Hostels Aren’t Always the Cheapest Option — Here’s What to Look For Instead

When I started traveling on a tight budget, I thought hostels were the ultimate solution. Every blog I read praised them as the best option for backpackers and frugal adventurers. I imagined meeting fellow travelers in shared dorms, cooking group dinners, and paying just a few bucks a night.

But after visiting dozens of cities across several continents, I’ve realized something important: hostels aren’t always the cheapest option. In fact, in some places, they’re not even close.

Let’s break down why a hostel doesn’t always deliver the best value—and how you can make smarter choices without sacrificing your travel experience.

The Popularity (and Myth) of Hostels

Hostels have long been associated with budget travel. They offer dormitory-style accommodations, often with shared bathrooms and communal spaces. Many travelers love them for the social atmosphere and low nightly rates.

But here’s the catch—those “low rates” don’t always translate to better value. Once you factor in things like location, privacy, amenities, and additional costs, a hostel can actually cost you more than other options.

When Hostels Fall Short on Value

Let’s look at some real-world examples of where hostels might not be the best bang for your buck.

1. Overpriced for the Location
In some cities, especially in Europe and popular tourist hubs, a hostel can be centrally located—but they know it. That prime location drives up the price, sometimes matching or exceeding private rooms in guesthouses or budget hotels just a little farther out.

I know someone who once paid nearly $50 a night for a dorm bed in Amsterdam. Meanwhile, a private Airbnb with a kitchenette and free breakfast just 10 minutes outside the center was only $5 more. Hostels in that case didn’t save any money—and they had to deal with snoring strangers.

2. Hidden Costs Add Up
Many hostels charge for extras like towel rentals, locker keys, or even breakfast. These costs can sneak up on you. And if the kitchen isn’t fully equipped, you may end up spending more on eating out.

Some hostels also require deposits for key cards or restrict check-in hours. These little inconveniences can cause frustration and even cost more in time and money.

3. Lack of Privacy or Sleep
If you’ve stayed in dorm-style hostels, you know the sleep struggle is real. Between midnight arrivals, loud roommates, and early risers rustling plastic bags, getting solid rest can be tough. If you end up exhausted, it affects your whole trip.

Sometimes, paying just a little more for a private room in a guesthouse or budget hotel makes a world of difference in your comfort and energy. Not to mention the value of having your own bathroom.

When Hostels Still Make Sense

Now, don’t get me wrong—hostels aren’t all bad. In fact, they can still be a great choice in the right setting.

If you’re traveling solo and want to meet other people, hostels offer a built-in social scene. Many hostels host group dinners, pub crawls, or walking tours. That sense of community can be worth a slightly higher price.

They also make sense in places where private rooms or apartments are significantly more expensive. Southeast Asia and parts of South America still offer incredibly cheap hostels where you get a lot for your money.

But again, it comes down to value—not just the headline price.

What to Look for Instead of Hostels

So what should you look for if a hostel doesn’t fit your needs or budget? There are plenty of options that offer better value, privacy, and comfort—sometimes at the same price.

1. Guesthouses and B&Bs
Guesthouses are often family-run, cozy, and come with perks like free breakfast, local advice, and fewer guests. You might not have the social scene of a hostel, but you’ll likely sleep better and feel more at home.

2. Airbnb or Private Rentals
In many cities, a small studio or private room in an Airbnb can be cheaper than a bed in a shared hostel dorm. Plus, you get a kitchen, your own space, and sometimes even laundry—huge perks for longer stays.

3. Budget Hotels
Many budget hotel chains like Ibis Budget, Motel One, or local equivalents offer basic but clean and private accommodations. They often have better soundproofing and private bathrooms compared to hostels, and if you book early, they can be surprisingly affordable.

How to Compare Value the Right Way

It’s not just about where you stay—it’s about how you choose. Use comparison tools like Hostelworld, Booking.com, and Airbnb side by side. Filter by price, location, amenities, and reviews. Don’t just assume a hostel is the cheapest. Sometimes, they aren’t even in the top three best options.

Also, factor in things like:

• Kitchen access: Can you cook your own meals?
• Breakfast included: Will that save you on food?
• Location: Is it walkable, or will you spend more on transportation?
• Wi-Fi and comfort: Are you working remotely or just browsing at night?

These small differences can dramatically impact your experience and overall travel budget.

My Final Thoughts on Hostels and Travel Value

Hostels still have their place in the world of budget travel. They can be fun, affordable, and a great way to meet fellow travelers. But they’re not always the cheapest, and definitely not always the best value.

What matters most is being flexible and doing your homework. Don’t get stuck on the idea that hostels are the only budget option. Sometimes, paying just a few extra dollars for more comfort, privacy, and convenience is worth every penny.

So next time you’re planning a trip, check all your options. Compare prices and amenities, and be honest about what kind of experience you want. Whether it’s a hostel, guesthouse, or tiny Airbnb, the best choice is the one that gives you the most value—not just the lowest price.