Peru
Don’t be misled by the prices at Machu Picchu; Peru is really a very affordable travel destination. I lived in the Ancash region, just north of Lima, for almost four months last fall. A typical three-course lunch was as low as $2 in the town of Huaraz. Hostels throughout the country are budget-friendly as well. A typical bed in a dorm room cost $8 to $10, which usually included a simple breakfast of juice, bread, and fruit. I also found public transportation to be affordable, although airfare within the country is expensive. For example, a bus from Cusco to Lima cost me $37, while the cheapest round trip plane ticket I found was $160.
