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.

Oaxaca, Mexico

Oaxaca is a vibrant city in southern Mexico, celebrated for its rich cultural heritage, colorful festivals, and mouthwatering cuisine. Despite offering so much, it remains surprisingly affordable compared to more tourist-heavy destinations like Playa del Carmen or Cancun.

A walking tour of Oaxaca’s historic center reveals colonial architecture, intricate churches, and bustling markets. Hiring a guide is inexpensive, but exploring on your own is equally rewarding. Try street foods like tlayudas (giant crispy tortillas topped with beans and cheese) or tamales from local vendors for under $2.

For an adventurous and budget-friendly day trip, visit Hierve el Agua, a petrified waterfall with natural mineral pools. Public transport or budget-friendly group tours help keep costs down while offering spectacular views of the surrounding mountains.

Gjirokastër, Albania

Nestled in the heart of the Balkans, Gjirokastër is a UNESCO World Heritage Site known as the “City of Stone.” Its unique Ottoman-era architecture, cobblestone streets, and hilltop castle make it a captivating yet overlooked gem.

Entry to Gjirokastër Castle costs only a small fee, and the views of the valley below are unbeatable. Wander the old bazaar where you’ll find handcrafted souvenirs, textiles, and woodwork at wallet-friendly prices.

Accommodations in Gjirokastër are pretty cheap, with charming guesthouses offering comfortable stays for well under $50 per night. Dining out won’t strain your budget either, with restaurants serving rich Albanian staples like byrek (savory pie) or qofte (meatballs).

Luang Prabang, Laos

Much of Southeast Asia attracts budget travelers, but Luang Prabang in Laos often flies under the radar. This serene town blends French colonial influences with Buddhist traditions, creating a peaceful yet culturally rich escape.

The morning alms-giving ceremony, where monks collect offerings, is free to witness and deeply moving. Entrance fees for famous sites like the Kuang Si Waterfalls or Mount Phousi are modest, and the views they deliver are priceless.

Accommodations range from boutique hotels to hostels in town. Local night markets satisfy your taste buds with dishes like laap (spicy minced meat salad) or khao soi (rice noodle soup) for less than $5.

Šibenik, Croatia

Forget crowded Dubrovnik. Šibenik, a coastal city in Croatia, offers stunning architecture, crystal-clear waters, and budget-friendly prices. It’s also a gateway to the stunning Krka National Park, known for its waterfalls and scenic trails.

Entry into Krka National Park is reasonably priced, and early morning visits allow you to avoid peak crowds. The town itself is filled with free or low-cost attractions like Saint James Cathedral, a UNESCO site.

Stay in budget guesthouses or rent apartments in the old town. Dining by the sea is accessible on a budget, with seafood dishes like grilled sardines or black risotto often costing less than $15 per meal.

Medellín, Colombia

Once infamous, Medellín has transformed into an inspiring destination for travelers seeking vibrant culture and stunning scenery. Situated in a lush valley, this “City of Eternal Spring” boasts pleasant weather year-round.

Take a ride on Medellín’s metro cable cars, which offer panoramic views. The Comuna 13 neighborhood, once plagued by violence, is now an open-air museum of vibrant murals and local entrepreneurship. Guided tours are inexpensive and support local artists.

Hostels and boutique guesthouses are budget-friendly throughout the city, and hearty Colombian meals featuring dishes like bandeja paisa (a platter of meat, rice, beans, and plantains) cost very little when eating at local restaurants.

Kotor, Montenegro

Kotor, a medieval town situated along Montenegro’s stunning coastline, is a haven for budget-conscious travelers. Its maze of narrow streets, charming squares, and impressive fortifications transports visitors to a bygone era.

Climbing the Kotor Fortress is a must for incredible views of the bay, and the entrance fee is minimal. Nearby, you can explore picturesque villages like Perast or take public buses to beach spots along the Adriatic coast.

Accommodations in old-town Kotor range from budget hostels to mid-range hotels offering great value for money. Local markets sell fresh produce and snacks, perfect for putting together a picnic with views of the bay.

Hoi An, Vietnam

Hoi An is a hotspot for those who love charming streets, lantern-lit evenings, and rich cultural history. Despite its growing popularity, it remains one of Vietnam’s most budget-friendly destinations.

A small entrance fee grants access to the ancient town’s many historic buildings and assembly halls. Tailor-made clothing is a specialty here, and custom garments cost far less than in Western countries.

Street food markets serve an array of flavors, from cao lau noodles to bahn mi sandwiches, all for under $3. Cycling around the lush countryside or relaxing at An Bang Beach is either free or highly affordable.