Is India Cheap for US Citizens? Your South India Travel Cost Guide

The dollar goes a long way in India, especially if you’re coming from the US. But does that make South India a true ‘cheap’ destination, or is it just clever marketing?

Let’s be real—most Americans are shocked when they see the bill for a hotel in Bangalore or a plate of dosas in Kochi. You might spend less on an entire dinner than you would on a Starbucks back home. But cheap doesn’t always mean best value, and it’s easy to wind up paying more if you’re not careful.

So, how much should you really expect to pay for decent food and a clean place to sleep? Is public transport dirt-cheap or just crowded and confusing? And what about sneaky fees and classic tourist traps that catch foreigners off guard?

If you’re eyeing South India for your next trip, I’ve got the numbers, the tips, and the real talk about cost. You’ll know exactly where your money goes—and where you can cut back without missing out on the best stuff.

• What Makes India Cheap (or Not) for Americans?
• Breakdown: Cost of Food, Stay, and Getting Around
• Top Ways Travelers Accidentally Overspend
• Hidden Costs and Scams to Watch Out For
• Smart Tips to Get the Most for Your Dollar

What Makes India Cheap (or Not) for Americans?

Most Americans see India as a place where their money can go further, and they’re not wrong—at least, most of the time. The currency exchange rate is the big reason why. As of May 2025, $1 USD equals about 84 Indian Rupees. That means regular things like meals, taxis, and hotels feel way less expensive compared to what you’d pay back in the US.

But here’s the kicker: India is only cheap if you spend like a local. The minute you start seeking out international chains, fancy resorts, or imported alcohol, the prices go up—sometimes a lot more than you’d expect, because those things are luxury items in India.

Let’s look at a quick comparison for everyday travel costs in South India versus the US:

Those numbers make it clear why backpackers, students, and retirees love South India—it’s just a whole different ballgame for daily costs.

But before you look up India travel cost and start crunching numbers, remember that not everything is always a deal. Domestic airfares, guided tours, and some tourist attractions now have higher prices for foreigners. There’s even a “foreigner price” for certain tickets, whether you like it or not.

The other thing nobody tells you: inflation in India exists! While things are still cheap by US standards, prices have been creeping up, especially in places that see a lot of international tourists. If you keep your expectations flexible and stay open to local experiences, you’ll feel the savings. But walk into a five-star hotel and order imported wine? Suddenly, the price gap almost disappears.

Bottom line: South India is usually a steal for Americans, but how cheap it is depends on your choices. Avoid chain hotels, stick to Indian food, and use local transport if you want the best value.

Breakdown: Cost of Food, Stay, and Getting Around

Let’s get straight to the numbers. South India really stretches your wallet if you know what you’re doing. Here's what most US travelers actually spend on a normal day:

Eating out is a bargain by most US standards. A full thali lunch at a local spot in Chennai or Kochi hovers around $2. If you dine at hotel restaurants or trendy cafes, think $7–$15 per meal. Grab a masala dosa from a street vendor? That’s barely a dollar. Bottled water is a must and adds up if you’re out all day—expect about $0.30 per big bottle.

When it comes to places to stay, South India offers everything from chill beach huts in Gokarna (as low as $10 a night) up to fancy resorts in Kerala’s backwaters (think $150+ if you’re feeling flush). Hostels are popping up in most tourist spots—clean beds for $7–$15. Mid-range hotels often land in the $30–$50 sweet spot with AC, wi-fi, and breakfast included.

Getting around is where you really feel the value. City auto rickshaws (tuk-tuks) might charge $1–$2 for short rides, but always agree on a price first or insist they use the meter. State-run buses are crazy cheap—under a dollar for most short hops—and cover even small towns. For longer trips, India’s trains rock. An air-conditioned seat in a decent train usually costs under $10 for a 2-3 hour ride. Sleeper class is dirt cheap ($3–$5), but don’t expect luxury. Renting a car with driver? Count on $35–$50 a day—which is awesome if you have a tight schedule or a group.

On a tight budget, you could honestly travel South India for $25–$35 a day, all in. If you want comfier beds, private rides, and regular espresso, double it. But compared to US costs, India travel cost still wins, hands down.

• Eat at local places, not tourist hotspots.
• Negotiate for taxis and rides—don’t accept the first price.
• Trains and buses are your friends for both budget and experience.
• Don’t skip travel insurance—it’s cheap in India and sometimes a lifesaver.

Bottom line: If you’re used to US prices, every day in South India feels like a discount day—unless you insist on five-star everything.

Top Ways Travelers Accidentally Overspend

Even if you start off thinking India is super cheap, it doesn’t take much to blow your budget. Prices might look tiny, but hidden extras and small daily choices add up fast. Here’s where most American travelers end up shelling out more rupees than they expected.

