Budget Travel: Destinations Where the Cost of Living Is Low and the Canadian Dollar is Strong
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Travelling on a budget doesn’t mean enjoying the trip any lesse. In fact, some of our fondest memories often come from “traveling on a budget”.
It’s entirely possible to discover new places and have unforgettable experiences without coming back with an empty bank account.
A budget trip can be just as rewarding as a luxury vacation. After all, what could be better than saving money and points to travel again sooner or grow your savings?
However, travelling to the U.S. can be a real financial headache for Canadians, especially with the current weakness of the Canadian dollar. Our currency has been falling steadily, and recently reached a four-year low against the U.S. dollar. This situation makes getting away even more expensive, especially as the cost of living is already high. Considering Donald Trump’s decision to impose 25% tariffs on Canada and the onset of the trade war, the loonie has weakened even further against the US dollar. As a result, travel to the U.S. is going to cost you even more.
Fortunately, there are many superb destinations where the Canadian dollar will take you much further! Rather than being discouraged by an unfavorable exchange rate, why not explore countries where your purchasing power is much stronger? Whether in Latin America, Asia, or even Eastern Europe, some destinations offer you the chance to enjoy an exceptional vacation without breaking the bank.
The following countries can be visited on a small budget and for as little as $50 a day. However, this amount can be spent in very different ways depending on the destination:
- standard air-conditioned hotel room, meals at restaurants, and activities in Asia
- a bed in a dormitory, groceries and free activities in Europe
To use points on expenses at your destination, travel points applicable to purchases and cash back rewards should be prioritised.
What's the Budget for a Week's Vacation, and Where Can You Go for Less?
Travelling on a budget of less than $50 per day (excluding airfare) is quite feasible in some parts of the world. In Southeast Asia, countries such as Thailand, Vietnam and Cambodia offer excellent value for money, with affordable accommodation at $10-15 per night, local meals at less than $10 per day and inexpensive activities such as temple visits and beach excursions. In Central America, Guatemala and Nicaragua also offer budget travel, with overnight stays between $10 and $20, meals between $3 and $7 and economical activities such as hiking or visiting archaeological sites. In Eastern Europe, destinations such as Bulgaria and Romania offer a more affordable alternatives to the more touristy countries, with accessible accommodation and low-cost attractions. With a budget of $350 for a week, it’s possible to discover these destinations in a rewarding way by optimizing spending and using reward points.
Airline Tickets for Budget Travel
However, we do not include the cost of the flight when aiming for a budget trip of $50 per day.
To cushion this aspect of the budget, there are credit card points! The strategies for each region will be detailed in their respective sections in this article.
Which Months to Travel for Less?
There are many financial and practical advantages to travelling in low or shoulder season, compared to peak season.
In fact, tourist attractions are much less crowded in the low season. Travellers can explore attractions without long lines and take full advantage of each site. Shoulder season, on the other hand, combines some of the advantages of the low season with often pleasant weather conditions and tourist services that are always up and running. So, to save on travel costs, it’s advisable to plan your trips outside peak periods, such as January, February, September and November, depending on your destination.
Travel Tip: Which Countries Are the Cheapest to Go On Vacation To?
Which Destinations Offer the Best Value for the Canadian Dollar?
Travelling with the Canadian dollar can be more advantageous in certain countries where the cost of living is low and the exchange rate is favourable. Here are a few destinations where your budget will stretch further:
- Mexico: Excellent value for money on accommodation, food and activities, especially outside the popular tourist areas.
- India: One of the most affordable countries for travellers, with very economical accommodation and meals.
- Argentina: Thanks to the fluctuating exchange rate, the Canadian dollar offers access to high-end experiences at lower cost.
- Vietnam: Tasty street food, budget accommodation and affordable transport.
- Thailand: An excellent choice for a budget holiday, especially outside Bangkok and the more touristy islands.
- Colombia: An increasingly popular destination, with competitive prices on accommodation and food.
- Morocco: Traditional accommodation (riads), gastronomy and excursions at affordable prices.
- Nicaragua: Less touristy than Costa Rica, it offers magnificent scenery at a fraction of the price.
How Much Is the Canadian Dollar Worth?
