Japan, Thailand and Vietnam are emerging as top budget travel destinations in 2026. That’s due to market and travel factors such as lower than ever airfare, as well as cheap food, accommodation and travel in host countries.
More on why Japan, Thailand and Vietnam are top budget destinations this year and how you can make your dollar stretch:
Affordable and unique lodging options and extensive high-speed rail make Japan ideal for the budget conscious tourist.
The Canadian dollar advantage: Favorable exchange rates are making Japan more accessible to Canadians. Currently, $1 CAD converts to around 115 JPY.
“The Japanese economy has been dealing with delayed inflation from the pandemic, leading to a strong conversion rate for Canadian travellers,” writes gowaypro.
Low cost lodging: Stays in Tokyo and Osaka are now more affordable thanks to lodging options such as business hotels and capsule hotels.
For roughly 7,000 to 15,000 yen per night, business hotels offer “economical and no-frills accommodation to travelers,” writes Japan Guide. The rooms are small, but generally well-kept and include access to an attached bathroom.
Capsule hotels are a good option for stays of a single night and tend to be located in major transit hubs. Ideal for incredibly budget conscious travellers, these small sleeping pods cost roughly 3,000 to 5,000 yen per night.
Guests have access to shared bathrooms and other common spaces. While it is possible to book more than one night, many capsule hotels require guests to completely remove their items during the day.
Regional transit passes: Japan’s well-connected and affordable transit system makes getting around a breeze. Available to international visitors, the Japan Rail Pass grants unlimited travel for 7, 14 or 21 days on most shinkansen bullet trains
If you are sticking to a specific area, regional passes, such as the Kansai Thru Pass, could save you hundreds. These passes prevent continuous purchases of transit tickets, conveniently bundling your local travel costs.
Tropical beaches, vibrant food and cities, and green mountain jungles await travellers to Thailand.
If you’re on a budget, expect to spend between 800 to 1,500 THB (33.70 to 63.30 CAD) per day. “This includes hostel dorms, street food, local transportation, and free or low-cost activities,” writes Royal Thailand Tours.
Make Bangkok your base: You can find affordable accommodations, such as hostels, in the capital city. From there, book cheap domestic flights to island hotspots.
Flying from Bangkok to Phuket one-way can cost as little as 35 CAD. You can also bundle ferry and airline tickets with some carriers.
Explore north Thailand: The country is known for its tropical beaches, but the northern mountainous regions are incredible, too. And costs tend to be far lower than in the south.
Chiang Mai, largely considered Thailand’s cultural capital, is in the north. “With hundreds of temples, it’s the place to be for anyone keen on learning about the country’s rich history and Buddhist culture,” writes TRU Travels.
Street food strategy: Thailand is home to amazing street food that is recognized by the Michelin Guide. Check out this list of Thai street food businesses that have received a distinction from Michelin, including a coveted Michelin Star.
A very favorable exchange rate, and affordable domestic travel costs make Vietnam accessible to budget travellers. And you’ll eat some of the best cuisine in the world for a low price.
Growing infrastructure: Vietnam has just broken ground on an ambitious high speed rail project that will cut travel times by more than half between major cities.
Improved rail will make multi-city trips between Hanoi and Ho Chi Minh faster and cheaper than ever.
Local host stays: Consider a homestay in Sapa or Ninh Binh for low-cost cultural immersion. Your visit can help support local families.
“Cook, weave, and share stories with host families who set their own prices and benefit directly,” writes ETHOS Spirit.
Street food and more: Like Thailand, Vietnam offers great street food for cheap. Enjoy classic dishes like pho and banh mi for as little as 4 CAD or less.
It’s no secret that airfare is on the rise, due to fuel surcharges and overall increasing costs. But travel is easier than ever, with lower-cost flights often available from Toronto to Tokyo, and Vancouver to Bangkok.
You can score cheap airfare by following these tips:
Travel insurance with emergency medical and trip cancellation benefits can be of value for your next trip to Asia.
You should know that your provincial or territorial health insurance plan may not fully protect you if you experience a medical emergency outside your home province or territory.
An Allianz Global Assistance travel insurance plan reimburses certain non-refundable expenses if your trip is cancelled or interrupted midway, due to a covered reason.
In many instances, airfare and hotel reservations may be non-refundable. If you have to cancel your trip due to unavoidable emergencies such as a diagnosed illness, or airline strike, travel insurance may save you thousands.
Get a travel insurance quote today to learn how we can help you travel with peace of mind.
Disclaimer: This article is intended for general informational purposes only and does not constitute legal, medical, financial, or other professional advice. Allianz Global Assistance is not responsible for the use of external websites or the content or accuracy of external website information.
You should know that your provincial or territorial health insurance plan may not fully protect you if you experience a medical emergency while travelling outside of your home province or territory, let alone abroad.
An Allianz Global Assistance Travel Insurance plan with emergency medical benefits may help fill coverage gaps if you have a medical emergency during your trip.
We also offer trip cancellation benefits that reimburse certain non-refundable expenses if your trip is cancelled or interrupted midway due to a covered reason.
Get a quote travel insurance today to learn how we can help you travel with peace of mind.
This article is intended for general informational purposes only and does not constitute legal, medical, financial, or other professional advice. Allianz Global Assistance is not responsible for the use of external websites or applications, or the content or accuracy of external information or technologies.
