As a traveler myself I have definitely noticed a huge difference in the way people travel... I tend to enjoy traveling backpacker style, staying in youth hostels, not because I can't afford anything more, but because of the experiences. The summer after college I flew to Frankfurt with a 1 month eurail pass and spent the next 5 weeks traveling up to Norway and down to Italy. Switzerland was ridiculously expensive... I think I lost weight there but gained it back in the Czech republic.
India was expensive to fly there, but cheap when I got there... spent 3 weeks in Vietnam, Cambodia, India, and the day to day costs were pretty darn cheap.
I agree with the rationale that you should fly to closer places... I flew to Lima for ~600$ RT (helps to live in the southern part of the US) and that was quite cheap... the Inca trail hike was probably one of the most expensive parts of the trip.
But it was relatively cheap to get there.
Costa Rica is another cheap flight idea... of course there were so many Americans down there that it felt kind of fake. But we rented a car and drove around, and I felt had a good experience.
Anyway, the main question you have to ask yourself, is, "What do I plan on getting out of my travels? Am I travelling to relax, and get away from it all, or to experience the culture/get new experiences?"
I personally travel for the latter reason, and would rather spend 10$ for a youth hostel overnight rather than 100$ for a stuffy hotel. To me, it isn't important to see the big tourist sights, but to meet the locals, and get out of your comfort zone a bit.
Also, when you travel to just check things off (so you can say "Yeah, I saw the Eiffel Tower. Check") then I don't believe that it really changes you much.
On the other hand (at least for me) if you really spend time meeting the locals, talking to other people at the youth hostels, and maybe missing one or two of the major tourist sites, you will get a much richer experience, imo.
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