We travelled for one month on $16 AU each a day through Iran. The Frugal Travel guide to Iran will show you how we did it.

The Frugal Travel Guide to Iran

Iran is an amazing country full of incredible sights, beautiful architecture and mind-blowing historic places to visit. Best of all for the frugal traveller, It is amazingly good value for money.

At the present time the Iranian Rial is suffering due to economic sanctions imposed on the nation. Foreign currency is much needed and is growing in value daily. Tourists who come and spend here are helping to inject much needed hard currency into the economy.

We spent one month in Iran, had a great time and met some fantastic people. It was great value for money and we found it easy enough to travel around this enigmatic country. We’ll show you exactly how we did it here. First of all, a few questions answered…

Is Iran safe?

Don’t let the hype on the western media cloud your judgement on Iran. It has to be one of the safest countries we’ve ever travelled in. In one month we had absolutely no security issues.

Instead we met a lot of friendly, hospitable people who were curious and interested to meet us. The Iranian people have a culture of hospitality that welcomes the foreign traveller with open arms. On many occasions we were showered with kindness and generosity.

Where should I go?

We spent one month in Iran and we focused on the highlights and went to Tehran, Mashhad, Shiraz, Yazd, Varzaneh and Esfahan as well as a few desert destinations. Read about our month in Iran here.

It’s advisable not to venture too close to the borders with Afghanistan, Pakistan or Iraq. Check the current situation before going, otherwise the whole country is your oyster.

Can I travel independently?

Sure you can. Well, at least as long as you don’t hold a UK, USA or Canadian passport. Unfortunately those nationalities must travel with a guide in order to qualify for a visa, otherwise you can easily come to Iran and arrange your own transport and accommodation here. It’s difficult to organise this from overseas due to the sanctions but easy enough when in Iran, therefore bypassing the need for expensive tours.

Do I need to cover up?

Islamic law dictates that women must wear hijab. This means covering the head with a scarf and wearing loose fitting clothing. You will see this observed at different levels depending where you go. In Tehran women push the boundaries, wearing their scarves way back on their heads, wearing make-up, very modern fashions and wearing tight fitting clothes under their manteaus (long jackets). Elsewhere it is much more conservative.

Do people speak English?

Iranians are very well educated and although Farsi is the national language you will always find someone who can speak English. We survived quite well for a month with very little Farsi. It’s always good to learn a few words though and knowing the numbers is a huge help.

OK… That’s enough questions!!

This Frugal travel guide to Iran will focus on the practicalities and the cost of travel in Iran and how we managed to travel on $16 AU per day.  There are thousands of other blogs and guides out there that can answer any other question you might have about Iran…

Actually, we are always happy to answer any questions and help in any way we can so if you have a specific question, please leave a comment in the form below and we will get back to you!

Read our blog – One Month In Iran – to see where we went and what we did

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The categories we will cover in this guide to Iran will be

• Money
• Accommodation
• Transport
• Food and drinks
• Sightseeing
• Internet Access

Money

TIP – The best website to get the current black market or second market exchange rate is bonbast.com If you want to see the current bank rate or first market rate go to xe.com

One of the most complicated parts about travel in Iran is dealing with the money issues due to the sanctions. These are the important things you should know in advance.

1. Your overseas credit or debit card will be of no use to you in Iran. You can not withdraw money from an ATM. You must bring enough cash to last the entire length of your stay.
2. The most popular currencies for exchange are € Euros or $US. Don’t bother bringing anything else.
3. There are exchange shops in all the cities. Also you will find guys hanging around in the streets near to them. Their rates may be slightly better but you always risk getting scammed if you change with them. We advise to stick to the shops. In any case – check your change!
4. The exchange rate fluctuates daily due to the instability of the currency so it is best to not change too much at the same time or you risk losing some of its value. We changed around $100 at a time. While we were there in November 2018 the rial fluctuated between 115,000 to 138,000 to the $US
5. The exchange rate in a bank (first market rate) is different to the exchange rate in an exchange shop (second market rate). The bank rate is about one third of the second market rate. Current bank rate is 42,000 Rial to the $US. On no account should you change money in a bank!
6. Some hostels such as the Heritage hostel in Tehran can arrange a money transfer from overseas for you through a third party in an emergency. You will pay a handsome commission for this service though.

