal kitchens where you can whip up a meal. Even something as simple as making your own sandwiches for lunch or prepping pasta with veggies for dinner will cut costs. Plus, shopping in markets is a fun way to mingle with locals and learn about local ingredients (you might discover new fruits or spices!).  
3. Use Public Transportation – Opting for buses, metros, and shared taxis instead of private taxis or flights can dramatically lower your transportation expenses. South America’s public transit is generally very affordable: city buses and metro systems cost a fraction of a taxi ride. For longer distances, night buses are a budget traveller’s best friend – they are cheaper than flights and double as accommodation for the night (just remember to carry earplugs and a travel pillow for comfort). In some cases, consider breaking up long journeys into shorter rides with stops in lesser-known towns. Not only can this be cheaper than a direct route, but it also lets you discover offbeat places. And don’t underestimate walking, exploring on foot is free and often the best way to soak in the atmosphere of a place (just ensure the area is safe for walking, especially after dark). 
4. Travel Off-Peak – Timing your trip can affect your budget. Travelling during the shoulder or off-peak seasons can lead to lower prices for accommodation and tours, and you’ll also enjoy fewer crowds. For example, visiting Peru just before the high season (say in April/May or late September) might get you better hostel rates than in June-July. In Patagonia, March can be a sweet spot with decent weather but cheaper lodge prices than the peak of January. Additionally, avoid major national holidays when locals are also travelling and prices shoot up. By being flexible with your dates, you might snag promotional airfares or empty hostel dorms. And if your schedule is open-ended, you can linger in places during festivals or events that are free and culturally enriching, then move on when prices drop. 
5. Seek Out Free and Cheap Activities – Some of the most memorable experiences won’t cost a thing. Many South American cities offer free walking tours led by local guides (you just tip what you can at the end); these are fantastic for getting oriented and learning history. Likewise, check for free museum days; for instance, many museums in Buenos Aires and Bogotá have one day a week with no entry fee. Nature is a huge draw in South America and often doesn’t cost anything: you can hike to viewpoints, relax on public beaches, or wander through local parks and markets without opening your wallet. Also, look out for community events like free concerts, dance performances, or festivals. South America loves its fiestas, and as a traveller, you’re welcome to join in. By incorporating plenty of free activities into your itinerary, you can save your budget for the truly special paid experiences you don’t want to miss (like that Machu Picchu entry or Amazon tour). 

Why Travel Insurance is Essential for Backpackers 

While backpacking through South America is exhilarating and rewarding, it’s important to acknowledge the potential risks and unexpected events that can occur on the road. Travel insurance acts as an invaluable safety net for backpackers, ensuring that a surprise mishap doesn’t turn into a trip-ending crisis. Gigasure’s Backpackers Insurance product is designed with these very challenges in mind, offering comprehensive cover and special features tailored to long-term travellers. Here are some key reasons why having travel insurance is essential: 

• Medical Emergencies: Accidents or illnesses can happen anywhere, whether it’s altitude sickness in the Andes or a stomach bug in a remote village. Hospital visits or medical evacuations can be exorbitantly expensive if you’re not insured. With travel insurance, you have access to quality medical treatment without the burden of hefty bills, and multilingual assistance to help navigate foreign healthcare systems. Gigasure policies cover emergency medical expenses and can even advance payments to hospitals if needed, so you’re not left vulnerable in a critical moment. 
• Lost, Stolen or Delayed Belongings: Long trips often involve multiple bus rides, flights, and border crossings – and unfortunately, the chance of baggage going missing or valuables getting stolen is real. If your checked backpack doesn’t show up on the carousel or if your daypack gets snatched on a crowded city bus, insurance can assist in replacing essential items quickly. Gigasure’s Backpackers Insurance includes cover for baggage and personal belongings, so you can buy clothes and necessities if your gear is delayed, or get compensation to replace a stolen phone or camera (up to policy limits). It won’t erase the headache of losing stuff, but it will soften the financial blow and help you continue your trip. 
• Trip Delays & Travel Disruption: Missed connections, sudden strikes, or extreme weather can throw a wrench in even the best-laid travel plans. These kinds of delays not only cost you time but can also incur extra expenses (like unexpected hotel nights or rebooked transport). Gigasure’s travel disruption benefits our GigaShield feature cover those unforeseen delays to keep your journey as stress-free as possible. For example, if your flight from Bogotá is severely delayed or your baggage is held up en route, Gigasure’s GigaShield can provide a real-time cash payout via our app to cover your immediate needs (meals, accommodation, essentials), without the usual paperwork and waiting. It’s like having a safety cushion for those annoying travel hiccups, so a delay doesn’t ruin your adventure or drain your budget. 
• Adventure Sports Coverage: South America beckons backpackers with adrenaline-pumping activities, think paragliding over Medellín, hiking to 5,000m passes in Peru, surfing in Ecuador, or zip-lining through the Amazon canopy. These adventures are often highlights of a trip, but they can carry higher risks and may not be covered by a standard insurance policy. With Gigasure’s Backpackers Insurance, you can opt for Adventure Sports Cover, which ensures that activities like trekking at high altitude, scuba diving, bungee jumping, or canyoning are covered. This means if you sprain an ankle on a volcano trek or have a spill while mountain biking Bolivia’s Death Road, your medical care (and even evacuation if needed) is taken care of. Always check which activities are included or require an add-on, and make sure you’re covered for the specific adventures on your bucket list.  
• 24/7 Emergency Assistance: When you’re far from home and something goes wrong, having expert support a phone call away is priceless. Gigasure policies include 24/7 global emergency assistance, which means you can get help at any hour, whether you’ve lost your passport and need guidance, require a referral to an English-speaking doctor, or need legal assistance after an incident.  
• Global Search and Rescue: For those heading off the beaten path, maybe trekking alone in Patagonia or venturing into the Bolivian jungle – it’s reassuring to know your insurance has your back even in the most extreme scenarios. Gigasure offers a Global Search and Rescue benefit in its Backpackers Insurance. This means if, heaven forbid, you go missing or get stranded in a remote area, the costs of search and rescue operations are covered. High-altitude and wilderness adventures come with inherent risks (flash weather changes, getting lost, etc.), but with this cover, you can relax and enjoy the adventure knowing that if something goes awry, your policy can help rally the necessary rescue efforts. It’s a feature we include because your safety is paramount – exploration should be thrilling, not reckless. 
• “Back to Base” Home Visits: Long-term backpackers sometimes worry about having to return home in the middle of a trip – whether it’s for a family wedding, a personal event, or a breather because of travel fatigue. With Gigasure’s unique Back to Base cover, you have the flexibility to return home up to three times during your journey without voiding your insurance policy. This means you can fly back to the UK, handle your personal matters (or just surprise your family for the holidays), and then resume your trip under the same insurance coverage. Your policy remains active for up to 13 months in total. It’s a fantastic benefit for those on a gap year or round-the-world trip, ensuring continuous protection even if your path detours home briefly. 

