Cheap, comfortable accommodation is important for budget travellers. Hostels and inexpensive lodging are not only a bed to rest and sleep in but also a great place to connect with other travellers, meet, experience, and save money as you travel around the world.
From Europe to Southeast Asia to South America, this guide will show you how to find affordable, quality hostels and budget accommodations that offer the best value, comfort, and atmosphere. Read more to find the Best hostel for your needs.
Why Choose Hostels & Budget Accommodations?
1. Affordability
Hostels and budget accommodations are significantly cheaper than hotels, allowing you to spend more on experiences, food, and activities.
2. Social Atmosphere
Many hostels provide common areas, group tours, and social events, making it easy to connect with fellow travellers.
3. Central Locations
Backpacker-friendly stays are usually located in the heart of major cities, making it convenient to explore on foot or via public transport.
4. Flexible Options
From dormitories and private rooms to unique capsule hostels and eco-lodges, there’s a budget accommodation option for every traveller.
1. Best Hostels & Budget Stays in Europe
Europe has some of the world’s best hostels, offering modern facilities, great locations, and vibrant social scenes.
Top Budget Hostels in Europe
- Free dinners and daily activities
- Central location near Las Ramblas
- The social atmosphere with bar crawls
- Famous for its lively bar and social vibe
- Located near Amsterdam Central Station
- Free breakfast and comfortable dorms
- Clean and modern facilities
- Excellent bar and common areas
- Close to Vienna’s main attractions
Budget Tip: Book directly through hostel websites to avoid extra booking fees and get discounts on extended stays.
2. Best Hostels & Budget Accommodations in Southeast Asia
Southeast Asia is famous for its affordable backpacker accommodations, often featuring rooftop bars, swimming pools, and beachfront locations.
Top Budget Hostels in Southeast Asia
- Popular among solo travellers
- Great location near Khao San Road
- Bar, pool, and social events
- Opposite the Royal Gardens in Siem Reap
- Saltwater pool and yoga classes
- Close to Angkor Wat temples
- Futuristic capsule-style beds
- Located in Canggu, a digital nomad hub
- Free breakfast and coworking spaces
Budget Tip: Many hostels offer longer-stay discounts if you stay in one place for a week or more.
3. Best Budget Accommodations in South America
South America offers fantastic, affordable stays for backpackers, from vibrant cities to remote jungles.
Top Budget Hostels in South America
- Famous for its party atmosphere
- Affordable dorms and private rooms
- Incredible views over Cusco
- Stylish design with coworking spaces
- Regular social events and salsa nights
- Close to El Poblado’s nightlife district
- Centrally located near major landmarks
- Weekly barbecues and city tours
- Lively bar and common areas
Budget Tip: Some hostels offer work-exchange programmes, such as volunteering in exchange for free accommodation.
4. Unique Budget Stays Around the World
For those looking for something different, here are some unique budget accommodations that offer an unforgettable experience.
- Eco-Friendly & Sustainable Hostels
- Tribal Hostel – Bali, Indonesia – An eco-conscious hostel built with bamboo, perfect for nature lovers.
- Green Elephant Hostel – Cape Town, South Africa – A sustainable backpacker lodge focusing on environmental initiatives.
- Capsule Hostels for Budget Travellers
- 9-Hour Capsule Hotel – Tokyo, Japan – A futuristic capsule hotel with minimalist sleeping pods.
- The Pod Sydney – Australia – A stylish capsule hostel offering privacy in a dorm-style setting.
- Hostels with Rooftop Pools
- Rodamon Riad – Marrakech, Morocco – A stunning hostel with a rooftop pool overlooking the city.
- The Yellow – Rome, Italy – Famous for its rooftop bar, live music, and vibrant social scene.
Budget Tip: If you want privacy without high prices, many hostels offer private rooms at a lower cost than hotels.
5. Tips for Finding the Best Budget Accommodation
Finding the perfect budget for a stay doesn’t have to be complicated. Here are some tips to help you save money and get the best experience:
Use Reliable Booking Platforms
- Hostelworld – Best for hostel reviews and ratings.
- Booking.com – Great for budget hotels and hostels with flexible cancellation policies.
- Couchsurfing – Free stays with locals for a unique cultural exchange.
Check Reviews & Ratings
Look for hostels with high cleanliness scores.
Read reviews on WiFi quality, location, and social atmosphere.
Avoid places with repeated complaints about security or staff issues.
Book in Advance for Popular Cities
In cities like Barcelona, London, and Tokyo, the best budget stays fill up fast—book at least a few weeks in advance to secure a spot.
Consider Alternative Accommodation
- Co-living Spaces – Perfect for long-term travellers and digital nomads.
- Work Exchange (Workaway & WWOOF) – Work a few hours a day in exchange for free accommodation.
- University Dormitories – Some universities rent out rooms at budget-friendly rates during summer.
Finding the Best Budget Accommodation for Backpacking
Choosing the right budget accommodation can enhance your travel experience by providing a comfortable stay, great social opportunities, and savings on accommodation costs. Whether you prefer party hostels, backpacking stays, capsule hotels, or work exchanges, there’s a budget-friendly option for every backpacker.
Quick Recap: Best Budget Stays for Backpackers
- Europe: Hostel One (Barcelona), Flying Pig (Amsterdam), Wombats (Vienna)
- Southeast Asia: Mad Monkey (Bangkok), Siem Reap Hostel, The Capsule Hotel (Bali)
- South America: Loki (Cusco), Selina (Medellín), Milhouse (Buenos Aires)
- Unique Stays: Capsule hotels, eco-hostels, and rooftop pool hostels
But this is nothing compared to the dread you face when trying to figure out which budget accommodation to choose to make your travelling experience so much more enjoyable, provide a comfortable stay, and allow you to have great social interaction while saving a ton on accommodation expenses. There’s a budget-friendly option for every backpacker, whether you’re into party hostels, eco-friendly bonanzas, capsule hotels, or work exchanges.
If you implement these money-saving tips and book the right hostels, you can travel longer, meet incredible people and see the world on a budget.
Happy Backpacking!