Argentina and Chile Without Wasting Money
The bus from Puerto Montt to Puerto Natales takes 34 hours and costs $80. That is the Carraterra Austral, most of it gravel, and it tells you something about transport costs in this part of South America before you have even paid for a bed.
Travelers heading to Argentina and Chile expecting Bolivia or Paraguay prices will be disappointed. Those two can match Southeast Asian costs. Colombia and Peru come in slightly above Thailand or Vietnam but remain affordable by global standards. Chile and Argentina sit noticeably higher than most of Southeast Asia, and in Argentina’s case the gap has widened.
The Argentina Problem
Argentina is debatable. It has had crazy inflation for years, and it got worse. Back in 2014 the rate was already wild enough that visitors had to learn their way around the blue dollar. President Javier Milei’s economic reforms have since strengthened the peso, which pushed prices up and caused a 25% drop in tourism arrivals in the first half of 2025. Some travelers now report prices exceeding those in Europe. That is a real shift for a country that spent a decade as the cheap option on the continent.
The northwest is where the math still works. In places like Jujuy, Salta, or Tucuman you get European-like levels of development with prices well below those of Spain. Private rooms start around $20 in these smaller cities. That is a private room, not a dorm bed. For anyone building a route around value rather than highlights, this is the region to weight your time toward.
Chile and the Daily Budget
Chile is not cheap, but a full day of travel does not have to break you. Expect $29 to $65 for an entire 24 hours of movement. That range is wide because it depends on distance and how far south you are going.
Renting a bicycle is one of the better-value moves in Chile. It costs about $5, and the quality is usually not the best, so check the bike before you commit. For comparison, the same rental runs about 1 euro in Vienna, which converts to roughly $1.08. Chile is five times that, but still cheap enough to make a day of it. Bring your own bike if you are on a longer trip and the logistics allow it.
The Three-Times Rule
There is a rough method for predicting daily spend in any city. Multiply your accommodation cost by three. A backpacker paying 15 euros for a hostel in Lisbon, which is about $16.20, can expect to spend roughly 45 euros a day, or about $48.60. The same logic applies here. If your bed in Salta costs $20, budget around $60 for the day and you will not be far off for a comfortable backpacker style. Some travelers plan on $45 a day across Colombia, Ecuador, Peru, Chile and Bolivia, staying longest in Bolivia and Peru because those are the cheapest. That number is achievable in the north of Argentina and in Bolivia. It is tight in Chile and tighter still in Patagonia.
Eating and Paying
Restaurant food is expensive. In Uruguay, a chivito, the classic steak sandwich, goes for about $10. A midrange restaurant with a drink runs $25. A top-end place with wine is double that, so $50. Argentina has the same problem, though eating a steak there remains one of the things you do regardless of what it costs.
Currency matters more than usual. As of November 2024, the exchange rate fluctuates around 17 to 20 pesos per US dollar and 18 to 22 pesos per euro. These rates vary daily and differ between banks, exchange houses, and ATMs. Mexico is a separate warning: last year you could often get 20 pesos for a dollar at peak, and now it is nearing 18. Western currencies do not stretch the way they did.
For trips longer than three months, a long-duration insurance policy is worth arranging before you leave. Standard policies are not built for a multi-month overland route.
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