Now that you have an overview of the costs and itinerary, let's look at the nuts and bolts of planning the trip. Today, we'll talk about transportation and altitude sickness.
Transportation
Peru, of course, is in the Andes mountain range. Going from Lima to Cusco requires a climb from sea level to 3,400 meters (11,155 feet). The drastic altitude change combined with sharply winding roads curving around the mountains can make the bus experience extremely nauseating. If you are sensitive to either motion sickness or altitude sickness, you might want to strongly consider flying instead of taking a bus. There is nothing more miserable than being stuck on a bus for 22 hours vomiting every half hour. Having said that, I have only vomited on one bus trip to Cusco (out of three), despite being somewhat motion sensitive--so the nausea is not a sure thing.
1. Bus. There are two main routes from Lima to Cusco.
a. The direct route (21-22 hours) goes through a town called Abancay. The first route is very winding and is much more likely to cause nausea and motion sickness.
b. The other route is to take a bus to Arequipa first (16 hours), then take another bus to Cusco (12 hours). Although the Arequipa route is longer, it breaks the trip up into two more manageable pieces and is a lot smoother.
The prices and schedule I quoted was for the busline Flores Hnos (short for Hermanos). They aren't the most luxurious company in the world, but they are cheap. Pros: Comfortable leather seats in their double decker Super Dorado service (first floor only) and price. Cons: Onboard bathroom is not cleaned during the 22 hour drive, which means it gets pretty rank after the 6th hour or so. I just hold it until we make pit stops.
In case that doesn't sound appealing to you, here are links to other bus services. I've never tried them.
Cruz del Sur Lima - Cusco = S/. 172.00
Tepsa Lima - Cusco = S/. 115.00
Civa Lima - Cusco = S/. 140.00
2. Plane.
Lan has several flights daily from Lima to Cusco. The flights last only 1 hour and 15-25 minutes. The prices is usually around US$ 250 one way, US$ 500 roundtrip. If you can afford it, this is the way to go. The rest of us take buses.
3. Colectivo
Shared taxis called "colectivos" are everywhere. They have set routes like a bus, but are cars or vans so they carry far fewer passengers and make fewer stops. The colectivo is the cheapest and fastest way to go from Cusco to Ollantaytambo (S/. 10.00 per passenger for 1.5 hour ride).
The colectivos to Ollantaytambo can be found in Cusco at a terminal called Los Pavitos.
4. Train: Peru Rail
There is only one way in to Machu Picchu and one way out: by train. From Cusco, the train to MP costs US$ 60.00 one way (cheapest fare called "Expedition"). From Ollantaytambo (a stop midway), the train to MP costs US$ 33.00. By getting to Ollantaytambo for only $4.00 in a colectivo, instead of $27.00 on a train, you save $23.00 per person. That may not be much, but if you're traveling in a big group, it does add up.
It is highly recommended that you make reservations online, especially if you are traveling in a large group or during the high season. They require that you scan and email your credit card (front and back), along with scans of your passports. Then they email you a PDF with the tickets you can print out.
If you are Peruvian, you can purchase a train ticket in the local cars for S/. 10.00 one way, upon presentation of the Peruvian ID car (DNI). The local cars have less legroom and do not serve refreshments. The tourist cars range from the Expedition prices ($33.00 one way) to the Hiram Bingham cars ($375 one way).
5. Taxis
Peruvian taxis do not have meters. The driver negotiates a fare with you based on number of passengers, weight of luggage, and destination. When you agree to the fare he offered and get into the taxi, you are expected to pay once you arrive at the destination.
Taxis in Peru LOVE to overcharge foreign tourists. To get an idea of a fair rate to your destination, ask a nearby vendor how much taxis usually charge to your destination. Then refuse to pay more than that when looking for a taxi. If they won't take you for the local, customary fare, go to the next taxi. Try at least three taxis before you give up.
In Cusco, a taxi from the bus station (or airport) to the colectivo station should not charge more than S/.5.00. Most other destinations in town are charged the standard S/. 3.50 fare.
More info:
Andean travel web: transport information in Peru
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