Why: The Greek Island of Karpathos offers much of the same allure as chic Santorini and Mykonos, but with the advantage of lower prices. Karpathos is the second largest of the Dodecanese Island chain, which includes better-known Rhodes. Karpathos dates back to the 5th century BC, offering history buffs a way to have two trips in one, combining sun and sand with a step back in time. Ancient ruins can still be seen at Aghia Anastasia, while the island’s history can be studied in more detail in the Archaeological Museum. Beyond lounging on white-sand beaches, active travelers can choose from a selection of sports: fishing, windsurfing, snorkeling, scuba diving and sailing. Away from the well-worn tourist path, Karpathos has hillsides covered in vibrant wild flowers and small villages like Arkasas to explore. The island’s capital, Pighadia, is a modern city, but in small towns like Olympos, traditional dress is still worn day-to-day and life has the authentic feel of the past. Karpathos has many apartments and studios to rent, resulting in real savings. There are plenty of budget hotels under $100. Multiple restaurants and tavernas dot the countryside, where you can savor traditional Greek dishes at low prices.
How cheap is it? Very. Its largest city -- helpfully named Panama City -- is the world's third-cheapest major city. And it is major! Panama has the fastest growing economy in Latin America, with abundant new restaurants and luxury hotels; it's pretty much the most (and arguably only) truly global/metropolitan city in the region. And still a bunk in a cheap but well-reviewed and centrally located hostel will set you back only $14 per night, while those seeking luxury accommodations can stay at the damn Waldorf Astoria for $149 per. Which is stupid cheap, all things being relative. A public bus ride in the city is just 25 cents. You can eat on the cheap for under $20/day for all three squares if you hit up cafés for breakfast, the beach fish markets for lunch, and restaurants without English menus for dinner. Beers will cost you anywhere from $1.25 to $3 a pop. All in all, you're getting huge bang for your buck -- oh also literally your buck, as US currency is interchangeable with the Panamanian balboa.

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