5 ways to stay on budget in South America
1. Compare tours after you arrive instead of booking months ahead
2. Carry cash, especially U.S. dollars for Bolivia
3. Use a no-FX fee credit card where cards are accepted
4. Take overnight buses to save on transportation and accommodation
5. Read tour reviews before choosing the cheapest option
Preparing for a South American trip
When you’re traveling throughout North America, it’s generally a good idea to book as much as you can in advance—like concert tickets or a table at a sought-after restaurant. But in parts of South America, the informal culture means it’s often best to physically be there and suss things out before parting with your cash.
There is an exception to this rule: travel arrangements, and sometimes accommodation. Airfares can get pricier as you near the flight date, so it’s a good idea to secure these in advance.
You’ll also want to bring a lot of cash. In South America, and especially in Bolivia, it’s a good idea to bring US dollars, as Bolivia’s “official” exchange rate gives you roughly 30% less than if you trade with cash.
What does a South America trip cost?
Budget traveller: $40–$70 CAD/day
Comfortable traveller: $80–$150 CAD/day
Higher-end traveller: $200+ CAD/day
Peru: Lima and Cusco
The Peruvian capital of Lima is a solid place to start a South American trip, given that flights can be extremely affordable. I travelled from Toronto Pearson with a stopover in the Dominican Republic for around $250 CAD.
The city is split into different districts, each with its own flavour. The central areas near Cercado de Lima are hustling and bustling. Other districts near the coast are extremely safe, photogenic, and bohemian—especially Miraflores and Barranco. If, like me, you’ve lived near a lake for so long that you’ve almost forgotten what the seashore looks like, it’s a great change of pace to swim or surf on the coast and be buffeted by the waves.
In Lima, you’ll have access to high-end food at a fraction of the cost of in Canada. A personal favourite was Casa Tambo, where you’ll get a quality array of Peruvian dishes at reasonable prices. If you’re hostelling it’s also very cheap—I stayed in a private room for just $22 per night.
Then there’s Cusco (also spelled Cuzco), which is a gateway to tourist hotspots like Machu Picchu, the Rainbow Mountain, and the Peruvian sections of the Amazon Rainforest, like Manu. The city has an elevation of 3,399 meters (11,152 feet) above sea level and it can be hard to deal with when you first arrive—especially if you fly in. In my first few days in Cusco, I felt like there was a weight pressing on my head and it took days to gradually wear off. Staying in the more touristy Cusco cost me roughly double, at $42 per night, though it’s generally seen as a cheaper place to be than Lima.
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While credit cards are accepted at many hotels and restaurants in major tourist areas, cash remains essential for smaller restaurants, markets, and local transportation. If you’re not using cash, it’s a good idea to use a credit card with no foreign transaction fees to avoid the typical 2.5% foreign exchange fee charged by many Canadian cards. It’s also not unusual for Peruvian shops and restaurants to charge a surcharge of around 5-6%, so if in doubt bring more cash.
Why pre-booking everything isn’t a good idea
Cusco is where I learned a hard lesson: you shouldn’t book too much in advance in Peru.
Prior to leaving Toronto, I paid a $250 USD deposit for a rainforest trip. It was part of a three-day trip costing over $1,000 USD. When I arrived, I realized how much you can actually get for your money in Peru. I went to a hole-in-the-wall tourism agency that offered a very similar trip for $250 USD all in—and I realized that I’d been ripped off.
Unfortunately, I didn’t end up visiting the rainforest at all since the experience left a sour taste.
I did refrain from booking Machu Picchu in advance, which was a good call since I ultimately booked a trip for a quarter of the price advertised online—for just $110 USD in cash. This included a bumpy four-hour bus ride there and back, multiple meals, a hotel stay, a ticket to the Machu Picchu site, and a wizened tour guide who knew the site like the back of his hand. You win some, you lose some.
Machu Picchu
Going to Machu Picchu is worth the hype. The first part of my tour involved walking alongside a railway track with monolithic mountains on the horizon. Every so often a train would trundle by and you’d have to move to the side of the trail.
After staying overnight at Aguas Calientes, a charming town built into the base of the mountain, you’re able to walk up to Machu Picchu via a staircase carved into the mountain. The lost city gives you a real picture of human ingenuity—the buildings are earthquake resistant and feature aqueducts and structures that track the time of day.