Travelling with the Canadian dollar can offer favourable purchasing power in several countries. Here’s an overview of exchange rates and daily budgets for accommodation, food, and activities:
- Mexico: $1 ≈ 14.23 MXN (≈ $52/day)
- India: $1 ≈ 60 INR (≈ $30-45/day)
- Argentina: $1 ≈ 70 ARS (≈ $45-60/day)
- Vietnam: $1 ≈ 18,166 VND (≈ $30-45/day)
- Thailand: $1 ≈ 23.47 THB (≈ $38-53/day)
- Colombia: $1 ≈ 3,000 COP (≈ $45-60/day)
- Morocco: $1 ≈ 7 MAD (≈ $45-60/day)
- Nicaragua: $1 ≈ 25 NIO (≈ $30-45/day)
In comparison, the United States is a less advantageous destination for Canadians. With an unfavourable exchange rate (1 CAD ≈ 0.69 USD), daily expenses are much higher:
- Budget: ≈ $145-200/day
- Average budget: ≈ $275-410/day
- High budget: ≈ $480 and more/day
To maximize your Canadian dollar, it’s best to opt for destinations where the cost of living is lower and the exchange rate is more favourable.
Which Countries Use the US Dollar?
Travelling to countries where the U.S. dollar is the official or commonly accepted currency can be disadvantageous for Canadians because of the exchange rate. A weaker Canadian dollar reduces purchasing power, making stays more expensive.
Countries such as Ecuador, El Salvador, Panama, Timor-Leste, Zimbabwe and several Pacific nations officially use the US dollar, while others, such as Belize, the Bahamas, Mexico (in tourist areas), Costa Rica, Cambodia and Argentina, frequently accept it. In these destinations, paying in USD is often more expensive than elsewhere.
However, some countries, such as Cambodia, combine a low cost of living with the use of the U.S. dollar, helping to offset the impact of the exchange rate. Rather than avoiding these destinations, it’s better to plan your budget carefully to optimize your spending.
Countries to Visit in Asia for a Budget Trip
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Asia is an ideal destination for travelling on a budget, thanks to the low cost of living in many countries. Contrary to popular belief, even reputedly luxurious destinations like the Maldives can be affordable by staying on the local islands, an experience my family and I were lucky enough to enjoy without breaking the bank.
This vast and diverse continent offers incredible cultural and natural riches. Whether you’re looking for spectacular landscapes, heavenly beaches or a varied gastronomy to tantalize your taste buds, Asia has something for everyone. From thousand-year-old temples to bustling markets and breathtaking panoramas, every traveller can find what they desire, without breaking the budget.
Go with Reward Points
The most popular points programs for international flights are:
Aeroplan points and Avios points are very easy to obtain. The number of points required for a round trip to Thailand in economy class is around 100,000 Aeroplan points or 100,000 Avios miles.
On the other hand, American Express Membership Rewards points are also points to aim for, as they are transferable to airline programs such as Aeroplan, Avios, Asia Miles, etc.
This way, simulations can be done to determine the amount of points needed and the amount of taxes to be paid before making the transfer. In addition, occasional transfer promotions are available. There are also sweetspots to know about:
- The Montreal-Doha-Bangkok; Bangkok-Doha-Montreal route costs 95,000 Avios.
- The Montreal-Doha-Bangkok; Bangkok-Amman-Montreal route costs 70,000 Avios.
The major difference between the two routes? Flights under the second option are operated by two Oneworld carriers and the multi-partner schedule comes into effect.
Then, if you can’t find a great route with points, you can pay in cash and use travel points, like the Scene+ to reduce your card balance and save on conversion fees!
Finally, to get around the region, Scene+ points can also be used to cover the expense of low-cost flights. In fact, all applicable travel points on expenses will be prioritized for internal flights.
| Credit card | Annual fee | Welcome offer | |
|---|---|---|---|
| $150 | |||
| $120 |
Countries to Visit in Latin America for a Budget Trip
From Canada, Central and Latin America are ideal destinations for budget travel. Not only are plane tickets often affordable, whether in cash or points, but the local cost of living means you can enjoy your trip to the fullest without breaking the bank.
These regions offer a guaranteed change of scenery, between stunning beaches with crystal-clear waters and charming towns with Spanish colonial influences. Whether you want to explore archaeological sites, hike through the jungle, immerse yourself in the local culture or simply relax, these destinations are suitable for all types of travellers, whether you’re going alone, with friends, as a couple or as a family.
