I recently came across the “Big Mac Indexâ€, which was created by The Economist in 1986. Even though I’ve stumbled across these annual reports multiple times during my 30+ years in the financial services industry, I never really paid attention to it until now.
This year while all of you were learning and socializing at the Frequent Flyer University in the Washington D.C. area, I was home studying this year’s 2013 Big Mac Index to plan next year’s big “Dad Trip”.
The Big Mac Index is an interactive map used to measure the purchasing power between two currencies by evaluating the prices of McDonald’s famous Big Mac sandwich in its restaurants across the world. The data is published every spring by The Economist. According to the 2013 ‘indexâ€, South Africa and India’s currencies are undervalued by more than 50%, simply meaning you’re most likely able to get the “most bang for your buck” in those areas this year.
Take a look at the 2013 Big Mac Index visual map below:
The map you see above depicts 2013’s results. For those interested in comparing this year’s data to last year’s data, you may find the 2012 Big Mac Index here.
Since I naturally like to travel on a budget, I’m using the 2013 index as a tool to help me plan my next trip:
Here are some of my vacation possibilities based on the data presented above:
- India
- South Africa
- Hong kong (visited)
- Ukraine
- Egypt
- Russia
- Taiwan
- China
- Malaysia
- Sri Lanka
- Indonesia (visited)
- Mexico
- Philippines
- Thailand
- Saudi Arabia (not interested at this time)
- Poland
- Pakistan (not interested at this time)
- Lithuania
- UAE (not interested at this time)
- Latvia
- South Korea (visited)
- Japan (visited)
- Singapore (visited)
- Czech Republic (visited)
- Hungary (visited)
- Argentina (visited)
- Peru (visited)
Now I’m narrowing it down to these 5 countries based on my own personal interest:
- Thailand
- South Africa
- Russia
- Poland
- Ukraine
Narrowing it down even more, I’m leaning towards Thailand, South Africa, and Russia.
What are your suggestions and why? Have you used the Big Mac Index or something similar to plan your trips in the past?
Happy Travels,
The Dad.
Russia is one of the most expensive countries to visit (Moscow, st petersburg).. be aware.. I heard South Africa is pretty pricey.. You just got back from Australia, so nothing really beats in terms of budgeting except Switzerland lol. Thailand is pretty cheap!
I’ve been to Thailand- would actually suggest Vietnam and Cambodia much more if you haven’t been there. South Africa and Russia are on my list as well.
@Jamison: Second that! A drink at a club in Moscow can cost up to $40 from what I’ve heard :)
But if you decide to go, I can help you two practice some Russian before the trip!
South Africa is one of the best places I’ve ever been, and I’ve been going all over the world since infancy. It is inexpensive compared with Europe and parts of the US. Gorgeous country, fantastic food and wine (MUCH better than France), and the hospitality is incredible. I’m looking forward to another visit soon.
Thailand or South Africa would be my choices.
Malaysia. Or you can be like any other tourist and visit Thailand. Meh.
@TheMilesProfessor – Da!
Remember to add in the cost and hassel factor of the Russian visa if you travel there.
I would choose Thailand or Krakow Poland.
Russia. No other country was characterized as “a riddle wrapped in a mystery inside an enigma.” (Churchill). As far as a visa, no hassle – just go through one of the agencies (e.g. VisaHQ) for it.
We are already planning our trip to SA in 2014. Staying in Cape Town and then up to the Kruger and then hopefully to Victoria Falls. If you do plan to go, email me and perhaps we can share information.
We were just in Singapore a few months ago and I thought it was very expensive – surprised to see it on the list.
I would go with Warsaw. Hit up the milk bars and Hilton/Starwoods for under $80
Dad,
I want to pay back the Alonso and Sandra (Lima guides) recommendation. I vote for Thailand. Any place you can get a pint of water for 25 cents, and dinner for 2 under $10, is a place I want to go back to. And don’t get me started on $10 ninety minute massages.
@jamison and@milesproffesor. Thanks for the comments and suggestions.. Every city can be expensive without a little research. I enjoy finding local places that the locals frequent and in most cases ends up being a great travel experience. As a NY area resident there are plenty of places that serve $ 50 drinks. Would I go? Is another story.. I may take you up on the RUssian language offer. Have fun.
@kelly. Thanks. Was actually thinking of adding Cambodia to thailand itinerary
@reese- you are motivating me…love the passion in your post.
I am thinking of the following NYC- ist-bkk-jnb-CPt-NYC
@nickfrom ct I am leaning towards both destinations on 1 itinerary
@sang kancil guru- thanks for your comment. I am new to Asia region. Motivate me. Why malaysia? And how can I pair with my other destinations.
@lynn thanks for commenting. Good choices.visas can be a hassle.i seem to collect them,,,
@ yana k thanks great riddle comment
@jane s would love to share ideas once I finalize my itinerary and can find mile award space possibilities.
@dhammer- thanks for the suggestion.. Sandra and Alonzo were great.have fun.$!
+1 on the visa cost for Russia, China and some other countries like that.
