15 Affordable Places To Travel In 2025, According To A New Report

Forbes

31-03-2025

Albufeira, a vacation destination in the Algarve region of Portugal, the cheapest place to travel in 2025, according to a new report.
Looking for the most affordable places to travel in 2025? A new report from the U.K.'s Post Office has the best places to stretch your travel budget this year. And while the annual Holiday Money Report is from a British-based company, it's a helpful resource for U.S. travelers looking for the cheapest places to travel.
To come up with the list, the Post Office looked at 47 popular travel destinations around the world, comparing currency strength and the cost of eight tourist essentials—from dinner and drinks to sunscreen and insect repellent—and then ranked the spots that offer the best value.
Even though the report doesn't include hotels or airfare, it gives a solid snapshot of on-the-ground expenses and where you can save the most.
This year's winner? The Algarve in Portugal. This sunny region on Portugal's southern coast takes the top spot thanks to consistently low prices for meals and drinks, with a daily average budget for travel essentials of about $76.06. (The prices in this article have been calculated using a conversation rate on the date of publication of £1 to $1.29.)
Ferragudo in the Faro district of the Algarve, Portugal.
In the Algarve, a three-course dinner for two with wine costs about $52.03, which is a third of the cost of what you'd pay in New York City. Beautiful beaches, pretty beachside towns and world-class golf courses add to the Algarve's appeal.
Coming in second on the list is Cape Town, South Africa, which also ranked second on the 2024 list. Cape Town offers incredible scenery along with solid value for money. And even though local prices rose about 11% from 2024, the destination is still a high-value spot. The total daily cost of essentials in Cape Town is around $77.19. A three-course dinner with wine costs less than half what you'd spend in many U.S. cities. Travelers can also explore Table Mountain, sip wines in nearby vineyards and enjoy ocean views without breaking the bank.
Strolling through Shinjuku district of Tokyo, one of the cheapest places to travel in 2025.
Tokyo takes the third spot on the list—up a notch from 2024, when it ranked fourth. Japan's capital isn't usually thought of as 'cheap,' but the daily tourist essentials are $81.71, which is far less than what you'd spend in London or Paris. Plus, Japan's weaker yen and relatively low inflation add to Tokyo's value-for-money—making it the best deal it's been in years.
Bali climbs to fourth on the list for 2025, with an average daily cost of about $86.28 in the beachfront town Kuta. Prices are up about 5% from last year, but Bali still delivers outstanding value—think low-cost sunset beach dinners and massages for under $15.
Delhi, India rounds out the top five. It jumped from 13th place in 2024 to fifth this year, thanks to a 10.7% drop in prices. The daily cost of essentials in Delhi is now about $89.68. Add in historical landmarks like the Red Fort and Humayun's Tomb, and you've got an affordable cultural powerhouse.
Notably, Hoi An, Vietnam—the cheapest destination in 2024—fell to seventh place on the list after local prices surged by over 40%. That said, it's still a great deal with daily expenses around $94.47.
In contrast to the bargain spots, the report also highlights the places where you'll pay the most. Topping the expensive list is New York City, where that cost of essential items averages roughly $216.53—nearly triple the cost in the Algarve.
Close behind are Honolulu, Hawaii at about $200.98 and Nice, France at $197.41. In fact, Nice's prices jumped 27% since last year, making it the priciest spot in Europe.
Overall, the 2025 Post Office report paints a good picture for budget-conscious travelers. While prices have crept up in many places, they've held steady—or even dropped—in nearly half of the destinations surveyed. That means there are still great deals to be found, if you consider destinations where the local currency is weak and tourist costs are down.
Punta Cana, Dominican Republic is one of the best value destinations to travel in 2025.
One great-value spot that U.S. travelers will appreciate is Punta Cana in the Dominican Republic, which saw prices fall by more than 26%. It's the only Caribbean destination to crack the top 20 this year.
The takeaway? Currency shifts and local inflation can reshape the travel landscape from year to year. But with the right intel—and a bit of flexibility—you can still plan an unforgettable getaway that doesn't blow your budget.
Read on for the list of 15 most affordable places to travel in 2025, based on the U.K. Post Office 2025 report. You can download the full report here, which includes all the stats and more of the cheapest places to travel in 2025.
A view of Twelve Apostles mountain near Cape Town, South Africa, one of the cheapest places to travel in 2025.