The True Cost of Travel: How Much Does It Actually Cost to Travel the World?
How much does it cost to travel the world? It’s the question every aspiring long-term traveler wants answered, and the one that almost nobody answers with actual numbers.
I’m going to.
I tracked every single expense on a year-long trip in 2015 – 2016 that took me through 40+ countries across Europe, the Middle East, Japan, Southeast Asia, the Philippines, China, Australia, New Zealand, Indonesia, Nepal, Sri Lanka, and Taiwan. Every hostel, every bus ticket, every questionable street food purchase. I came home with a spreadsheet that tells the full story.
Here’s what it actually costs to travel the world.
Disclosure: Some of the links below may be affiliate links. At no additional cost to you, I may earn a small commission if you make a purchase.
The Real Numbers: What 378 Days of World Travel Cost Me
Let’s start with the number everyone wants: I spent $21,935 over 378 days of travel. That works out to an average of $58 per day, or about $1,781 per month.
Keep in mind, all of these numbers are from 2015 and 2016.
Adjusted for 2026 at about a 40% increase (yes, really!), this would be closer to $30,000 for 378 days. To adjust for current rates, you’ll need to multiply all of the numbers by 1.4 to ensure you are budgeting appropriately!
My original budget was $18,000 for the year, roughly $1,500/month or $50/day + travel insurance. I went over, but not by as much as you might think given that I traveled through Scandinavia, Japan, Australia, and New Zealand, which are among the most expensive destinations on the planet.
Here’s how that $21,935 broke down by category:
| Category | Total Spent | % of Budget |
|---|---|---|
| Transportation (flights, buses, trains, ferries) | $8,002 | 36.5% |
| Accommodation | $4,312 | 19.7% |
| Activities & Entrance Fees | $2,907 | 13.3% |
| Food | $3,191 | 14.5% |
| Other (insurance, laundry, ATM fees, etc.) | $1,821 | 8.3% |
| Going Out (bars, nightlife) | $744 | 3.4% |
| Shopping (clothes, souvenirs, gear) | $528 | 2.4% |
| Visas | $431 | 2.0% |
Things that Stand Out
- Transportation is the biggest expense by far, more than a third of total spending. This is true for any long-term traveler. International flights between regions are expensive, and when you’re moving through dozens of countries, they add up fast. The Kathmandu-to-Tokyo flight alone was $367. The Shanghai-to-Melbourne flight was $314.
- Food was surprisingly cheap. Just 14.5% of my total spending, or an average of $8.44 per day. Cooking at hostels, eating local markets, and avoiding tourist restaurants makes an enormous difference as does having breakfast at your accommodation. In Southeast Asia, Myanmar, and Eastern Europe, I routinely spent $3–6/day on food. And no, I was not starving.
- Accommodation was $4,312 over 378 days, about $11.40/night average. This reflects staying in hostel dorms for most of the trip, plus a significant chunk of nights spent with friends and locals (which are recorded as $0). When I did pay for accommodation, real hostel costs ranged from about $5–7/night in Southeast Asia to $25–35/night in Scandinavia and Australia.
How Much Did Each Month Cost?
The month-by-month breakdown tells you as much as the total. Some months were almost suspiciously cheap, others hit hard.
| Period | Region | Monthly Cost | Daily Average |
|---|---|---|---|
| Month 1 | Scandinavia (Norway, Sweden, Denmark) | $1,616 | $52/day |
| Month 2 | Central Europe (Germany, Austria, Italy, Czech Republic, etc.) | $1,671 | $56/day |
| Month 3 | Balkans & Greece (Croatia, Bosnia, Serbia, Bulgaria, Greece) | $1,110 | $36/day |
| Month 4 | Middle East & Egypt (Israel, Jordan, Egypt + Morocco) | $1,787 | $60/day |
| Month 5 | Japan (Tokyo, mostly staying with a friend) | $1,309 | $42/day |
| Month 6 | Japan (Kyoto, Osaka, Hiroshima) + Philippines | $1,576 | $51/day |
| Month 7 | Hong Kong, China, + start of Australia | $1,598 | $53/day |
| Month 8 | Australia & New Zealand | $2,861 | $92/day |
| Month 9 | New Zealand + East Australia Coast | $2,002 | $67/day |
| Month 10 | Australia + Indonesia (Bali, Gili Islands, Lombok, Flores) | $1,092 | $35/day |
| Month 11 | Indonesia, Myanmar, Thailand | $1,462 | $47/day |
| Month 12 | SE Asia, Taiwan, Singapore, Sri Lanka, Nepal | $2,337 | $81/day |
| Month 13 | Final days (Nepal to Tokyo to home) | $214 | $18/day |
Things that Stand Out
- The Balkans was the cheapest region I visited. $36/day across Croatia, Bosnia, Montenegro, Serbia, Bulgaria, and Romania. Hostel beds ran $10–15/night, street food was $2–4, and bus tickets between countries were $10–25. The area is beautiful and dramatically underpriced relative to Western Europe.