Rial or Toman???

Another complicated part of the money situation is the denomination that prices are quoted in. The official currency is the Rial but because its value is so low, most people quote prices in Toman which is worth 10 times more.

Example – 100,000 Rial = 10,000 Toman

Both amounts = $1 Australian

To make matters worse, the people would just say 10 leaving you quite confused as to which. The first day I was there I walked into a shop and bought a small packet of biscuits. The guy said 15. I didn’t know if it was 15,000 Rial or 15,000 Toman which could have been 15 cents AU or $1.50 AU. I just held out my money and he took the necessary amount. It turned out to be 15,000 Rial which is 15 cents. Luckily most people are very honest and generally things are very cheap.

After a few days of familiarising yourself with the price of things, it will get a lot easier. I will include a list of typical prices further below as an example of what to expect.

Guide to Iran – Exchange rate

For the purpose of this blog I will use the exchange rate of 134,000 Rial to the $US as it was the most common rate we received in November 2018.

• US$1 = 134,000 Rial
• EU€ = 151,000 Rial
• UK £= 173,000 Rial
• AU$1 = 95,000 Rial

TIP – The best website to get the current black market or second market exchange rate is bonbast.com If you want to see the current bank rate or first market rate go to xe.com

Accommodation

There are plenty of accommodation options in Iran. As frugal travellers we were always looking for the best value beds for the night so either stayed in the cheapest double we could find or in a dorm bed.

Hostels

Before it was difficult to book and pay for rooms in advance online but now some hostels have websites where you can reserve a bed in advance and pay on arrival. Some booking sites too. You cannot find anything on Booking.com yet there are plenty of options on hostelbookers and hostelworld. We just rocked up without booking and would always find a room as we wanted to be flexible. Sometimes a cheaper rate could be negotiated if it was quiet and we were staying for longer than a few nights.

Prices are generally charged in Euro but you can also pay in Dollars or Rial.

Couchsurfing

Couchsurfing is huge in Iran. There are thousands of hosts waiting for guests all over the country. We met dozens of travellers moving round the country from one host to another. We tried it ourselves in Shiraz for 3 nights and although we enjoyed the interaction with our hosts, we preferred to have the freedom of being in our own accommodation.

Find a couchsurfing host here.

Where we stayed in Iran and what we paid

Mashhad

Vali’s place – 1,300,000 Rial – US$10 in a dorm bed.

Vali’s was the most expensive place we stayed in Iran. The dorm room was down in a dark basement type room. Vali was friendly as his main motive is to sell a tour, carpet or service. We didn’t find many options in Mashhad unfortunately.

Tehran

Heritage Hostel – 630,000 Rial – US$4.70 in a dorm bed including breakfast.

Heritage Hostel is the best hostel we stayed in in Iran. Super comfortable beds, amazing breakfast included and a really good vibe with friendly staff and fellow travellers. One of those hostels that is hard to leave.

Shiraz

Couchsurfing in a suburb in the north of the city. We were regularly recommended Taha hostel by other travellers.

Yazd

Friendly Hostel – 800,000 Rial = US$6 each in a double room including breakfast.

Great location close to the Jameh mosque, friendly people, great breakfast and a rooftop view to die for.

Varzaneh

Negaar traditional guest house – 1,000,000 Rial = US$8 each in a dorm (which we had to ourselves) including breakfast.

Negaar is a good quality place that is affiliated with Heritage Hostel in Tehran. Mohamed who runs it offers great tours into the nearby desert.

Esfahan

Ragrug hostel – 1,100,000 Rial = US$8.70 each in a double room including breakfast.

Ragrug is an excellent new, modern hostel with extremely friendly and helpful staff. It is a little way from out from the centre of Esfahan but it is easy to get in by local bus or cheap Snapp taxis.

How to travel the world as a Frugal Traveller

Transport

Transport is very good value for money in Iran as the cost of fuel is minimal. We took trains, buses, taxis and hitchhiked to get around. Trains are very comfortable but more expensive than buses.

We took night trains for longer distance journeys to save on accommodation costs but took buses during the day so as to enjoy the incredible desert and mountain scenery from the window.