In summary, a travel insurance cover tailored for backpackers is as essential as your passport. It’s there to protect not just your finances, but also your well-being and peace of mind, allowing you to focus on making memories. Gigasure’s Backpackers Insurance combines all the above features, and more, into one flexible policy, so you can venture across South America with confidence that you’re covered against the unexpected. 

Plan Your South America Trip with Gigasure 

Now that you have a clearer understanding of the costs involved in backpacking across South America, it’s time to start planning your own epic journey. By budgeting wisely and securing the right travel insurance, you’ll set yourself up for a smooth and enjoyable experience. Gigasure is here to help you every step of the way. We offer tailored travel insurance options specifically designed for backpackers, so you can explore with confidence knowing you’re protected against a wide range of potential challenges. 

Our Backpackers Insurance product not only covers the basics like medical care and lost belongings, but also includes those adventure-ready features we talked about – from Gigashield travel delay benefits to Back to Base flexibility. We’ve built our cover with backpackers in mind, allowing you to customise your policy with add-ons for high-adrenaline activities or extra gadgets, for example. It’s all about giving you the freedom to roam far and wide, with a safety net in place. 

Before you set off, make sure to get a quote for Gigasure’s Backpackers Insurance on our website (it’s quick and obligation-free). You might be surprised how affordable comprehensive cover can be, especially compared to the potential costs of an uninsured incident abroad. And while you’re at it, consider downloading the Gigasure App – your handy travel companion. Through the app, you can manage your policy on the go, access 24/7 emergency help at the tap of a button, and even trigger instant GigaShield payouts if your flight’s delayed. We’ve made the claims process super easy too, because we know nobody wants to deal with heaps of paperwork while travelling. 

With Gigasure by your side, you can venture into the Amazon, scale Andean peaks, or navigate buzzing city markets with the assurance that you’re in safe hands. So go ahead and turn your South American backpacking dreams into reality! Pack your bags, plan that itinerary (don’t forget to budget for all the delicious street food), and embrace the excitement of the open road. And most importantly, travel safe and smart by protecting yourself with the right insurance cover. 

Gigasure has your back throughout your journey – from the moment you start planning until you return home with a head full of stories. We can’t wait to see you explore the world confidently and create memories that will last a lifetime. So, here’s to your grand South American adventure: stay curious, stay safe, and happy travels! 

Some of the Sources Used for Research: 

• Booking.com (for average accommodation costs and hotel/hostel price comparisons)
• Airbnb (for insights on budget private stays and local lodging options) 
• KAYAK (reference for typical flight prices and transport deals within South America) 
• Tripadvisor (for up-to-date traveller reviews on costs of tours, food, and attractions) 
• South America Backpacker – “How Much Does Backpacking in South America Cost? A Budget Guide” (country-by-country cost insights) 
• Statista – Data on “Cheapest backpacker destinations in Latin America 2024” (average daily budget statistics) 

Disclaimer: 

Please note that the costs mentioned for backpacking in South America are approximate and can vary significantly based on factors such as the time of year, specific locations, individual travel habits, and economic conditions. Prices for accommodation, food, transportation, and activities may fluctuate due to seasonal demand (e.g., high season vs. low season), local festivals or holidays, and currency exchange rate changes (for instance, inflation can rapidly affect prices in some countries). The budget ranges provided are guidelines – a thrifty traveller might manage on the lower end or even below in certain countries, whereas those who enjoy more comforts or frequent paid excursions might find themselves at the higher end or above. We advise doing up-to-date research for the destinations on your itinerary and leaving a buffer in your budget for unexpected expenses. By planning carefully and staying informed, you can ensure your South American adventure is both enjoyable and aligned with your financial plan.