Chile is often seen as one of South America's most expensive destinations, but for the savvy backpacker, it offers an incredible landscape of extremes that can be conquered on a lean budget. By prioritizing intercity buses, choosing shared dorms, and feasting on empanadas and supermarket staples, you can experience everything from the driest desert on earth to snow-capped volcanoes without breaking the bank.
This 17-day itinerary follows the spine of the Andes, connecting the vibrant street art of Valparaiso with the lunar landscapes of San Pedro de Atacama and the crisp alpine air of the Lake District. Prepare for long bus rides, breathtaking free hikes, and the true essence of South American hostel culture.
The Itinerary
Day 1: Santiago, Chile - Arrival & City Center
Plaza de Armas
Start your journey at the heart of the city. Visit the Metropolitan Cathedral for free and watch the local chess players under the palms. This is the best spot for people-watching and soaking in the capital's energy.
Mercado Central
Wander through the historic fish market. While the internal restaurants are pricey, the peripheral stalls offer affordable 'Paila Marina' (seafood stew) or a classic 'Completo' (Chilean hot dog).
Museum of Memory and Human Rights
Take the metro to Quinta Normal. This powerful museum is free to enter and offers a deep, moving insight into Chile's political history under the Pinochet regime.
Santa Lucia Hill
Climb this ornate hill in the center of the city for a panoramic view of the Andes. It is free and offers the best photo opportunities of the Santiago skyline at sunset.
Day 2: Santiago, Chile - Cultural Hubs
Cerro San Cristobal
Skip the expensive funicular and hike up the trail to the Virgin Mary statue. The walk takes about 45 minutes and provides the absolute best view of the city and the mountain range.
Barrio Bellavista
Explore this bohemian neighborhood known for its colorful murals. Grab a cheap lunch at a 'picada' (local diner) where the 'Menu del Dia' usually costs around $5-7 USD.
La Chascona Exterior
Visit the exterior of Pablo Neruda’s house. While the tour costs money, the surrounding streets are a free gallery of street art and unique architecture.
Lastarria District
A trendy area perfect for a nightly walk. Street performers often play music here, creating a great atmosphere for budget travelers to enjoy without spending a dime.
Day 3: Valparaiso, Chile - The Jewel of the Pacific
Bus to Valparaiso
Head to Terminal Pajaritos and catch a bus. The ride takes about 1.5 hours and is much cheaper than any private tour or train option.
Cerro Alegre & Cerro Concepción
Get lost in the labyrinth of stairs and alleys. These hills are world-famous for their street art. Every corner is a free museum of murals and mosaics.
Ascensor Artilleria
Ride one of the historic wooden elevators (funiculars) for just a few cents. It provides a classic view of the busy shipping port below.
Plaza Sotomayor
Walk through the grand naval square and watch the sunset over the Pacific Ocean from the Muelle Prat pier.
Day 4: Viña del Mar, Chile - Coastal Relaxation
Reloj de Flores
Take a local 'micro' (bus) to Viña del Mar. Visit the famous Flower Clock, an iconic landmark that costs nothing to visit.
Playa Reñaca
Walk along the coast to the beach. It’s a great spot to relax and watch the surfers. Bring your own snacks to avoid the high-priced beach cafes.
Museo Fonck
Check out the genuine Moai statue from Easter Island located right outside the museum for free. It’s the closest most budget travelers get to Rapa Nui!
Return to Valparaiso
Head back to your Valparaiso hostel. Most hostels in Valparaiso have communal kitchens—perfect for cooking pasta and meeting other travelers.
Day 5: La Serena, Chile - The Colonial Gateway
Northward Bus Journey
Board a bus from Valparaiso or Santiago to La Serena (approx. 7 hours). This is your entry to the north. Buy tickets in advance to secure the 'Semi-Cama' seats at a discount.
La Recova Market
Explore the traditional market of La Serena. It’s famous for papaya products. You can buy cheap local snacks and crafts here.
Avenida del Mar
Walk the long coastline connecting La Serena and Coquimbo. The lighthouse (El Faro) is a great landmark for a sunset photo.
Hostel Dinner
La Serena has excellent supermarkets like Lider. Cook a communal meal with fellow backpackers to keep your daily spend under $20.
Day 6: Elqui Valley, Chile - Pisco and Stars
Vicuña Day Trip
Take a local bus to Vicuña, the birthplace of poet Gabriela Mistral. The ride through the valley offers stunning views of vineyard-covered mountains.
