20 Cheapest Countries To Fly To
In this piece we will look at the 20 Cheapest Countries To Fly To, and in case you want to skip our detailed analysis of the tourism industry and its recovery from the COVID-19 pandemic, you can go directly to 5 Cheapest Countries To Fly To.
The travel industry has shown resilience in overcoming the challenges brought on by the pandemic. It has been almost four years since the pandemic began in March 2020, resulting in travel restrictions and a decline in consumer interest in travel. However, experts predict that the industry will fully recover by 2024.
In 2023, international travel experienced a significant uptick, with international arrivals reaching 88% of pre-pandemic levels by the end of the year, according to data from the UN World Tourism Organization (UNWTO). World Travel and Tourism Council (WTTC) reported that international arrivals surpassed 2022 levels in all regions. This positive trend is expected to continue into 2024, with several regions surpassing 2019 levels by the end of the year.
The increase in international arrivals to an estimated 1.3 billion reflects pent-up demand, improved air connectivity, and a stronger recovery in Asian markets. The Middle East, on the other hand, saw the most significant relative recovery, surpassing pre-pandemic levels by 22%. Europe, the most visited region globally, achieved 94% of 2019 levels, driven by regional demand and travel from the United States. Moreover, Africa recovered 96% of pre-pandemic visitors, while the Americas reached 90%. In Asia and the Pacific, regions like South Asia and North-East Asia saw varying levels of recovery, with South Asia leading at 87% of 2019 levels.
In 2023, preliminary estimates show that international tourism receipts amounted to USD 1.4 trillion, which is approximately 93% of the USD 1.5 trillion earned by destinations in 2019. Furthermore, the total export revenues from tourism, including passenger transport, were estimated at USD 1.6 trillion in 2023, representing nearly 95% of the USD 1.7 trillion recorded in 2019. Additionally, preliminary estimates indicate that the economic contribution of tourism, as measured by tourism direct gross domestic product (TDGDP), reached USD 3.3 trillion in 2023, accounting for 3% of global GDP. This signals a recovery of pre-pandemic TDGDP driven by robust domestic and international tourism activities.
In looking ahead to 2024, analysts predict that technology will play a vital role in driving innovation and transformation within the travel and tourism sector. They emphasize the significance of digital transformation, artificial intelligence (AI), and data analytics in reshaping the industry. Moreover, the widespread adoption of virtual reality (VR) and augmented reality (AR) is anticipated to elevate travel experiences by allowing travellers to virtually visit destinations from the comfort of their homes before confirming their travel arrangements.
A global study, which surveyed 27,000 travellers in 33 countries, including the UK, Italy, Germany, Spain, the US, and Latin America, reveals that travellers are navigating a balance between budget constraints and luxury desires. Some interesting findings include that 47% are considering taking their children out of school for off-peak travel, 46% are planning to reduce tips, and 50% intend to pay for trips using credit cards to manage costs. Despite the focus on budget-conscious decisions in 2024, travellers are still finding ways to indulge in luxury without breaking the bank. For example, 34% are open to borrowing designer clothes and accessories from family or friends for their trips.
On the other hand, the luxury travel sector is experiencing a 14% decline compared to previous forecasts, possibly indicating a shift towards more meaningful experiences and a re-evaluation of spending habits. 2024 introduces a new trend among European travellers, with a focus on shorter trips lasting 3-4 nights but with a higher daily budget. This shift suggests a preference for quality over quantity, with travellers opting for luxurious, shorter stays rather than longer trips on a stretched budget. This trend towards "micro-cations" emphasizes creating memorable and valuable experiences in a condensed timeframe. Moreover, Skiplagging, or commonly referred to as "hidden city flights," has gained popularity as a money-saving tactic for air travelers in recent times.
Undeniably, there seems to be seen a noticeable trend in the market, as consumers increasingly seek affordable options for their travel arrangements.
Now before we delve into our list of 20 Cheapest Countries To Fly To, let us also first analyze what’s happening around the key stakeholders of the travel industry. Namely, we are going to discuss Marriott International, Inc. (NASDAQGS:MAR), Airbnb, Inc. (NASDAQGS:ABNB) and Booking Holdings Inc. (NASDAQGS:BKNG).
Marriott International, Inc. (NASDAQGS:MAR)
Marriott International Inc (NASDAQ: MAR), a company with a diverse portfolio of approximately 30 brands and 1.6 million rooms spanning luxury, full service, and limited-service tiers, has shown impressive growth and financial stability. Its key brands, such as Marriott, Courtyard, and Sheraton, along with newer lifestyle brands like Autograph and Moxy, contribute to its success.
