Arequipa's compact historic center lets you walk between Plaza de Armas, the Santa Catalina Monastery, San Lázaro, and the Yanahuara viewpoint, which keeps transport costs near zero on most days. Registered yellow-plate taxis (plates starting with 'A') are the safest flat-rate option versus unmarked cabs; collective taxis shared on fixed routes are cheaper still for cross-city trips.
Hostels and budget guesthouses cluster around Calle Jerusalén and the historic center for $10–$25/night, while staying further out (Selva Alegre, Cayma) lowers room rates but adds taxi rides. Shoulder months (March–April, October–November) cut hotel and tour prices versus the May–September peak while keeping dry-day weather.