I would use something like a hotel room cost index as Big Mac’s could be priced at different price points that might not reflect that true living cost in certain countries. In other words they might artificially price that sandwich to gain market share or new business in unique markets.
I’m not sure of the visa requirements in Poland but I would think Poland or Romania might be better choices based on your short list.
Wow- this is a refreshingly different post – thank you for sharing this food for thought! On a related note, I am intrigued by South Africa and would be very interested in following your planning and travel there. Please share!
Thanks again,
Cindy
No visa needed to Poland for US citizens (up to 90 days). Good availability on Star Alliance and quite a few Club Carlson properties in several Polish cities (Warszawa, Gdansk, Krakow, etc.) not to mention Hyatt (Warszawa only), Hilton, Marriott and others (not aspirational properties but good enough and affordable). It is also fairly easy to combine couple beach days in the North (weather, unfortunately, not guaranteed) with mountain hiking in the South with some cultural experience in between in Gdansk, Warszawa and Krakow (other cities too but these probably best known).
There are gems scattered all through SE Asia, but wherever you decide I’d highly recommend Angkor Wat in Cambodia. Truly remarkable, and a quick easy flight from Bangkok. But I like all your potential choices, and your method of choosing them.
Ha! I do the same thing to brainstorm destinations! :) I would recommend South Africa. I went in December, and it was mind-bogglingly inexpensive indeed. But more than that, people were about as kind and inviting as I’ve ever encountered, and it was a riotously beautiful country.
While India is at the top of the list, I suspect this isn’t a valid comparison. (Buy a Big Mac in India and you’ll be using the old Wendy’s tag line: Where’s the beef?)
@daninStl-thanks for your comment. I did a previous post on finding destinations using the backpacker index, which would be somewhat similar to a hotel index . The Big Mac index is interesting to me because it highlights the cheapest currencies at this time . My biggest challenge will be finding award space for my itineraries.
@ cindy- my research is just beginning. South AFrica is one of my favorites. Will be glad to post when I have a game plan in place
@justyna- thanks for sharing the Poland information, for sharing. I am sure I will visit on a future trip.
@robbabroad- Angkor Wat is on my bucket list. Will pair with Thailand and hopefully Vietnam.
@Jennifer S-thanks for the post. Glad you enjoyed it. Did you use frequent flyer miles.?, and how many days do you recommend for CApetown.?
Went to Warsaw for the first time a month ago. It was amazing. Very friendly, extremely cheap, but felt hip like Paris and Madrid. Stayed at the beautiful Hilton for about $90 a night, ate a ton of pierogi, and drank wonderful polish beer and French wine. Great new airport too.
Russia! Trying like mad to get to St. Pete in 2014. It’s always been my dream trip. Although, I was really hoping to see Solvenia on your list. We did Slovenia and Croatia
in Aug and It. Was. Incredible. I would seriously move to Slovenia. Iceland is one of my fav’s and I hope to see it on the list someday, too. Although, not “cheap” like some on the list, we found it less expensive than Paris. Other than the car rental. Plus, it’s easy out of JFK. My 2014 plan is St. Pete with a free stop over in Iceland on the way home via Iceland Air. We may throw in a third city…like Helsinki.
@The dad, I didn’t book with miles because I was quite new to the game at that point, but I’d certainly recommend it to make the trip less grueling. If I could do it again, I’d fly LH from Europe to CPT or JNB in business or first for the sake of catching some sleep! (I flew a red-eye from California to NYC, then 15 hours to JNB, then another 2.5 hours to CPT, all sitting up straight in economy.)
And I’d definitely recommend more time than I had in Cape Town. It was about a week, two days of which I spent driving down the Cape itself and out east to Hermanus, but you could easily spend a week in Cape Town and the townships and an additional week exploring the environs. Add more time if you’re into wine ;)
It was fabulous coming from U.S. winter weather to the height of Cape Town’s summer, but be aware that the week after Christmas (when I went) is the huge holiday week there, and everybody in South Africa was traveling. Prices were commensurately higher, a lot of mom-and-pop stuff was closed while the moms and pops visited their own families, and I juuuuust missed Carnival, the big parade on January 2, because I didn’t yet know better!
Jennifer S – we are flying out next year to SA and will also be going to Hermanus as well as Cape Town and the wine region. We are on the east coast and are considering flying South African Air there and perhaps another line to go through Europe on our way home and stopping off there. We are thinking about going end of August/beginning of September. What were your favorite things to do in SA? Did you go to Kruger or any game reserves? Anything special you would suggest we do or see in Hermanus? Would love it if you could email me with info: schwalmie at aol dot com
@blaine- thanks for your comments . pOland is sounding good.
@ nic- thanks for comments, wish I had more vacation time , SLovenia and Croatia definitely worth a visit.
@jennifer S- thanks for the great updates.i believe from ny there is a direct flight to jnb. I am planning a stopover in either ist or bkk. Hope to score a business class ticket with frequent flyer,,,otherwise, I will go economy,,I usually travel shoulder season, for this trip, probably jan to April…what Italian does not like wine?,,thanks again, for the information.
@ Scott- good one
@jane s- I will keep u updated as I start to plan.