Pisco Elqui
Continue to this tiny village. Visit a local pisco distillery for a budget tour. You can often get free samples of Chile's national spirit.
Stargazing (Budget Style)
While professional observatories are expensive, the Elqui Valley has some of the clearest skies in the world. Just walk away from the village lights for a free, spectacular show.
Return to La Serena
Catch the last bus back to the city to save on the more expensive accommodation in the valley.
Day 7: San Pedro de Atacama, Chile - The Long Haul North
Boarding the Overnight Bus
This is the most efficient way to travel. A 17-hour bus ride from La Serena to San Pedro de Atacama saves you the cost of a night's accommodation.
Desert Landscapes
Enjoy the shifting scenery of the Atacama Desert from your window. Chilean buses are surprisingly comfortable and often provide a snack.
Onboard Rest
Use this time to plan your Atacama activities. Download offline maps and research the free hiking trails near the town.
Arrival in San Pedro
Disembark and walk to your hostel. The town is small and very safe for walking even late at night.
Day 8: San Pedro de Atacama, Chile - Valle de la Luna
Bike Rental
Skip the expensive group tours. Rent a mountain bike for the day (approx. $10 USD) to explore the surrounding desert at your own pace.
Pukará de Quitor
Cycle to these ancient pre-Inca ruins. The climb to the top offers a stunning view of the Death Valley (Valle de la Muerte).
Valle de la Luna
Cycle into the Moon Valley. The salt caves and the Great Dune are otherworldly. Staying for sunset is mandatory—the colors are legendary.
Adobe Architecture
Walk through the town’s dusty streets. San Pedro's church is one of the oldest in Chile and is free to visit.
Day 9: San Pedro de Atacama, Chile - High Altitude Treks
Devil’s Throat Hike
Cycle or walk to the Catarpe area. The 'Garganta del Diablo' (Devil’s Throat) is a narrow canyon that you can hike through for a very small entry fee.
Picnic in the Desert
Pack a lunch from the local 'feria' (market) to eat in the shade of the canyons. Avoid the main street restaurants which are aimed at luxury tourists.
Stargazing Session
San Pedro is world-renowned for astronomy. While tours cost money, the view of the Milky Way from the outskirts of town is entirely free.
Hostel Social Hour
Backpackers from all over the world gather here. It’s the perfect time to find partners for ride-sharing or splitting costs on grocery runs.
Day 10: San Pedro de Atacama, Chile - Salt Lagoons
Laguna Cejar Exterior
While swimming in the salt lagoons is expensive, you can cycle to the area to see the stunning white salt crusts and turquoise waters from the road for free.
Village Exploration
Visit the local craft market. Look for wool products and local volcanic stone carvings. Even if you don't buy, it's a great cultural experience.
Valle de la Muerte Sunset
One last sunset in the desert. The viewpoint at the top of the valley (accessible by bike or a long walk) provides a dramatic end to your stay.
Packing for the South
Prepare your gear for the cooler, wetter climate of the Lake District. Temperatures will drop significantly.
Day 11: Puerto Varas, Chile - Entering the Lake District
Travel to the South
Take a bus to Calama and then a flight or a long series of buses southward. Puerto Varas is the gateway to the stunning Llanquihue Lake.
Llanquihue Lakefront
Walk along the shore of the massive lake. On a clear day, the Osorno and Calbuco volcanoes dominate the horizon. It is a stunning, free view.
Sacred Heart of Jesus Church
Visit this iconic red and white wooden church inspired by German architecture. Entry is free and the interior is beautifully crafted.
Kuchen Tasting
German influence is everywhere. Find a local bakery and try a slice of 'Kuchen' (cake)—a delicious and cheap way to experience the local culture.
Day 12: Puerto Varas, Chile - Volcano Vistas
Ensenada Bus
Take a local bus toward Ensenada. This is the cheapest way to get close to the Osorno Volcano and the Vicente Pérez Rosales National Park.
Saltos del Petrohué
Visit these powerful turquoise waterfalls. While there is a small entry fee for the National Park, it is one of the most affordable and impressive sights in Chile.
Lake Todos los Santos
A short walk from the falls leads to this emerald-colored lake. Sit on the black sand beach and take in the silence of the Andes.
Return to Puerto Varas
Catch the local commuter bus back. These 'micros' are frequent and very cheap compared to tour vans.