For example, you could fly to Quito on the cheap (see below) and spend a week at The Free Spirit Hostel, surfing and/or doing a yoga retreat in good company! This hostel is also based in Nicaragua and offers beds in dormitories as well as private rooms.
Plus, these countries aren’t too far from us, and they’re in the same time zone (or close to it). So, these places are also perfect for remote work or simply for people who don’t want to deal with jet lag.
Go with Reward Points
The preferred point programs for flights are:
- Aeroplan points
- travel points
Airline points like Aeroplan sometimes offer quick deals. For example, Caroline found tickets to Mexico City for 20,900 Aeroplan points per person for spring break! When you use Aeroplan points at a value of at least 2 cents per point, it’s a great deal!
However, travel points should be prioritized in most cases, especially during non-peak periods. Indeed, airfare prices vary greatly and the calculation of the value of the points will tell you what will be more advantageous.
With generous welcome bonuses like those from CIBC Aventura® Visa Infinite* Card or the TD Platinum Travel Visa* Card and relatively affordable airfares, a credit card may be all you need. In fact, the points offered with the bonus will absorb the majority of the airfare.
| Credit card | Annual fee | Welcome offer | |
|---|---|---|---|
| $0 | |||
| $0 |
Countries to Visit in Europe for a Budget Trip
Many travellers don’t think of Europe as a budget destination, due to the high cost of living in Scandinavia and Western Europe. Yet many regions of the Old Continent remain accessible to those on a tight budget.
Countries like Hungary offer a wealth of culture and history comparable to that of Western Europe, but at a fraction of the price. With museums, historic sites and tourist attractions, it’s possible to enjoy an immersive experience without blowing your budget.
Then, for Portugal and Greece, there is something for every budget. On the Greek islands, we stayed in independent hotels booked with Booking.com for approximately $20 per day per person.
Go with Reward Points
The preferred point programs for flights are:
- Aeroplan points
- Membership Rewards points transferable to Avios and Flying Blue
- travel points
To travel to Europe with Aeroplan, you’ll need to aim for at least 60,000 points per person in economy class. When you look at the price of cash tickets, it’s not always a good idea to use your Aeroplan points in economy class to Europe.
In fact, bargains to Europe are common when you pay in cash. Therefore, travel points will be more useful if you want to shop around for the best fare and travel in economy class.
However, Aeroplan points are easily accumulated. So, depending on your spending habits and your ability to manage credit cards, this is still a good strategy. Then, if you are interested in business class flights, Aeroplan points and upgrade credits should definitely be on your radar.
For example, these business-class flights between Montreal and Zurich are operated by a partner airline. Thus, the amount will always remain constant, whereas the fare is dynamic on Air Canada flights.
Sure, Switzerland is far from being a budget travel destination, but it is a hub to start your trip in Europe. This is a good flight to aim for if you want to be in business class at a fixed price! In economy class, the same flight is priced at 70,000 Aeroplan points for a round trip.
Once in Europe, you can easily travel to other parts of the continent by low-cost airlines or by road.
From Montreal, the following routes are served by Air Canada partners, with prices based on a fixed fare schedule.
- Lisbon (TAP Portugal)
- Munich (Lufthansa)
- Vienna (Austrian Airlines)
- Zurich (Swiss International Air Lines)
Flights on Turkish Airlines and United should not be overlooked either to get to Europe at fixed premium rates.
However, not all free seats are available for booking with points, unlike seats on Air Canada planes. Knowing when tickets go on sale can be crucial to finding good-value tickets, and Roame can help you find premium availability.
| Credit card | Annual fee | Welcome offer | |
|---|---|---|---|
| $0 | |||
| $0 | |||
| $0 |
African Countries to Visit on a Budget
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A safari can definitely fit within a tight budget. There are options for all tastes and budgets, ranging from short excursions to luxurious all-inclusive lodge stays.
In South Africa, it’s possible to experience a two-hour guided safari for as little as $35 or R415, offering an unforgettable adventure on a budget.
