Backpacking is a term used to denote a form of low-cost independent international travel, differentiating it from other forms of tourism notably by the following typical attributes: minimal budget use, longer duration traveling, use of public transport and multiple destinations/countries. The origin of the name comes from the backpacks that budget travelers generally carry in the interests of mobility and flexibility.
Many commentators see backpacking as descriptive, not only of low-cost travel, but of the culture and philosophy often associated with it especially anti or trans-nationalism as well as a romanticization of wanderlust and a desire for "authentic" contact with local culture.
Advantages
In their defense, some backpackers say that budget travel pumps money into the economies of Third World countries, increasing their standard of living and creating jobs, and doing this in a way that is inherently more egalitarian than mainstream tour companies, who often operate with minimal contact with third party vendors or average citizens. Backpacking in comparison, frequently makes use of local food vendors, merchants and accommodations, and thus does more to benefit the local economy. The lower cost to the budget-conscious young Western tourist and the increased patronage to local merchants actually makes the economics of backpacking a win-win situation in many cases.
Backpackers are accused of traveling to exotic places only to associate with other backpackers. That perception is probably correct but requires some explanation. Generally backpackers are from developed countries, speak fluent English (even if from a non-English speaking country). When these backpackers arrive in developing countries they congregate at the hostels and guesthouses in the center of town where they tend to not blend in. In these areas the best English speakers among the locals tend to be touts who will prey upon the backpackers to visit the factories that they "own", to buy jewels to smuggle back and resell in their home countries, to purchase their services as a "guide" and to undertake illegal activities such as gambling, prostitution and drug use.
Most backpackers would like to interact with locals, but have a hard time fending off the touts, as bargaining and negotiating hassle are key factors of backpacking in parts of the world. Locals with the intent of approaching a backpacker are generally not as aggressive as the touts. Backpackers would consider it obtrusive to approach a local in English and ask to join the local in their home for dinner for instance. The inability to travel beyond the areas covered by public transportation further strain the situation.
Destinations
It is worth noting that there is a notable difference between backpacking travel in the developed world, typically Australia, New Zealand, North America and Europe where hostels are commonly used, than in the developing world, typically South and South-East Asia, Africa and Latin America. In such developing nations travel is cheaper, but often harder. Equally where backpacking is popular, whole industries have established to tend to the needs of backpackers offering services to make their lives easier (laundry, visa applications, train tickets) and goods from 'home' countries not commonly available such as Falafel for Israelis, Marmite/vegemite for British/Australian. Plus bars/restaurants showing sporting events from 'back home' and bootleg copies of movies. Well know examples of such places would be the Khaosan Road in Bangkok, Anjuna in Goa and Antigua in Guatemala. In backpacker hot-spots, many bars and restaurants are set up primary for backpackers with few locals (Or even expatriates) patronizing them - this again fosters the social aspect of backpacking travel.
Classically, Western Europe is a very common backpacker destination because of the availability of public transport and intercity transport and the large number of hostels and other budget accommodations, not to mention the immense sense of history and culture which permeates from this region. However, since the fall of the Berlin Wall and the dissolution of the Soviet states, Eastern Europe has become a rapidly growing destination for budget travelers. Originally this meant cities such as Prague and Budapest, but more recently Poland, Slovenia, Croatia, the Balkans, and the Baltic Republics have become a popular stops on the backpacking circuit
Long-term backpacker destinations are places in the developing world with low costs of living such as Goa (India), Essaouira (Morocco), or Thailand. Australia's East Coast, which is also colloquially known as the 'Goon Trail', is also a very popular destination for many backpackers, and particularly for those who enjoy non-stop beaches and party atmospheres.
As mentioned above, certain destinations are so popular on the backpacking circuit that some cities house "backpacker ghettos," whole districts where large numbers of travellers congregate to find cheap accommodation, street food, and share travel information. The most famous of these is the Khaosan Road area of downtown Bangkok.
It is true to say that most backpacking follows established routes with terms such as the 'gringo trail' in Latin America and the 'Banana Pancake' or trail' in Southeast Asia used. These routes and popular countries generally focus on three factors. And finally round the world air travel routing and airline hubs. It is easy to argue that Thailand's huge popularity is in no small measure a result of (its ease of travel and natural beauty aside) the fact it is an obvious stop-off between Europe and Australia. Consider the Philippines which has no overland connections, is not a major stop-off and holds similar attributes to Thailand is far less popular. The same is true of Eastern Europe's and Central America's proximity to affluent Western Europe and North America. Africa and notably, West Africa see relativity few backpackers since including them in a round-the-world ticket is difficult and expensive.