- Australia and New Zealand were the most expensive months. Month 8 hit $92/day, my highest average of the whole trip. Even staying in hostels, accommodation ran $20–30/night, food was expensive, and big experiences like the Great Barrier Reef ($121), Doubtful Sound in New Zealand ($112), and Fraser Island ($119) added up. That said, I don’t regret a single dollar of it. You can also keep Australia costs down significantly if you work holiday visas, cook every meal, and camp… I didn’t do any of those things.
- Japan was cheaper than you should expect because I spent most of my time with a friend in Tokyo, which eliminated accommodation costs for weeks. My actual Japan days that had costs ran about $15–25/day for food and transport, which is modest for Japan. My honest estimate for someone budgeting properly in Japan without a local host is $50–65/day.
What Does It Cost to Travel by Region?
Based on my actual daily spending across the trip, here’s a realistic daily budget guide for each major region, covering accommodation in a hostel dorm or budget guesthouse, local food, public transport, and a few activities:
| Region | Budget Traveler/Day | What to Expect |
|---|---|---|
| Scandinavia (Norway, Sweden, Denmark) | $60–80 | Hostel dorms $30–40/night; groceries help |
| Western/Central Europe (Germany, Austria, Italy, France) | $50–70 | Wide range; Eastern cities like Prague, Krakow much cheaper |
| Eastern Europe (Balkans, Poland, Baltics, Romania, Bulgaria) | $30–45 | Great value; hostel beds $10–15, food $5–10 |
| Middle East (Israel, Jordan) | $50–70 | Israel is pricey; Jordan moderate |
| Egypt & Morocco | $30–50 | Very affordable; watch for tourist pricing |
| Japan | $50–70 | Cheap food surprises; transport and accommodation add up |
| China | $30–45 | Budget-friendly except for visa logistics |
| Southeast Asia (Thailand, Laos, Myanmar, Vietnam, Cambodia) | $25–40 | Among the best value in the world |
| Philippines | $30–45 | Island hopping and diving add costs |
| Indonesia (Bali, Lombok, Flores, Java) | $30–45 | Can go much lower in rural areas |
| Australia | $70–100 | Everything costs more; plan for it |
| New Zealand | $65–90 | Comparable to Australia |
| Nepal (including Everest Base Camp trek) | $55–75 | Trekking costs (guides, permits, teahouses) add up |
| Sri Lanka | $25–40 | Excellent value |
| Taiwan | $35–50 | Good food, cheap transport |
The Big Expenses You Have to Budget For Separately
Beyond daily costs, there are categories that hit in chunks and need to be planned for:
- Initial flights: My transatlantic flight from NYC to Oslo was $164. The flight home from Tokyo to Dayton, Ohio was around $650. These big bookend flights are a real cost that people often undercount.
- Regional flights: When I flew from Tallinn, Estonia to Athens, Greece, $179. Yangon, Myanmar to Bangkok, $40. Cairo to Barcelona, $195. These inter-regional flights are necessary and significant. Budget $100–200 per major region jump.
- The Everest Base Camp trek: My Nepal month was expensive partly because of the EBC trek. The Lukla flight alone was $150 each way. Permits, teahouse accommodation, and guide costs added up to $600–900 for the full trek. It’s worth it, but plan for it. When I went back in 2025, the cost for EBC had gone up some, but not substantially.
- Travel insurance: I paid $923 upfront for travel insurance before leaving. This is non-negotiable for a year-long trip. Skimping here is how people end up funding a medical evacuation from a remote teahouse.