For the quarter ending 31 December 2023, the company reported a 7.2% increase in worldwide Revenue per Available Room (RevPAR), with a significant 17.4% rise in international markets and a 3.3% increase in the U.S. & Canada. Adjusted net income for the quarter rose to $1,055 million from $622 million the previous year, while adjusted EBITDA reached $1,197 million. Despite the addition of nearly 81,300 rooms globally and strong growth internationally, Marriott faces the ongoing challenge of sustaining growth in a competitive and evolving travel and leisure industry.
Airbnb, Inc. (NASDAQGS:ABNB)
Airbnb, Inc. (NASDAQGS:ABNB) operates an online marketplace for short- and long-term homestays and experiences. In the fourth quarter ending 31 Decemeber 2023, the company recorded a gross booking value of $15.5 billion. The number of nights and experiences booked totalled 98.8 million, marking a 12% increase from the previous year and surpassing analysts' expectations. Airbnb noted a strong demand from guests, especially first-time users. Despite some volatility caused by external events, such as the Israel-Hamas conflict in October, Airbnb's business gained momentum throughout the quarter.
For the fourth quarter of 2023, Airbnb's revenue increased by 17% from $1.9 billion compared to the same period the previous year. The company reported adjusted earnings of $738 million, exceeding analysts' expectations of $645 million. However, Airbnb faced a net loss of $349 million or 55 cents per share, contrasting with a net income of $319 million or 48 cents per share in the previous year, primarily due to lodging tax reserves and nonrecurring tax withholding expenses totaling approximately $1 billion.
Booking Holdings Inc. (NASDAQGS:BKNG)
Booking Holdings Inc. (NASDAQGS:BKNG) is a travel technology company headquartered in Norwalk, Connecticut. The company, incorporated under the Delaware General Corporation Law, owns and manages various travel fare aggregators and metasearch engines, including popular platforms like Booking.com, Priceline.com, Agoda.com, Kayak.com, Cheapflights, Rentalcars.com, Momondo, and OpenTable. Operating in approximately 40 languages and across 200 countries, Booking Holdings Inc. serves a global audience.
During the third quarter of 2023 ending 30 September 2023, customers reserved 276 million room nights, showing a noteworthy 15% year-over-year increase. Gross bookings amounted to $40 billion, marking a 24% year-over-year increase. These figures set new quarterly records, surpassing the expectations and indicating sustained high demand for travel. In the third quarter of 2023, the international component of total room nights exceeded 50%, up from approximately 45% in the same period of 2022. Travelers are making bookings further in advance, suggesting that the trend of prioritizing travel over other discretionary expenses will likely continue into the coming year.
Photo by Ovidiu Gruescu on Unsplash
Methodology
To shortlist the 20 Cheapest Countries To Fly To, we first extensively researched across various sources which listed Cheapest Countries To Fly To, and based on a consensus approach, we shortlisted more than 25 countries which appeared most frequently across all sources. Furthermore, we also incorporated the recent inflation data across the selected countries and further filtered out the countries, leaving ourselves to countries with lowest inflation rates.
Then we finally referred to the latest Travel and Tourism Development Index by the World Economic Forum. This Index, which comprises more than 110 countries, has been published on a bi-annual basis for more than a decade by the World Economic Forum. The ‘Price Competitiveness Sub Index’ takes into account various factors such as airfare ticket taxes, airport charges, and the impact of fuel prices on travel expenses. The countries are graded on a scale of 0 to 7, with 7 indicating the lowest cost of traveling. With this let us now look at our list of 20 Cheapest Countries To Fly To.
By the way, Insider Monkey is an investing website that tracks the movements of corporate insiders and hedge funds. By using a similar consensus approach, we identify the best stock picks of more than 900 hedge funds investing in US stocks. The top 10 consensus stock picks of hedge funds outperformed the S&P 500 Index by more than 140 percentage points over the last 10 years (see the details here). Whether you are a beginner investor or professional one looking for the best stocks to buy, you can benefit from the wisdom of hedge funds and corporate insiders.
20 Cheapest Countries To Fly To
20. Montenegro
2021 Price Competitiveness Sub Index: 5.04
Montenegro is last on our list of Cheapest Countries To Fly To, offering budget travelers a daily expense range of $40 to $60 for accommodation, meals, transportation, and activities. Mid-range travelers can expect to spend $80 to $120 per day, affording greater comfort and flexibility. Prices may vary according to personal preferences and travel style. Montenegro boasts captivating landscapes, including majestic mountains and the Adriatic Sea, while coastal towns like Budva and Kotor feature historic charm with cobblestone streets and medieval architecture. Durmitor National Park provides a hiking paradise with rugged peaks, deep canyons, and serene glacial lakes. The country's culinary scene offers a blend of Mediterranean and Balkan flavors to delight visitors.