Alternatively, you can rent a car and go on self-drive safaris. The most suitable parks for this kind of activities in South Africa or Namibia are:
- Kruger National Park
- Pilanesberg National Park
- Kgalagadi National Park
- Addo Elephant National Park
- Etosha National Park
- Namib-Naukluft National Park
- Damaraland
On the North African side, Morocco and Egypt are easily accessible with airline point programs and do not have a very high cost of living.
Finally, if you don’t want to worry about the details, guided tours with Gadventures are very affordable in these countries. However, they will be more expensive than doing it independently.
Go with Reward Points
The most popular points programs for international flights are:
- Aeroplan points
- Avios points
- travel points
There are many options to travel to Africa.
You could use Aeroplan points according to the fixed fare schedule on partners. In these cases, we usually get a good value even in economy class since flights to southern Africa are quite expensive.
| Credit card | Annual fee | Welcome offer | |
|---|---|---|---|
| $0 | |||
| $0 | |||
| $599 |
As for North Africa, direct flights to Morocco and Egypt can be found on Air Canada. So they’re subject to fluctuations, but that can work to your advantage too. Since these flights are sometimes inexpensive, it is advisable to have a certain amount of travel points as well.
Then, on the Avios side, the Oneworld multi-partner fare structure can be interesting to reach Cape Town on the Qsuite!
Again, the currency of American Express Membership Rewards points is very cost effective as they can be transferred to multiple programs and used as travel points!
Suggested Credit Cards
The best current offers for credit card welcome bonuses can be found here :
- The best cards for Aeroplan points
- The best cards for Avios points
- The best cards for Membership Reward Points
- The best cards for travel points
American Express Cobalt® Card: A Card for Everyday Purchases
However, the American Express Cobalt® Card deserves special attention in strategies to keep the cost of a budget trip to a minimum. Especially for those who prefer not to have multiple credit cards.
A good strategy would be to subscribe to the American Express Cobalt® Card and use it as your main card for earning points. Then have another card, such as the National Bank World Elite Mastercard or Scotiabank Passport Visa Infinite + for when American Express is not accepted.
It’s the only card that earns 5 Membership Rewards points per dollar at grocery stores and restaurants. Membership Rewards points are very versatile, as they can be transferred to:
- Aeroplan points at a ratio of 1:1
- Avios miles at 1:1 ratio
- airline points in various programs
- hotel points
Or they can be used as:
- cash back
- travel points
| Credit card | Annual fee | Welcome offer | |
|---|---|---|---|
| $191.88 |
So, credit card sign-up bonuses are very attractive, as they allow you to pick up a lot of points quickly.
However, to earn a significant number of points on everyday purchases (organic spending), opting for a rewards card like the American Express Cobalt® Card is essential.
We mention 5X points at the grocery store, but it doesn’t stop there! In fact, a multitude of business gift cards can be found in grocery stores. So you can collect 5X points on Amazon, on gas, on Airbnb, at the SAQ, at Simons, at IKEA, etc.
Paying Annual Credit Card Fees: A Nonsense Expense for Budget Travel?
Finally, do annual credit card fees cut into the budget trip? The welcome bonus more than offsets the annual fee, and many credit cards offer a rebate for the first year.
Then, for credit cards you want to keep for the long term, the annual fee is usually justified by the benefits you would otherwise have paid out:
- travel insurance
- baggage fees
- access to airport lounges
- free wifi all over the world
- no conversion fee
- annual credit
Otherwise, promotional offers are frequent with some issuers such as American Express.
If you take advantage of the benefits and offers of credit cards, you won’t have paid many fees to hold these cards in the end.
| Credit card | Annual fee | Welcome offer | |
|---|---|---|---|
| $0 | |||
| $150 |
No Foreign Currency Conversion Fees
Once you’re in a country where your Canadian dollars can go a long way, consider getting a no-fee foreign currency exchange card to save on bank charges.
For example, the Wealthsimple Cash card and the Wise card: they charge no foreign currency conversion fees and allow free or low-cost withdrawals.
| Credit card | Annual fee | Welcome offer | |
|---|---|---|---|
| $0 | |||
| $0 |
Bottom Line
The key to budgettravel is choosing the right destination and credit cards. Learn how to manage your personal finances with our guides and try our tips on how to use your Reward Points to get the most value out of them.
Exploring the world of travel rewards is a well-paid hobby that gives you tons of opportunities!