- Visas: I spent $431 on visas over 378 days. Not every country charges one (most of Europe doesn’t for US passport holders), but China ($151 at one point), Jordan, Israel, Egypt, Nepal, Myanmar, and Sri Lanka all required fees. This averages to just $1.14/day but arrives in lump sums.
How Much Should You Budget for a Year of World Travel?
Based on my actual experience, here’s what I’d tell someone planning a similar backpacker-style trip:
- $20,000–$25,000 is a realistic budget for a year of around-the-world travel if you’re staying in hostels, eating local food, using buses and budget flights, and hitting a mix of cheap and expensive destinations.
- Under $15,000 is possible if you stick to budget destinations (Southeast Asia, Eastern Europe, Central America, South America), cook often, travel overland when possible, and work or Couchsurf occasionally. It requires discipline but it’s doable.
- $30,000+ if you want private rooms regularly, restaurants over street food, or you’re including particularly expensive destinations like Scandinavia, Switzerland, Japan, or Australia as a large portion of your itinerary.
My trip included Scandinavia, Western Europe, Japan, and Australia, some of the most expensive destinations in the world, which pushed my average up. If I’d spent the same amount of time in Southeast Asia, Indonesia, Nepal, and Eastern Europe instead, I’d have come home significantly under $15,000.
Reminder: All of these numbers are from 2015 and 2016.
To adjust for current 2026 rates, you’ll need to multiply all of the numbers by 1.4 to ensure you are budgeting appropriately!
The Hidden Costs of Long-Term Travel
A few things that surprised me or that I underestimated:
- ATM fees and currency exchange losses. I have many “ATM fee” entries, sometimes $5 per transaction in countries with limited banking infrastructure. A bank account that reimburses ATM fees internationally is one of the best travel hacks that saves real money over a long trip.
- Laundry. Shows up regularly in my tracking. In budget destinations, sending laundry out costs $2–5 per load. It can add up over a year.
- Back home expenses like car insurance. While I minimized my expenses at home by giving up my apartment and cancelling my phone plan, I did keep my car which meant keeping it insured. That means I added ~$60/month for something I wasn’t using at all. Depending on your living situation, you may have a lot of back home expenses or none.
- Moving days are expensive days. High-transport-cost days almost always correlate with high-other-cost days. Moving cities means transit, food on the go, and often a night’s accommodation that doesn’t give you time to cook or settle. Thus, the less you move, the less you’ll spend. I was on the go a lot.
- Activities are where the best memories come from, and cost more than you’d think. The Komodo Island boat trip was around $125 over 4 days. The Whitsundays day cruise in Australia was $115. The Everest trek and teahouses were $999. Great Barrier Reef diving was $121. Worth every dollar, but budget for them.
How to Keep the Cost of Traveling the World Low
There are a number of ways you can decrease the cost of traveling around the world. Three of the most impactful are:
- Finding travel companions: Travel with a partner in crime to share some of the expenses, like any taxis, hotels, car rentals, etc.
- Slowing down your travel: Spend less on transportation by spending more time in each location.
- Traveling to cheaper locations: Pick your travel destinations wisely.
Some destinations are inherently very expensive (looking at you Scandinavia), while others are extremely affordable (hellllloooo Southeast Asia!). This could mean the difference between $30+ basic meals vs. $1 delicious meals or a $40 hostel dorm bed vs. under $5.
Read more: 44 Pro Money Saving Tips While Traveling
Understanding How Budget Friendly Travel Can Be
If you want to understand what an amazing, but affordable trip might look like, take a look at my Budgeting for the Philippines post. I spent 13 days island-hopping across some of the most beautiful beaches in the world, like Boracay, for under $600. That $600 includes:
- 3 scuba dives
- 1 flight from Tokyo to the Philippines
- 2 flights within the Philippines
- 1 flight from the Philippines to Hong Kong
- 5 nights out
- Motorbike rental a couple of times
FAQs: How Much Does It Cost to Travel the World?