19. Mexico
2021 Price Competitiveness Sub Index: 5.06
From Tulum to Baja California, Mexico offers a wide range of adventures to explore. This diverse country is known for its rich culture, stunning natural beauty, and delectable cuisine that is among the best in the world. While Mexico may have a concerning safety reputation, most violence occurs in specific areas, and there are many safe and enjoyable destinations throughout the country.
The good news is that traveling in Mexico can be affordable. For under $20, you can visit multiple breathtaking cenotes, such as the one shown in the picture. For less than $3, you can indulge in tasty street foods like tacos (who doesn't love them?), quesadillas, and tortillas. Additionally, the country's white sand beaches are largely cost-free, and the warmth and hospitality of the locals are truly invaluable.
18. Morocco
2021 Price Competitiveness Sub Index: 5.27
In comparison to other African countries, Morocco is regarded as a budget-friendly destination. While it may not offer the same low prices as Southeast Asia, Morocco is still considered one of the more economical options for travelers, provided they steer clear of tourist traps. For instance, Marrakech stands out as a vibrant and bustling city within Morocco. Many visitors come here to explore the expansive Medina and arrange excursions to the Sahara Desert or the Atlas Mountains. Exploring Marrakech can be quite cost-effective if you opt for meals at local eateries instead of tourist-oriented restaurants around Jemaa El Fnaa, the main tourist square. Accommodations in hostels throughout Morocco typically range from $8 to $10, and tours are also reasonably priced.
17. Nicaragua
2021 Price Competitiveness Sub Index: 5.38
Located between the Pacific Ocean and the Caribbean Sea, Nicaragua is renowned for its diverse landscape of lakes, volcanoes, and beaches. The country's affordability as a travel destination, even in upscale areas, makes it an attractive choice for visitors. With its rich biodiversity and historic architecture, Nicaragua is becoming increasingly popular among expats seeking value, compared to neighboring countries and hence, stands at the 17th position in our list of Cheapest Countries To Fly To.
16. China
2021 Price Competitiveness Sub Index: 5.45
Placed 16th on our list of Cheapest Countries To Fly To is China, which stands out as a truly unique destination with its distinct food, language, culture, history, and biodiversity. Despite misconceptions about it being primarily urban, China offers breathtaking natural landscapes and diverse ecosystems, from the reclaimed Great Wall to the vibrant waterfalls of Jiuzhaigou and the surreal beauty of Zhangjiajie and Huashan. Beyond its megacities, China boasts numerous national parks and natural wonders, making it a versatile and captivating destination for exploration.
15. South Africa
2021 Price Competitiveness Sub Index: 5.46
Travelers using USD or Euro will benefit from the favorable exchange rate in South Africa, where 1 South African Rand equals 0.05 USD. Accommodation options, known as "backpackers," are affordable and set in picturesque locations with unique personalities, helping the country secure a place in our list of Cheapest Countries To Fly To. Cooking your own meals can help save money, as dining out in South Africa can be costly. While public transportation is limited outside of major cities, renting a car and sharing costs with fellow travelers is a cost-effective way to explore the country.
14. Thailand
2021 Price Competitiveness Sub Index: 5.55
In northern Thailand, travelers can easily find budget-friendly accommodation options. Costs increase as one moves south, making it ideal to stay in the north for those on a limited budget or time constraints. Basic dorms in popular areas like Chiang Mai and Pai are available for under $7. Furthermore, opting for street food offers both cost savings and a more authentic culinary experience. Lastly, affordable activities, such as visiting the White Temple or organizing day trips with fellow travelers, can be enjoyed without spending a lot of money.
13. Peru
2021 Price Competitiveness Sub Index: 5.60
Next on our list of Cheapest Countries To Fly To is Peru, renowned for adventure and its culinary scene, boasting four spots on The World’s 50 Best Restaurants list, with one holding the top position. The country's highlight, Machu Picchu, is a New Seven Wonder of the World. Travelers should consider the seasonal differences in the Southern Hemisphere when planning their visit, with February being the warmest month and August the coldest. Packing accordingly is essential for an enjoyable trip. Political and social unrest that erupted in the country in 2023 is now over, and the country is yet again, safe for tourists to travel.