Tip – The standard of driving in Iran is terrible and road accidents are common. We would not advise travelling by bus at night.

Journeys we took in Iran and what they cost us each

Saraghs to Mashhad –  Bus – 3 hours – 80,000 Rial = US$0.60

Mashhad to Tehran – Train – 12 hours overnight – 1,200,000 Rial = US$9

Tehran to Shiraz – Train -10 hours overnight – 1,250,000 Rial = US$9.30

Shiraz to Yazd – VIP Bus – 6 hours – 430,000 Rial = US$3.20

Yazd to Na’in  – VIP Bus – 3 hours – 200,000 Rial =  US$1.50

Na’in to Varzaneh – Taxi – 1 hour – 250,000 Rial each = US$1.90

Varzaneh to Esfahan – Hitchhiking to highway then taxi – 5 hours total – 150,000 Rial each = US$1.10

Esfahan to Tehran – VIP Bus – 7 hours – 400,000 Rial = US$3

Total cost of a month’s travel around Iran = Less than US$30!!!

Our journey from Mashhad to Tehran on YouTube

Bus travel

Buses are plentiful and go everywhere. Generally you do not need to book in advance. Especially between major cities you will find buses leaving very regularly so you can just buy a ticket at the counter and board the next bus.

VIP buses are slightly better than ordinary buses and have reclining seats, more legroom and normally have a snack box included which will be a juice, a piece of cake and some fruit. They all tend to be quite old with fraying furnishings.

After 3 or 4 hours on the road buses tend to stop at roadside services where you can get food.

Train travel

It is best to book your train at least one day in advance to make sure you get a place. You can go to the railway station to buy your ticket or your hostel or a travel agent can book it for you. They will charge a very small commission for this. We booked through our hostels for convenience which saved a lot of time and effort.

Tip – You will need your passport when you book a ticket and for boarding both trains and buses.

Compared to the trains we took in Russia, China and Central Asia, Iranian trains are very smart, comfortable and modern. We were surprised at the furnishings we got in our 2nd class sleeper berths. TV, comfy beds and tea and breakfast served are all part of the inclusions. Very civilised!

Arrive at the station least one hour in advance of departure for security and passport checks.

Transport around cities

As frugal travellers we normally take public transport or walk to get around cities as it’s cheap and good exercise. In Iran you have some great options for cheap travel.

Buses are easy to use in most cities once you find out where they go. In Mashhad they were 20,000 Rial – 15 cents US a ride which you pay when you get on. Public buses are separated by sex, men at the front and women at the back.

Metro is the way to get around Tehran as the traffic is so bad and a ride is only 10,000 Rial = US 8 cents.

Taxi  – Without a doubt the most convenient way to get around anywhere is to take taxis using the Snapp app. Snapp is the Middle East’s answer to Uber. It is cheap, easy to use and fast. A ride around any city will cost around 50,000 to 100,000 Rial = US 40 – 80 cents.  
Snapp saves the hassle of negotiating because the fee is set in advance. Therefore we used it so much we put on weight because we stopped walking!!

Tours

We took a couple of tours organised locally during our trip as it made it easier to get out to some more remote destinations where public transport does not reach. You can do this by organising transport directly with a taxi driver or through a hostel, hotel or local tour agency and remember, it is always best to shop around a bit and ask other travellers for recommendations.

Yazd to Kharanak, Chak Chak and Meybod  – A half day trip out of Yazd into the surrounding desert landscape. As 4 people shared a car with a driver/guide it cost 700,000 Rial = US$5.20 each plus entry fees into the attractions.

Varzaneh into the desert sand dunes and salt flats. An afternoon/evening desert tour with the highlight being watching the sunset across a sea of sand dunes. Mohamed from Negaar guesthouse in Varzaneh runs this great tour. 4 of us went for US$10 each and tea and snacks are included.

Read more about these tours and other adventures we had in our other post – One Month in Iran

Food and drinks

You can eat well in Iran very reasonably, a meal will only set you back $1 or $2. You can fill up for cheap by eating kebabs, falafels and fast food and a good quality Iranian dish will only cost a little more. Fruit and veg are also very reasonable in the markets. Most hostels will include a substantial breakfast in the price so you can set up for the day, snack for lunch and have a hearty meal for dinner.

