We are not in a rush and are planning to spend a month in Peru so we are trying to keep our costs down. We actually find when travelling to various countries, we like taking the local transit as it adds to the adventure -- we've had our share of chickens and other animals on buses. We travel fairly light with just our backpacks.
Just as an aside, our preferred way of visiting countries usually includes staying in non-party hostels or guest houses (try avoiding dorm rooms if possible - we're a 50ish couple so like to get our rest after an active day) and local transit but at the same time, we make sure we spend our money on things that we really want to do such as the 4-day Machu Picchu hike (already booked), fly over the Nazca lines, train ride to Huancayo, eat at Astrid y Gaston to name a few.
Thanks in advance and I'm sure I'll have more questions as we start firming up what we're planning to do.