Traveling the world usually makes people think about the iconic landmarks and busy tourist hubs that everyone visits. Paris, Milan, and Rome are a few of the places people typically visit on vacation, but they're not really wallet-friendly. People seem to forget about the hidden gems that combine charm, affordability, and fewer crowds. Discovering these underrated and budget-friendly destinations means you can experience unique cultures, breathtaking landscapes, and unforgettable moments without spending a fortune. Venturing off the beaten path saves you money and can invite authentic experiences that big-name hotspots just can’t match. We’re going to share some of the most incredible, underrated destinations around the globe that people seem to forget about.

1. Oaxaca, Mexico

Oaxaca, a vibrant city in southern Mexico, offers colorful streets, rich culture, and fantastic food without hurting your wallet. Known for its lively festivals and traditional dishes, it’s an excellent destination for those looking to experience Mexico beyond the usual beach resorts.

Cost Breakdown:

  • Accommodation: Budget-friendly guesthouses start at $25 per night, with boutique hotels averaging $50-$70.
  • Meals: Try street foods like tlayudas or tamales for $2, or enjoy a full meal at a local restaurant for $10-$15.
  • Activities:
    • Walking tours of the historic center are free or cost around $10 with a guide.
    • A day trip to Hierve el Agua costs about $15-$20 when using public transport.

Money-Saving Tips:

  • Opt for local transportation over taxis to reach popular attractions.
  • Explore Oaxaca's markets to buy handmade souvenirs at reasonable prices.

2. Gjirokastër, Albania

Known as the "City of Stone," Gjirokastër is a hidden Balkan treasure filled with charm and history. Its unique Ottoman-era architecture and cobblestone streets make it a fairy-tale-like destination for travelers seeking something different.

Cost Breakdown:

  • Accommodation: Family-run guesthouses cost just $30-$50 per night.
  • Meals: Sample Albanian staples like byrek or qofte at restaurants for $5-$10.
  • Activities:
    • Entry to the Gjirokastër Castle is only $5.
    • Souvenirs in the old bazaar are both unique and affordable.

Money-Saving Tips:

  • Stay in smaller guesthouses instead of large hotels for a local and cost-effective experience.
  • Visit in spring or fall to take advantage of lower prices and fewer crowds.

3. Luang Prabang, Laos

Luang Prabang, a serene Laotian town, combines Buddhist traditions with French colonial charm for an unforgettable getaway. It’s the perfect place for travelers who want to slow down, appreciate spiritual experiences, and enjoy natural beauty.

Cost Breakdown:

  • Accommodation: Hostels start at $15 per night, while boutique guesthouses are typically $30-$50.
  • Meals: Dishes like laap or khao soi at night markets cost $3-$5.
  • Activities:
    • Kuang Si Waterfalls entry is $2-$3.
    • Witness the free morning alms-giving ceremony with local monks.

Money-Saving Tips:

  • Rent a bicycle for $5/day to explore the town instead of hiring guides.
  • Shop for fresh fruit or snacks at market stalls for a budget-friendly lunch.

4. Šibenik, Croatia

Šibenik, a stunning coastal city in Croatia, is an ideal alternative to crowded Dubrovnik. With its rich history and breathtaking natural scenery, it’s a must-visit destination for budget-conscious travelers.

Cost Breakdown:

  • Accommodation: Guesthouses in town cost $40-$60 per night.
  • Meals: Enjoy seafood like black risotto for $10-$15 at local restaurants.
  • Activities:
    • Entrance to Krka National Park is affordable at $15-$20.
    • Visits to Saint James Cathedral are low-cost or free.

Money-Saving Tips:

  • Explore the town on foot for free attractions.
  • Visit in early spring or late fall for discounted stays and smaller crowds.

5. Medellín, Colombia

Once known for its turbulent history, Medellín has transformed into a lively, artistic, and budget-friendly destination. Nestled in a lush valley, it offers year-round spring-like weather, cultural experiences, and stunning views.

Cost Breakdown:

  • Accommodation: Hostels and boutique hotels are priced from $20-$50 per night.
  • Meals: A local bandeja paisa platter costs as little as $5-$8.
  • Activities:
    • Metro cable car rides cost under $1 and offer panoramic city views.
    • Guided Comuna 13 mural tours start at $10 per person.

Money-Saving Tips:

  • Stay in shared accommodations for even more affordable lodging.
  • Enjoy casual meals in local eateries for authentic taste at a fraction of the price.

6. Kotor, Montenegro

Kotor, a medieval town along the Adriatic coast, offers breathtaking views and historical charm at traveler-friendly prices. Its narrow streets, scenic bay, and ancient fortifications make it perfect for those seeking both adventure and relaxation.

Cost Breakdown:

  • Accommodation: Hostels in Old Town start at only $20 per night.
  • Meals: Fresh seafood and traditional Balkan dishes cost $8-$12.
  • Activities:
    • Climbing the Kotor Fortress costs just $3.
    • Take buses to explore nearby coastal villages for under $5.

Money-Saving Tips:

  • Visit during the shoulder season (April-May or September) for better deals and fewer visitors.
  • Shop in local fresh produce markets for affordable snacks and on-the-go meals.

7. Hoi An, Vietnam

Hoi An, with its lantern-lit streets and ancient charm, offers a magical experience that doesn’t break the bank. This Vietnamese gem is perfect for those who appreciate beautiful culture, history, and incredible food.

Cost Breakdown:

  • Accommodation: Hostels and guesthouses cost $15-$30 per night.
  • Meals: Enjoy cao lau noodles or bahn mi sandwiches for less than $3.
  • Activities:
    • A pass to the ancient town’s attractions is just $4-$5.
    • Cycling around town costs $2-$3 per day.

Money-Saving Tips:

  • Ask tailors for discounts when buying multiple garments.
  • Rent a bike instead of paying for motorized transport.

Traveling to unique and affordable destinations allows you to enjoy incredible cultural experiences and stunning scenery without exceeding your budget. By planning smartly, dining locally, and exploring off-peak seasons, you’ll save money while creating unforgettable memories.