It’s that time of year again. As we conclude a bumper-packed 2025, thoughts trend towards the next journey around the sun. Backpacking is firmly on (and off) the map in 2026, with new information bringing insight on the best destinations to go Into The Wild or just take A Walk in the Woods.
Movie puns aside, the Australian branch of Compare the Market has conducted a study on the best backpacker cities right now. Data such as average hostel numbers and cost, free attractions, and a safety score were the deciding factors.
What resulted is not shocking, yet highly useful. Let’s just say that Southeastern Asia, where there is a clear economic advantage, rings the spoiler alert bell here. Nevertheless, which of its many cities hit the podium of backpacker glory?
Bali, Indonesia
Okay, Bali is not technically a city. Yet, Bali is where the best backpacking exists, mainly due to its incredible 466 free attractions and proximity to low-cost hostels. The Indonesian island is a literal young person’s playground, scattered with far-flung gap year students, surf nomads, and expatriate transplants.
Of course, not all is rosy on the Island of the Gods: the past year has seen a government crackdown on entitled tourist behavior. A series of fines and penalties now await anyone thinking of dressing or acting disrespectfully at sacred monuments.
Chiang Mai, Thailand
Next, we head into Northern Thailand to one of the more celebrated cities on the Southeast Asian circuit: Chiang Mai. Millions flock there, especially during the dry season between November and February, for its cool mountain air and excellent value.
There are an apparent 179 free attractions in this ancient city. Lonely Planet shares a good collection of activities, among which are exploring Chiang Mai’s many old-city ruins, Buddhist temples, and elegant parks. For nature lovers, the city is never far from day hikes concluding with a free dunk in a waterfall or two. What’s more, Chiang Mai is the second-safest city in the entire study, making it appealing to solo and female travelers.
Chengdu, China
China can compete with Southeast Asia as a backpacking hub. Chengdu, the main city in Sichuan Province, sits at the foot of the Tibetan Himalayas and is more connected to nature than other provinces. Here, epic national parks show why Sichuan Province might be the country’s true great outdoors. Chengdu is also home to giant pandas in their reservation, an easier access option than seeing those elusive wild ones.
What’s more, the city comes with millennia of food history, where much of China’s most famous cuisine originates. Be warned: it can get spicy. To illustrate this point, a Roaming Renegades article describes a Sichuan hotpot so lethal it became an almost hallucinatory experience.
Siem Reap, Cambodia
This corner of the underrated Cambodia is an obvious choice for its economic value. Siem Reap remains the cheapest place to eat and the second-cheapest for its nightly hostel prices. For some, the most important winning statistic might be the average $1 domestic beer price, which puts Siem Reap into hot contention.
If that doesn’t do it for you, perhaps a visit to the UNESCO Heritage site Angkor Wat will. This formidable archaeological site formed the center of the Khmer Kingdom from the 9th to the 15th centuries. Spread over roughly 160 square miles, this vast network of temples and villages provides a maze of backpacker delight. Just be sure to leave that low-cost Beer Lao for later.
Phuket, Thailand
Nobody can be surprised at Phuket’s inclusion on the winning list: Thailand’s most famous beach destination is hard to topple. While it has a modest 76 hostels (paling in comparison to Bali’s 265 registered establishments), Phuket scores high on free attractions, coming second to its Indonesian arch-nemesis.
For backpackers looking for more earnest surroundings, Phuket needn’t be only Full-Moon parties and Ibiza-style resorts. Julia D’Orazio of the Australian site, Traveller, did a feature on the island’s more relaxed and totally elegant historic district. “If only I had known a different side to Phuket was just a tuk-tuk ride away,” she writes with a presumable sigh.
Ho Chi Minh City, Vietnam
Considered “Saigon” to the locals, the southernmost major city in Vietnam sparkles with ambition, hospitality, and color. I should know: it was my home for four wonderful years, and part of my heart remains there still. Of course, I met many backpackers passing through the “Backpacker District” on gap years and other assorted adventures. However, this city has many hidden pockets of pure cultural bliss: not least its markets, mom-and-pop restaurants, and many Buddhist temples.
Ho Chi Minh City has a human soundtrack like no other, much in part to the main source of transit. The scooter is a recurrent, audible motif everywhere you step. Most visitors can marvel at the torrent of whining motorbikes flanking their every side from a cab; better still, hiring a $10 rental and attempting the rush-hour deluge oneself. The YouTube channel, This Amazing New Life, captures how it looks from above; be warned: the best method is just to keep moving.
Luang Prabang, Laos
Making up the triumvirate of the Indochina entries is Laos with Luang Prabang, which scores very badly on its hostel front. While they are well-priced, competition is high: only 16 hostels are registered, putting this city at the bottom of the hostel access criterion.
Yet, it beats several rivals for affordability. Dining, beer, coffee, and public transport are all very well priced. Luang Prabang makes a fine stop for any backpacker taking in the region, especially those on a budget. Backpacking expert Beyond Babeesh shares some great budget-saving tips for those trying Laos for the first time.
Cusco, Peru
We have finally left Asia, hopping the Pacific to Peru for yet another UNESCO World Heritage site: the ancient city of Cusco. The former Inca Kingdom capital lives long in any backpacker’s memory, not least for being so high: over 11,000 feet. Therefore, an extended break here is advisable before taking on any of its nearby world-class hikes.
Backpacking insight for Cusco comes from the aptly named Backpacker Advice website, which champions the South American wonder with aplomb. Visitors can expect “Inca ruins, Spanish colonial architecture, a vibrant backpacker scene, and access to some of the best trekking in the world.”
Ben is a lifestyle, travel, news, and features writer with bylines for dozens of publications, and he has bylines across many online platforms.
Raised in England and with a career background in international education, he now lives in Southern Spain with his wife and son. Ben has lived on four continents, including Africa, Asia, and North America, and he has worked diverse jobs, ranging from traveling film projectionist to landscape gardener.
He offers a unique, well-traveled perspective on life, with several specialties related to his travels, namely, international living and culture. Ben loves writing about travel, food, news, and trending cultural topics, among many others.
When he isn't writing, you will find him hiking with his family or on the nearest golf course looking for his golf ball.