Based on my own 378-day trip covering 40+ countries across Europe, the Middle East, Asia, Australia, and New Zealand, I spent $21,935 or about $58/day or $1,781/month. That includes all flights, accommodation, food, activities, visas, and travel insurance. Budget travelers sticking to cheaper regions can do it for $15,000–18,000. Those including expensive destinations like Scandinavia, Japan, and Australia should budget $20,000–25,000.
Transportation, by a wide margin. Flights, trains, buses, and ferries accounted for 36.5% of my total spending ($8,002 out of $21,935). This surprises people who assume accommodation is the biggest cost, and it could be if you aren’t a hostel person. When you’re moving between countries regularly, transport adds up fast. The best way to reduce this is to slow down, stay longer in each place, and travel overland where possible.
Southeast Asia is hard to beat. Thailand, Laos, Myanmar, Vietnam, and Cambodia all come in under $35/day on a budget. Eastern Europe (the Balkans, Poland, Romania, Bulgaria) is similarly affordable and dramatically less crowded. In both regions, hostel beds run $8–15, local meals cost $2–5, and bus transport between cities is $5–20.
Long-term travel is almost always cheaper per day than short vacation travel. On a two-week vacation, your flights are a large fixed cost divided by fewer days. On a year-long trip, those fixed costs are amortized across hundreds of days. Additionally, when you’re not rushing, you can cook more, use slower/cheaper transport, and find better-value accommodation. My daily average of $58 is lower than many people’s costs on a 10-day vacation.
It depends heavily on where you are. A rough guide from my actual spending: Eastern Europe and Southeast Asia, $25–40/day. Western Europe and Japan, $50–70/day. Australia and New Zealand, $70–100/day. These figures include accommodation, food, transport, and some activities, but not international flights.
Using my real averages: Southeast Asia or Eastern Europe at $35/day = $3,150. Western Europe at $55/day = $4,950. Australia/NZ at $80/day = $7,200. For a mix of regions, budget $4,000–6,000 for three months of backpacker-style travel, plus your international flights.
$50/day is a solid global average for a backpacker who stays in hostels, eats local food, uses public transport, and doesn’t skip experiences. You’ll be comfortable and not counting every cent. My actual average across 378 days in expensive and cheap destinations combined was $58/day. Budget-focused travelers in cheaper regions can do $30–40/day; those in Australia, Scandinavia, or Japan should budget $70–90/day.
The most commonly forgotten costs are travel insurance (budget $1,000–1,500 for a year), visa fees (can add $300–500 depending on itinerary), ATM fees and currency conversion losses, laundry ($2–5 per session, multiple times a month), transportation on moving days (always more expensive than expected), and the big once-in-a-lifetime experiences like treks, diving courses, and multi-day tours that aren’t in the daily average but are often the highlight of the trip.
Can You Afford to Travel?
Here’s the honest answer: if this is a priority, yes, probably.
Travel is not only for the wealthy. My year cost me $21,935. That’s less than a year of rent in many US cities. It’s less than the average new car payment over 4 years. It’s achievable for most working adults who make deliberate choices about how they spend money for a period of time before departure.
That said, it requires actual saving. It’s not going to happen by accident. And it requires accepting that for a year, your home is a hostel bed, your transport is a 14-hour overnight bus, and your kitchen is a shared one in a guesthouse in Myanmar. That trade-off is 100% worth it, but you have to want it.
The math is simple. The discipline is the harder part.
Affording Your Trip of a Lifetime
Knowing the true cost of traveling the world is critical in planning and booking your dream trip. It gives you an end financial goal in mind so that you can start to get a sense of a timeline for your trip. When will you be able to afford to travel by? Where will you go on your trip? How long will you be gone? All important things to factor in.
Learn more about preparing for your trip:
- 9 Important Things to Do Before Traveling Abroad
- How to Save Money to Travel: A Real Starter Guide
- The True Cost of Travel: How Much Does It Actually Cost to Travel the World?
- What is the Schengen Area? (And Why It Matters for Your Trip to Europe)
- Quitting Your Job to Travel: Is It a Good Idea or Not?
- Are Round the World Tickets Worth It for Budget Travelers?
- Long Term Travel: What it is & how to do it
- Budgeting 101: Learn How to Create a Budget in Just 5 Simple Steps
- How to Pick a Travel Destination: Key Things to Consider
- The 5 Stages of Culture Shock and How They Impact Travelers
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