• Budget: US$5-10
  
• Mid-range: US$10-15
  
• Top-end: US$15 and upwards
  
  

Costs in Peru are lower, on average, than those in developed countries, but higher than those in many neighboring countries. Lima and Cuzco are the most expensive places in the country. If you're on a tight budget, you can scrape by on around US$15-20 per day, but if you want to stay in modest hotels and eat out at restaurants, you'll have a better time on around US$50 a day. Prices for luxury accommodations run up to US$200 at popular destinations like Machu Picchu. The easiest currency to exchange is US dollars. Other currencies are only exchangeable in major cities and at a high commission. Money can be changed in banks, casas de cambio, first-class hotels or with street changers. Casas de cambio are usually the easiest places to change money. Street changers, who hang out near banks, never offer better rates than the best bank rate and have been known to cheat travelers so are best avoided.

Rates vary from place to place but not significantly, unless you try to change money at a hotel which charges high commission. Travelers' checks are changed at a slightly lower rate than cash. Visa is the most widely accepted credit card, but credit cards attract an 8% commission unless you are using it for a cash withdrawal (in Peruvian currency) from a bank. ATMs (Visa and Plus system are most widely recognized) are now the best way to extract money in Peru. A combination of taxes and service charges are added to bills in the best hotels and restaurants and can total as much as 28%. The cheaper hotels and restaurants don't add taxes. Tipping is not expected in budget restaurants. A tip of 10-15% is fine in upmarket restaurants if a service charge has not already been added to the bill. Taxi drivers are not tipped - bargain hard beforehand and stick to your price. Local guides should be tipped US$3-5 per day. Bargaining is a way of life in markets.