When I was planning my first Southeast Asia trip, there were so many blogs and TikTok’s that gave me a false sense of security. The promise being able to live on “£10 a day.” And sure — I guess you can if you’re extremely frugal. But after a few months on the road through Thailand, Laos, Vietnam, and Cambodia (aka the Banana Pancake Trail), I found it a lot more expensive than expected.

Especially when you’re travelling during peak season. I learned this the hard way spending Christmas and New Year on the islands in Southern Thailand.

So if you’re prepping your first backpacking trip in 2025, here’s a realistic breakdown of what to budget, what surprised me, and tips to help you spend smart without missing out.

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Average Backpacker Budget by Country

Let’s start with the basics. Here’s what you can expect to spend per day (including accommodation):

On my backpacking trip we set ourselves the budget of roughly £50 per day over 100 days of travelling. It’s safe to say that despite what we thought was a healthy budget we definitely exceeded this is quite a few places.

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Why My Trip Cost More Than I Planned

1. South Thailand Over Christmas & New Year

I spent the Christmas holidays hopping between Krabi, Koh Samui and Koh Tao. Dreamy, yes — but also pricey.
    •    Hostels normally £10-15? Try anywhere between £30 and £60.
    •    Ferries? More expensive and fully booked.
    •    NYE beach parties, tours, food, and drinks all had the seasonal markup.

Tip: If you’re travelling over the holidays, either:
    •    Book accommodation a month in advance at least (although we still struggled so I would recommend booking as early as you possibly can)
    •    Head north (Pai, Chiang Mai or to Vietnam as prices seemed to be a lot less there) to avoid inflated island costs
    •    Budget an extra £10–£15 per day

As we wanted to spend 3 days over Christmas in somewhere nice we ended up staying at a beach club on Koh Samui which cost £100 per night… not even including any other day to day living costs. This definitely ruined our budget.

2. Paying for Convenience

It adds up fast:
    •    Express buses and minivans
    •    Flights over sleeper trains
    •    AC private rooms when hostels felt too rough
    •    Grab taxis because I didn’t want to haggle

It was all worth it sometimes, but I didn’t account for these “little extras” in my daily budget.

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My Actual Spend Per Country

Here’s what I really spent (approx) as a backpacker with the occasional splurge:

£6405 !!!

This is inclusive of literally everything; my beauty treatments, any clothing purchases, big splurges, our flights out there and our initial accommodation that we had pre-booked. We took out £5,500 with us as in travel spending so when taking off the cost of the flight from the UK to Thailand, plus the hotel we had already booked in Bangkok, by that math I don’t think we were too far over our in travel spending budget.

However, whilst I know it definitely can be done cheaper, I was shocked at how much harder it actually was compared to what people had told me. We did still have to skip out on things and choose budget options, however we did also have a good mix of comfort and convenience too.

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Biggest Backpacking Money-Saving Tips

If I were doing it all over again, here’s what I’d stick to:
    •    Travel in shoulder season (Oct–Nov or Feb–April after burning season)
    •    Use apps like 12Go Asia* and Trip.com* for transport and Skyscanner* to keep an eye on prices for your outbound and inbound flights to and from your home country
    •    Book accommodation on Agoda* or Hostelworld*
    •    Eat street food and go for the busiest stalls
    •    Use a Wise or Revolut card to avoid ATM/FX fees
    •    Join free walking tours or hostel events for social travel without spending loads

Affiliate links marked with an asterisk may earn me a small commission at no extra cost to you — and I only recommend what I genuinely trust!

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Want to Plan Your Trip Without the Stress?

If you’re a first-time backpacker, I created the Newbie Backpacker Guide to the Banana Pancake Trail to help you avoid the mistakes I made (like arriving in Thailand during peak season with no clue and nowhere booked).

Inside, you’ll find:
    •    Pre-made itineraries for Thailand, Laos, Vietnam & Cambodia
    •    My go-to apps, budget tips, and SIM card hacks
    •    Route ideas + itineraries and where to stay in each place
    •    A full Southeast Asia packing list & printable planner

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So, Is Southeast Asia Still Budget-Friendly?

Yes — but only if you go in with realistic expectations. Which was my downfall.

If you’re strategic about when you go, where you stay, and how you travel, Southeast Asia is still one of the most budget-friendly regions in the world. But don’t let the £10-a-day myth catch you off guard.

Do your research, book early for peak season, and make a little room in your budget for comfort and flexibility. You’ll thank yourself later.

PS: If you found this helpful, check out The Newbie Backpacker Guide — and DM me if you have any questions about your route, budget, or what to expect. I genuinely love helping first-time travellers!

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