Day 13: Frutillar, Chile - German Heritage
Local Bus to Frutillar
A 30-minute bus ride takes you to this picturesque town. It looks more like a village in Bavaria than South America.
Frutillar Bajo
Walk the promenade along the lake. The Teatro del Lago is a world-class opera house; you can admire its stunning exterior for free.
German Colonial Museum (Exterior)
While the museum has a fee, the surrounding gardens and the old-world atmosphere of the town are free to enjoy.
Sunset over the Lake
Frutillar offers one of the most symmetrical views of the Osorno Volcano. Perfect for budget photography enthusiasts.
Day 14: Castro (Chiloé), Chile - The Island of Myth
Bus to Chiloé Island
Take a bus from Puerto Varas or Puerto Montt. The ticket includes the ferry crossing, which is a highlight in itself as you might spot dolphins.
Palafitos of Castro
See the famous colorful houses on stilts. They are best viewed from the bridge or the waterfront—entirely free and iconic of Chilean culture.
UNESCO Wooden Churches
Castro's church (San Francisco) is a massive yellow wooden structure. It is a UNESCO World Heritage site and free to enter.
Local Kitchens (Cocinerias)
Eat at the local market kitchens. Try 'Curanto'—a traditional seafood and meat dish. It’s filling enough to last you all day!
Day 15: Pucón, Chile - Adventure Capital
Northward to Pucón
A 5-hour bus ride takes you into the heart of the Araucanía region. Pucón is nestled at the base of the active Villarrica Volcano.
Playa Grande
Walk to the volcanic black sand beach on Lake Villarrica. It’s the perfect place to relax after a long bus journey.
Ojos del Caburgua
Take a local bus to these stunning blue pools and waterfalls. The entry fee is very low, making it a perfect budget afternoon trip.
Hostel BBQ
Backpacking in Pucón is all about the social scene. Most hostels host a 'Asado' (BBQ) where you can chip in a few dollars for a feast.
Day 16: Pucón, Chile - Huerquehue National Park
Huerquehue Bus
Catch the early public bus to the National Park entrance. This is much cheaper than taking a tour van.
Los Lagos Trail
Hike through ancient Araucaria (Monkey Puzzle) forests. The trail leads to several crystal-clear alpine lakes. This is a challenging but rewarding free activity (after park entry).
Nature's Silence
Enjoy the panoramic views of the volcano from the high ridges of the park. This is the quintessential Lake District experience.
Return to Pucón
Rest your legs back in town. Use your last night to swap stories with other travelers heading south as you head back north.
Day 17: Santiago, Chile - Final Journey
Overnight/Day Bus to Santiago
Board the final long-distance bus back to the capital (approx. 9 hours). Enjoy the view of the central valley vineyards.
Last-Minute Souvenirs
Visit the Santa Lucía craft market for affordable copper jewelry or wool scarves before your flight home.
Final Chilean Meal
Head to a local 'Fuente de Soda' for a 'Chorrillana'—a massive plate of fries topped with meat and eggs, perfect for sharing on a budget.
Airport Transfer
Take the 'Centropuerto' bus from Los Héroes station to the airport. It is the cheapest way to reach SCL for your flight home.
Best Time to Visit Chile
The best time to visit Chile on a budget is during the shoulder seasons: Spring (October to November) and Autumn (March to April). During these months, the weather is mild enough for hiking in both the north and south, but the peak summer crowds haven't arrived, meaning hostel prices are lower and buses aren't fully booked. If you are focusing on the Atacama, anytime is good, but the Lake District is best seen in late spring when the wildflowers are in bloom.
Currency & Money
The local currency is the Chilean Peso (CLP). While credit cards are widely accepted in major cities and supermarkets, you must carry cash for local buses (micros), small street food stalls, and markets in rural areas like Chiloé. ATMs are plentiful but often charge a high transaction fee (approx. $7-9 USD) for foreign cards; try to withdraw the maximum amount possible each time to minimize fees. Tipping of 10% is standard in restaurants but not required at street food stalls.
Getting Around Chile
Chile has one of the best bus systems in South America. Companies like Turbus and Pullman offer various comfort levels—'Semi-Cama' is the budget standard, while 'Cama' offers fully reclining seats for long hauls. For the massive distances between the north and south, check budget airlines like Sky or JetSmart, which can sometimes be cheaper than a 20-hour bus if booked in advance. Within cities, use the Santiago Metro (requires a 'Bip!' card) or the colorful local 'micros' in the regions.