Valparaiso

Valparaíso is a dream for budget travelers who appreciate character over comfort. The city’s vibe is gritty, artistic, and deeply social. For backpackers, the current summer peak in February means lively nights in the hills. You can find highly-rated hostels like those on Cerro Alegre or Cerro Concepción that offer communal dinners and guided graffiti walks. Street food is your best friend here; a single 'completo' (Chilean hot dog) or a massive 'chorrillana' shared with friends can keep costs extremely low. Most of the city's charm is free—simply wandering the 'ascensores' (funiculars) and endless staircases provides days of entertainment. To save money, shop at the local markets near the Muelle Prat for fresh produce. The social scene is centered around small 'picadas' (local eateries) and craft beer bars where travelers and students mingle. A daily budget of $32 covers a dorm bed, two local meals, and a few funicular rides, provided you stick to the hills and avoid the high-end seafood spots by the water.