7 ways to save money in Cusco, Peru, the gateway to Machu Picchu.

Cusco, Peru, often acts as a base for visiting the iconic Machu Picchu.

This wonder of the world is absolutely worth the trip. But the city of Cusco itself is often overshadowed by this famous site of ancient Inca civilization.

Cusco is a lively cultural hub of southeastern Peru.

Tourists, locals, and alpacas can all mingle in the rickety stone streets.

Because this South American city is so affordable and full of fun things to do, travelers often find themselves staying longer than planned.

There are plenty of ways to save money in Cusco so you can afford to hang around for longer.

For those who want to really experience Cusco, rather than just stop over for a night en route to Machu Picchu, here are some tips for making the most of this city while on a budget.

Enjoy these 7 ways to save money in Cusco!

7 Ways To Save Money in Cusco, Peru

1. Stay In Hostels

Perfect for meeting new friends, sleeping in comfort, and living close to the city center, hostels offer great accommodation for cheap prices.

A Cusco favorite is Milhouse Hostel, located just a couple streets away from the city’s main square.

This social hostel has a free buffet breakfast, a gorgeous sunny courtyard, and a comfortable atmosphere, all for only 36 Peruvian Soles per night.

Visit Hostelworld to browse through all Cusco’s amazing hostels!

To save even more money, consider working in a hostel. There are so many fun hostels in Cusco, and many offer work exchanges. That means you work around 20 hours per week in exchange for a free stay.

This is a super fun way to meet people, learn new skills, and save money in Cusco.

I used the website Worldpackers to find a work exchange in Cusco. It’s super easy to use, and you can message the host directly to discuss the details of your stay.

Read about my work exchange in Peru for more ways to save money in Cusco

2. Take Advantage of Hostel Nightlife

Cusco’s nightlife supplies nonstop fun, and it won’t break the bank.

Party hostels, such as Milhouse, offer discounts and free drinks at some amazing dance clubs.

Most nightclubs, like the popular “Chango”, are located near the central square so you can usually walk. This saves you money on taxis for nights out!

Another perk of Cusco is the safety of the streets, so as long as you go out partying with a few friends for company, walking should never be a problem.

Hostels often have their own bars as well, like Loki Hostel.

So backpackers often don’t even need to leave the hostel for a great night.

3. Carefully Shop For Souvenirs

The textile industry brings income, color, and soul to the city in the form of rainbow patterned goods.

No traveler leaves Cusco without buying an Alpaca sweater or two. Aand there is no shortage of places to shop for souvenirs!

Some of the best prices are at Asunta Market.

This shop is run by extremely friendly people, and the shelves literally overflow with gorgeous handicrafts and clothes.

Shopping here is much cheaper than shopping near the main square, Plaza Del Armas.

This area is crawling with vendors trying to sell drawings and trinkets to tourists at inflated prices. So stay clear of the overly crowded, touristy spaces when buying souvenirs.

4. Use Public Transport

For transport within Cusco itself, taxis work out to be the cheapest and easiest method of travel.

For example, a 15-minute taxi ride from the airport to the city center is only 10 Soles.

On a broader scale, using public transport between Cusco and other cities or even other countries is also easy and affordable.

When traveling from Cusco to either Arequipa, Lima, or Puno, visit Terminal Terrestre, the city’s main bus station, to purchase cheap tickets for one of Peru’s comfortable coach buses.

To visit various points of interest outside Cusco such as the Sacred Valley and Rainbow Mountain, walk to a designated pickup location in the city and take a collective van with other travelers.

You can also find cheap public transport online using Bookaway!

5. Eat At Street Markets

For authentic Peruvian cuisine that won’t challenge your budget, choose local street markets for lunch rather than dining out at a touristy restaurant.

Head to San Pedro Market for snacks like fresh fruit, bags of nuts, smoothies, or sandwiches of meat and cheese.

Explore San Blas Market for a larger meal, where you can find almuerzos for only 7 Soles.

These meals usually consist of fresh juice or tea, quinoa soup, and the main course, and San Blas Market has traditional as well as vegan or vegetarian options.

6. Enjoy Free Activities

For museum lovers, Cusco has a Potato Museum, Chocolate Museum, and a Textile Museum all free to enter.

Rather than paying to enter a fancy art museum, simply wander the streets and stroll through all the open art galleries and painting shops that have beautiful Peruvian artwork on display.

For more free cultural insight, visit the Basilica Cathedral of Cusco and admire the grand religious art and delicate design.

For a more active afternoon, hike uphill to the towering Cristo Blanco Statue and enjoy a stunning view of the city and surrounding mountains.

The path up to Cristo Blanco is not clearly marked. But any local you meet on the way will be happy to give you directions.

7. Choose Tour Companies Wisely

The easiest way to visit attractions like Machu Picchu, the Sacred Valley, and Rainbow Mountain is undoubtedly through an organized group tour.

Rather than booking a tour online in advance, speak to someone at an actual tourist office in Cusco.

Talking to the locals leads to a much better deal on tours than searching online, and countless tour operators have offices in every corner of the city.

For example, a one-day hike to Rainbow Mountain can cost around 200 USD online, whereas one of Cusco’s many tourist offices will offer the same hike for roughly 30 USD.

The only exception to this would be visiting Machu Picchu during peak season, in which case tours should be booked a few months in advance.

Visit Get Your Guide to check out some highly rated tours and tickets for Machu Picchu.

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I hope you enjoyed these 7 ways to save money in Cusco!

Using these tips, backpackers will find that Cusco is not only bursting with picturesque sights and welcoming locals, but is a very affordable destination.

Instead of speeding through, take your time here.

Wander through the hilly streets, browse through the chaotic craft stores, strike up a conversation with a shop owner, and practice your Spanish.

Visit the Cathedral during morning mass and watch Peruvians gather in celebration of faith.

Chew coca leaves in hopes of adjusting to the extreme altitude. Share stories with other travelers in a hostel common area.

Enjoy every second of life while visiting Cusco. You may find that this city exceeds expectations and even rivals the hype of Machu Picchu.

Are you traveling to Peru?? Here are some helpful resources for your trip:

Flights: I always use Skyscanner to find the cheapest flights anywhere!

Travel Insurance: I didn’t get travel insurance for Peru, and you can read all about that decision in my Budget Travelers Guide to Travel Insurance. But if you want insurance, check out Squaremouth Insurance. It’s my favorite platform for comparing and finding affordable plans.

Visas: Visit iVisa.com to see if you need a visa, though most travelers don’t need a tourist visa for stays under 3 months.

Packing: Check out 15 Must-Have Travel Essentials and 50 Budget Travel Tips for packing advice.

Now that you known ways to save money in Cusco, check out my other travel articles from South America:

20 Things I Learned At Lake Titicaca

10 Best Things To Do In Quito, Ecuador

My First Volunteer Experience in Ecuador