• Airport taxis and prepaid cabs: You land, you’re tired, you want to avoid hassle. The airport taxi line looks safe but costs 2–3 times more than an Uber or an auto rickshaw outside. In Chennai, for example, an airport cab to the city center often runs $15–$20, while a rideshare app charges half that.
• Luxury hotels and resorts: Big hotel brands and fancy beach resorts in Goa or Kerala quietly match or beat US prices. You pay $120+ per night just for Western standards, while solid local hotels go for $20–$40 a night. If you need 24/7 AC, pool, or an international breakfast, be ready to pay US rates.
• Western food cravings: Ordering pasta or a burger sets you back 2–5 times more than local fare. A Margherita pizza in Bangalore at a foreign brand chain costs around 700–900 rupees ($9–$11), while a big, traditional South Indian thali meal runs about $2–$4—and it’s much more filling.
• Guided tours and travel agents: Walk-in tours or desk bookings at hotels almost always cost double what you’d pay online. Take Kerala backwater boat rides—hotel arrangements run $40–$60 for a couple of hours, but showing up at the dock and talking to a boatman directly can get you the same for $20.
• Shopping at tourist hotspots: Buying souvenirs in Mamallapuram or Fort Kochi’s main streets? Expect sticker prices marked up 100% or more for foreigners. Bargaining is normal, and locals often pay half. Still, plenty of travelers just hand over the price on the tag and call it a day.
• ATM and bank card fees: Every ATM withdrawal often costs a fixed local fee (usually about 200–400 rupees, or $2.50–$5), on top of what your own bank charges. Using cash is a must in lots of places, but minimize withdrawals by taking out larger amounts less often.

“Tourists tend to overspend when they stick to places designed for tourists—eat where the locals eat, and you’ll see how affordable India really is.” — Lonely Planet India, 2024 Edition

It’s easy to be impressed by a cheap train ticket, but hundreds of little choices—upgrading to first class, skipping street food, or trusting hotel desk prices—can push your India travel cost into the same range you’d spend closer to home. When you plan ahead and keep an eye out for these common traps, your dollar stretches a lot further.

Hidden Costs and Scams to Watch Out For

Even if you’re feeling like a budget king, a trip to South India can quickly get pricier than you expected. Not everything is as cheap as it seems, and there are classic traps and sneaky extra charges that get plenty of US travelers every year. Here’s what you need to know before you swipe your card or hand over your rupees.

• Hotel Taxes and Service Fees: It’s common for hotels to add GST (Goods and Services Tax) of 12-18% that’s not shown up front on booking sites. A place that looked like $23 a night might show up on your bill as $27-28/night after taxes and other fees.
• Tuk-tuk and Taxi Games: Drivers often "forget" to turn on the meter and might quote 2-3 times the real local fare if you’re not from around there. Apps like Ola and Uber exist, but in smaller towns you’ll have to haggle and may pay more than locals.
• Temple or Attraction Donations: Some temples or monuments have an "entry fee," but you might get pressured for an extra "donation" or tip by unofficial guides or staff. These aren’t official, and you can politely say no.
• Tour Salesmen and Fake Guides: You’ll meet plenty of friendly folks offering city tours, boat rides, or spice garden visits that sound super cheap—until it’s time to pay, and all the extras add up. Only book through trusted platforms or your hotel desk.
• SIM Cards and Data Plans: Local SIMs are cheap, but the process can be confusing, and unauthorized sellers can charge double or sell expired plans. Always buy from official stores with your passport.

Here’s a glance at some real South India costs that catch travelers off guard:

Here’s what Lonely Planet has to say about travel scams:

“Most scams are small, but can be persistent. Common sense and a firm ‘no, thanks’ is often your best defense.”

Want to avoid losing cash? Always confirm prices up front, check taxes, and get SIMs only at the airport or major mobile stores. If something seems weird—like a super pushy guide or a tuk-tuk with no meter—listen to your gut and walk away. Being alert is the best way to actually make India travel cost what you planned.

Smart Tips to Get the Most for Your Dollar

If you want to make your cash go further in South India, you need more than just luck. Every smart traveler learns a few tricks, and honestly, it’s never been easier to avoid common money traps while still soaking up the sights, flavors, and culture.

First off, always check if places accept credit cards or if it's cash-only. ATMs are everywhere in cities, but service fees stack up fast, so withdrawing larger amounts less often saves you a chunk over a long trip. Also, use ATMs at reputable banks; they’re less likely to charge ridiculous withdrawal fees or short-change you with bad conversion rates.

Stay picky about accommodation. Sites like Booking.com and Agoda show the real price, but Indian hotel taxes sometimes don’t show up until you’re about to pay. Double-check the final price before you book. If you’re staying for more than a few nights, try negotiating directly with smaller hotels—you can usually snag a much better deal in person than online, especially during low season (April to June in most of South India). Bonus: most homestays serve killer free breakfasts.

For food, the best stuff often comes from bustling local spots. Don’t shy away from places crowded with students or office workers—that’s where locals eat for a reason. A proper meal at a South Indian mess costs between $1 and $3. Western restaurants charge ten times that. Street food is everywhere, too—markets and festival stalls offer fresh snacks, but check for basic cleanliness before you dig in.

Getting around doesn’t have to hurt your wallet. In cities like Chennai or Bangalore, use metered auto-rickshaws when possible, but don’t expect them at airports or late at night. Ride-share apps like Ola and Uber are easy, safe, and the fares are set upfront—no haggling or surprises. For longer journeys, Indian trains are famous for their low prices. You can ride from Kochi to Chennai (about 700km) for under $15 in second-class AC if you book directly through the IRCTC website.

• Buy a local SIM card at airports; data is cheap and lets you use maps or ride-share apps without Wi-Fi.
• Carry a steel or reusable bottle—most hotels have filtered water you can refill for free. This saves on buying bottled water, which adds up.
• Always ask for an itemized bill in restaurants—sometimes "extras" sneak onto the check, especially for foreigners.
• Visit monuments or temples on public holidays; sometimes entry is free or half-price, though crowds may be bigger.

Here’s a quick snapshot so you know what you’re really paying for typical costs in South India:

Getting the India travel cost down to a science isn’t hard, but it pays to stay alert. If you spend smart—like the locals—you can do more than you ever thought possible for less than you’d imagine.