Chile is, overall, one of the more expensive countries in South America to travel through, particularly for lodging and restaurant meals. Even so, the budget varies a lot depending on the region you visit and your travel style, so it's worth thinking about it by spending category rather than as a single number.
What drives up the cost the most
Internal transportation tends to be the biggest unexpected expense: distances in Chile are long, and moving between the north, the center and Patagonia almost always means domestic flights, since going by bus between those zones can take more than a full day. Booking domestic flights ahead of time cuts that cost down considerably.
Where to save without losing the experience
- Intercity buses within the same region (say, within central Chile or within Patagonia) are considerably cheaper than domestic flights.
- Eating at markets and fairs (like Mercado Central in Santiago) tends to cost less and feel more authentic than tourist restaurants.
- National parks have accessible entrance fees compared to other trekking destinations around the world; the bigger expense is usually the transport to get there, not the entrance fee itself.