A new study highlights sharp contrasts in travel prices for 2025, with Iceland identified as the most expensive destination and Thailand standing out as a budget-friendly option for global visitors. The findings show how currency shifts and inflation shape vacation budgeting for Thai travelers and Southeast Asian visitors.
Researchers from The Forex Complex, summarized for Travel + Leisure, analyzed 19 popular destinations by looking at daily spend on lodging, transport, and meals, along with local inflation and currency movements against the US dollar. In Iceland, 5.5% inflation has driven up prices for hotels, food, and transportation, making trips more costly for inbound travelers even before airfare.
A study spokesperson explained that currency fluctuations can change travel costs even when local prices stay steady. Thai and Asian travelers should monitor exchange rates, as shifts can alter summer vacation budgets more than expected. The baht’s performance, in conjunction with global monetary trends, influences both inbound tourism to Thailand and Thai outbound plans.
Australia ranks second in cost, with an average daily spend near $280 despite inflation running at about 2.4%. Mexico comes in third, driven by a 6.4% rise in the peso against the dollar, offsetting relatively lower local prices. Classic European destinations like the United Kingdom, Germany, and Italy remain pricey for visitors, though favorable exchange rates have eased some costs.
The study uses three core factors: daily tourism spend in USD, local inflation, and currency performance over the past year. This framework helps Thai travelers and budget-conscious visitors plan smarter.
Thailand, by contrast, emerges as the most affordable destination in the study, with average daily spending around $82. The baht’s relative weakness contributes to strong value, especially for long stays. Indonesia also ranks as an affordable option at roughly $70 per day, though its inflation sits slightly higher at around 2%.
For Thailand’s tourism sector, the message is clear: affordability strengthens competitiveness even as other destinations tighten with higher prices or inflation. This value-centric image supports Thailand’s appeal to Western visitors seeking cost-effective, high-quality experiences, as well as regional travelers drawn to diverse attractions—from Bangkok’s nightlife and markets to island getaways and northern cultural sites.
Industry voices underscore the importance of maintaining value without compromising service. A senior executive from Thailand’s Tourism Authority stresses that delivering consistent value remains central to the national brand. Analysts and travel influencers highlight Thailand’s broad range of experiences—from street cuisine and markets to premium wellness retreats and eco-tourism—at prices that resonate with budget-conscious travelers.
Experts also caution about currency volatility. A financial analyst notes that a weaker baht can boost inbound tourism but may raise the cost of international travel for Thais planning trips to Europe, North America, or Oceania. Keeping an eye on FX trends can help travelers set realistic expectations and optimize budgets.
Thailand’s reputation as a cost-effective destination remains a key strength. The country’s night markets, street food, and accessible beach getaways continue to attract diverse audiences, alongside premium wellness and cultural experiences that fit various budgets.
Looking ahead, global travel costs may continue to diverge as inflation shifts and currencies move. The takeaway for Thai travelers: plan with currency trends in mind, compare value across regions, and consider flexible itineraries that balance cost with rewarding experiences. For inbound tourism, continuing to emphasize affordability and diverse offerings will help Thailand maintain its competitive edge as the global landscape evolves.
For readers seeking deeper insights, the full research ranking and methodology are discussed in the original Travel + Leisure article.