Iranians tend to eat late so expect many eating places to be closed early evening.

Drinks are fabulous and well priced too. Tea is the ubiquitous hot drink of choice and freshly squeezed juices can be found everywhere. Try the amazing yogurt drinks with pomegranate, walnut, honey and pistachio … Yum!

Guide to Iran Tip – It is sometimes hard to find a good restaurant as fast food dominates everywhere. Ask in your hostel for recommendations for local places or get your Iranian friends (You’ll soon get some) to show you.

Prices we paid for food

Large Kebab meal – 150,000 – 250,000 Rial

Chicken and rice dinner – 150,000 – 450,000 Rial

Burger meal – 200,000 – 400,000 Rial

Slap up meal for 3 in our favourite restaurant in Shiraz including dizi, fesenjoon and aubergine salads – 700,000 Rial

Osh soup in Esfahan bazaar – 100,000 Rial

Prices of snacks

Packet of biscuits – 15,000 Rial

Flat bread from a local bakery – 5000 Rial

Falafal – 50,000 – 100,000 Rial

Pizza from a food stand – 140,000 Rial

Ice creams from a shop – Delicious! – 30,00 – 40,000 Rial

Pomegranates in Esfahan – 50,000 Rial a kilo

Prices of drinks

Mahjoon yogurt drink – 110,000 Rial

Pomegranate juice – 60,000 Rial

Tea – Very cheap or often free

Read our blog – Travel costs and information for Iraqi Kurdistan

Sightseeing

The cost of getting into places of interest, historic sights and museums is very reasonable in Iran. Foreign tourists pay a lot more than locals but it is still good value for money. Expect to pay 100,000 to 200,000 Rial entry fee to most sights. 134,000 Rial = US$1

Here is an example of some of the entrance fees we paid

Imam Reza shrine – Mashhad – Free. Museums inside – 10,000 Rial each

USA Embassy Den of Espionage – Tehran – 200,000 Rial

National Jewellery Museum – Tehran – 200,000 Rial

Azadi tower – Tehran – 150,000 Rial

The Nasir al-Mulk Mosque – Shiraz – 200,000 Rial

Qavam House – Shiraz – 200,000 Rial

Hafez’s Tomb – Shiraz – 200,000 Rial

Water Museum – Yazd – 150,000 Rial

Zoroastrian Fire Temple – Yazd – 150,000 Rial

Towers of Silence – Yazd – 150,000 Rial

Lotfallah Mosque – Esfahan – 200,000 Rial

Ali Qapu Palace – Esfahan – 200,000 Rial

Vank Cathedral – Esfahan – 300,000 Rial

Internet access

Every hostel in Iran will have wifi and it is pretty good compared to Central Asian countries although you will be restricted to what you can access. If you want to maximise social media then you will need to set up a VPN before you go.

Sim cards and data are very cheap and easy to organise. We did ours in a phone store in Mashhad when we arrived. It cost 220,000 Rial = US$1.65 for 5 GB of data for 1 month, don’t forget to take your passport with you.

Guide to Iran Tip – You will not be able to do your usual financial transactions online from Iran because of the sanctions so if you need to book flights or pay for things online, get all that sorted before you come.

The Frugal Travel Guide To Iran – Conclusions

As you can see, Iran is an extremely affordable country to travel in. In 30 days we spent –

AU $473 – That’s AU$15.77 a day or US$11.40 a day or £8.74 a day or
€10 a day per person.

That included accommodation, travel expenses, food and drinks, entrance into sights and even a few souvenirs to bring home! The only thing that didn’t include is the visa cost and of course getting there.

How to travel the world as a Frugal Traveller

Read how we got our Iran visa in Bishkek, Kyrgyzstan

We hope this budget guide to Iran has been of help to anyone who is planning on travelling in Iran and who wants to know what things cost. Remember that it is a country with a volatile economy so please check the current exchange rate before you go.

Let us know your thoughts in the comments box below and please contribute with new information if you have anything to add. We’d love to hear the latest news because we’d love to return to this wonderful country again one day.

Happy travels!

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