Hungary is a very interesting country, with an amazing history. And it's cheaper than most Western European countries! I ended up spending a few months in Budapest and for good reason. Backpacking is a very rewarding experience, and the people you meet will always leave an impression.
Local Language: Hungarian - Older Hungarians may speak German, younger Hungarians generally speak English well.
Visa Requirements: Canadians are allowed in Hungary for 90 days without a visa.
Health Risks:None - But the low cost of alcohol may increase the risk of hangovers.
Costs: Hungary is much cheaper than western European countries, however prices are steadily rising. Outside of Budapest prices drop dramatically. Budget at least $35-$50 Canadian a day (depending of course on your level of comfort).

I first went to Hungary in 1999 on my first backpacking trip through Europe. I was very nervous at first, mainly because the train I hopped on at the last minute had a final destination of Belgrade, which was being bombed by NATO at the time. Luckily, I hadn't jumped on the wrong train and I ended up in Budapest after a short three hour train ride from Vienna.
It was definitely different than the rest of the countries I had so far seen, and it was my first time in an Eastern European country. When I finally got settled in to a hostel, I found out about a huge fireworks display to take place that evening, in celebration of Hungary's St. Stephen. It was an amazing display. I has also been to Geneva's large firework festival, said to be the largest in the world, but the Hungarians blew away everything I saw in Switzerland. All the bridges were streaming sparks into the river, and the display last for most of the evening.
In 2002 I ended up spending a couple of months living in Budapest, and got to know the city quite well. I had an apartment right downtown, and quickly learned about the Hungarian people and culture. I spent a lot of time going to the different museums (the best being the House of Terror) and finding out about the local night spots.
Hungary is well worth a visit, and I can't even begin to describe all of my experiences there. You've got to see it for yourself. Anytime someone asks me where they should go if they backpack Europe, Hungary is top of my list.
Finding a hotel in Budapest isn't difficult - It's generally cheaper than Western Europe, but if you're looking to spend a lot of money you can. The hotel industry is booming there right now, and accommodation is plentiful. Click the links below to find out about some of the cheapest hotels in Hungary.
Hostels
Hostels in Balaton
Hostels in Budapest
Hostels in Kaposujlak
Hostels in Pecs
Hostels in Siofok
Hotels
Budapest is the capital city of Hungary and is actually divided into two sections - Buda and Pest, separated by the Danube river but connected by several bridges. Buda is the hilly side, and Pest is the flat, more industrial, side. Chances are you'll end up staying in Pest, as that's the main downtown area.
For Budapest and Hungarian travel guidebooks, check here:
Budapest and Hungarian Guidebooks
Budapest has several train stations, though if you're coming from the West (i.e. Vienna) you'll most likely end up arriving at Keleti stations. Other stations include Deli (on the Buda side, near Moskva Ter) and Nyugati which is closer to the heart of Budapest.
Eurail passes cover Hungary, and as far as I know there aren't any extra fees associated with it. You might want to make a reservation though, as the trains do fill up in the summer. Find out more about Eurail and trains passes here:
Cheap Train and Eurail Passes
For more information about the Hungarian rail system itself, click here:
http://www.mav.hu/
For car rentals in Hungary try:
Most flights to Hungary arrive in Budapest's Ferhengy international airport. The airport is located quite a distance from the city, so you'll need to find a way from the airport to downtown Budapest. Taxi's, while cheaper than other Western countries can add up. I recommend using the airport shuttle, which will drop you off and pick you up wherever you are for a very cheap price, around $10 Canadian. You can also choose to take public transportation, but you'll need to take a bus and then a subway train to get downtown. It's cheaper but can be a long trip.
For flights to Budapest and Hungary, check the link below. Air Canada may soon be introducing direct flights from Vancouver to Budapest and Toronto to Budapest. As it is right now, many flights only go as far as Vienna where you change planes.
Cheap flights to Budapest / Hungary
Hungarian is an extremely difficult language to master. It is very unique, and only bares a slight resemblance to Finnish. While most young people in Budapest speak English and/or German, outside of Budapest in the other Hungarian cities you may want to bring along a Hungarian dictionary.
Canuck Abroad's Hungarian Travel Dictionary

Overlooking the Danube in Budapest, Hungary
Budapest Tourism - The official Budapest tourist site.
Budapest for Travelers - Offers information about various sites and general information for traveling to Budapest.
Please choose from the following sections:
| Travel Gear Travel gear you shouldn't leave home without! | Planning an Itinerary Plans are only made to be broken. | What to Pack What you need, and what you don't. |
| Costs and Money Issues Budget, budget, budget. | Saving Money and Discounts Great ways to cut costs. | Travel Guide Books The best investment you'll make, guaranteed. |