12. Bulgaria
2021 Price Competitiveness Sub Index: 5.66
Bulgaria, 12th country on our list of Cheapest Countries To Fly To, boasts an abundance of mountains, including Rila, Pirin, the Balkan range, and the Rhodopes, all offering diverse landscapes for winter mountain activities. Visitors can enjoy ski touring, snowshoeing, and winter mountaineering in the snowy summits and dramatic ridges. The country also offers a rich cultural heritage with numerous historical sites and traditions woven into everyday life. Local cuisine features fresh, quality ingredients, including vegetables, dairy products, and mild spices, with pork, chicken, fish, veal, and lamb dishes being popular choices. Additionally, Bulgaria provides vibrant nightlife, entertainment, and a pristine coastline with beautiful sandy beaches and clear seas, just a short internal flight or a 5-6 hour road trip from Sofia.
11. Brazil
2021 Price Competitiveness Sub Index: 5.73
Many tourists in Brazil choose to visit Rio de Janeiro and other urban areas with well-established hospitality industries. Salvador and Bahia are popular destinations, and more visitors are exploring the coastal areas of the Northeast. Eco-tourism is gaining traction in the Amazon region, while the beaches of Santa Catarina attract many Argentine tourists in the South. The Igua?u Falls draw over a million tourists annually, connected to urban centers by highways and air routes. National parks, historic sites, and pristine beaches are also becoming increasingly popular among travelers. Several cities and regions in Brazil have been designated as World Heritage sites, recognizing their cultural and historical significance.
10. Philippines
2021 Price Competitiveness Sub Index: 5.76
The Philippines can be a somewhat expensive and time-consuming destination to navigate, with fewer hostel choices compared to other Southeast Asian countries. Despite these challenges, budget-conscious travelers can keep costs low by traveling during off-peak seasons, booking flights in advance, and confining their itinerary to 1-2 regions, and this way the country makes it to our list of Cheapest Countries To Fly To.
The country offers stunning islands, affordable group island tours, and captivating dive sites, providing unique experiences that may be more costly elsewhere. In this regard, spending money in the Philippines can be rewarding for travelers seeking value and memorable experiences.
9. India
2021 Price Competitiveness Sub Index: 5.83
India is known for its affordability, particularly if travelers are willing to negotiate prices and seek out bargains. In the northern regions, budget accommodations may be basic, with rooms typically starting around $3 and traditional bucket showers providing heated water. Southern India, with its beautiful beaches, offers a better chance of finding budget-friendly lodging. To travel cost-effectively in India, arranging accommodations and activities independently without using agents or online booking platforms is recommended. By personally approaching local guesthouses, restaurants, and tour providers, visitors can often secure services at lower prices compared to online rates.
8. Namibia
2021 Price Competitiveness Sub Index: 5.85
Namibia boasts some of the world's most breathtaking landscapes, including the stunning Sossusvlei, the captivating Deadvlei, and the expansive Fish River Canyon, among others. While Namibia may not initially appear as a budget-friendly destination, with most accommodations geared toward luxury travelers and limited transportation options in such a vast country, there are cost-saving strategies that can make a visit more affordable.
Opting to camp instead of staying in upscale lodges can significantly reduce expenses. Luxury lodges typically charge between $50 to $200 per night, whereas camping at their campsites costs around $8 to $10 per night. Government campsites may charge slightly more, ranging from $15 to $18 per night. Sharing a rented 4x4 vehicle with fellow travelers can help split transportation costs. Making use of communal kitchens at accommodations for self-catering can also save money. Additionally, entrance fees to attractions in Namibia are generally budget-friendly.
7. Cambodia
2021 Price Competitiveness Sub Index: 5.94
Southeast Asia is renowned for its affordability, stunning scenery, rich history, vibrant cuisine, impressive religious architecture, and breathtaking natural environments. Among Southeast Asian countries, Cambodia stands out as one of the most budget-friendly destinations, and is therefore makes a place on our list of Cheapest Countries To Fly To. Key attractions in Cambodia include exploring the awe-inspiring ancient Khmer temples in Siem Reap and visiting the museums and palaces in the capital city of Phnom Penh. Accommodation options in Cambodia can be as inexpensive as $4 per night at hostels, and hearty meals can be enjoyed for as little as $1.
6. Indonesia
2021 Price Competitiveness Sub Index: 5.98
When considering Indonesia, the 6th country on our list of Cheapest Countries To Fly To, the cost of travel largely depends on transportation expenses. Inter-city travel and private boat rides between islands can be time-consuming and expensive. To save money, focusing on a particular region for exploration is recommended. Local transportation is a cost-effective way to travel extensively. Food and beverages are affordably priced and delicious throughout the country. Engaging in activities like scooter rides, hiking, waterfall visits, or beach lounging is budget friendly. Hostels, particularly in locations such as the Gili Islands, offer ample and economical lodging options.
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Disclosure: None. 20 Cheapest Countries To Fly To is originally published on Insider Monkey.