How to stick to your accommodation budget
April 22, 2009 in Money and Finance
No matter how carefully you shop around, the cost of accommodation will take up a major chunk of your travel or holiday budget. And with the bite of recession pushing us to stretch our travelling funds further this year, finding real value for money on your accommodation is even more important. Here’s how to open up the world of travel — even in the credit-crunch — by keeping the price of accommodation to a minimum.
Choose a hostel over a hotel
The stereotype of basic bunkhouses filled with drunken students has been replaced by a new breed of budget accommodation — the boutique or ‘flashpacking’ hostel. Catering to the increasing number of travelers looking for low prices but a higher standard of facilities, these hostels are a great alternative to hotels, even for those who wouldn’t necessarily consider themselves ‘backpackers’.
The new, chic properties offer such style and convenience that, aside from the prices and the dorms, they wouldn’t look out of place in a hotel (see London hostels like Palmers Lodge, housed in a restored mansion, or arty and unique Lisbon Lounge in the Portuguese capital).
Hostels can also have some great additional benefits, such as kitchens — try self-catering a few meals to avoid the expense of eating out every night.
Escape hidden costs
Traveling is full of hidden ‘extras,’ from airline taxes to insurance, that all add up to damage your budget — and this can also be the case when booking accommodation in advance. Head to HostelBookers to search and book your accommodation online — it’s the only independent booking website that doesn’t charge a booking fee.
In addition, watch out for currency hedging — some websites increase the conversion rate from a hostel’s local currency to earn themselves additional commission on every booking they receive.
Before you travel, it’s also a good idea to read reviews and ratings of the accommodation from other guests, or check out one of the increasing numbers of hostel videos available, to get a clear picture of what’s on offer. That way, there’ll be no nasty surprises when you arrive at your destination, and no need to dip into the emergency funds for another hostel!
Make time for research
Booking a bed at the really cheap hostels might not actually be the best idea. Instead, look carefully at the facilities on offer in each case — somewhere that includes internet and breakfast (and lunch if you help yourself to an extra roll) in the price of a room could actually work out cheapest overall.
Location is another important factor — hostels on the outskirts of a city are typically less expensive than those in the center, but using pricey public transport to and from the sights every day can make costs add up in the long run.
If you’re only staying in a destination for a few days, a hostel within walking distance of the sights could be better value, but it could also make sense to stay further out if the transport is both convenient and cheap — look out for city passes that offer entrance to top attractions and unlimited local travel.
Either way, a little research can make all the difference when it comes to real ‘value for money’!
This article was written by Ali Woolliams
Ali Woolliams is a travel writer who works for HostelBookers.com. When she's not furiously tapping away from her desk in London, she can been found with camera in hand, snapping her way around Eastern Europe or opining happily on her other great love: techo music.
Since November 2006 the Indie Travel Podcast has evolved into an independent travel hub with regular audio and video podcasts along with articles by travellers from all over the world. 
Hosts Craig and Linda Martin started travelling in February 2006 and have been to over 50 countries. They were 
ladycartel said on April 22, 2009
I would also recommend shopping around for your hostels since there are quite a few good booking sites out there each which their own set of good accommodations like hostelz or hostelsclub or hostelworld as well. It’s all about bargain shopping and hunting around for the best value. I agree that flashpacking hostels are becoming increasingly more popular but so are boutique hostels, but unfortunately you can’t find them in all exotic destinations, but mostly just the big cities. Also make sure linens and locks are included because those can be extra charges sometimes too which can be easily avoided by researching in advance.
jess said on April 24, 2009
I agree – shopping around is the best way to find the cheapest rates, and sorting it all out before you travel instead of just turning up means you will end up staying in a nicer hostel. I booked my holiday to Paris with Hostel bookers because they have no booking fees, but they also have a ‘lowest price guarantee’ – they said if you find the accomodation cheapest elsewhere they will refund the difference.
Johnny Vagabond said on February 6, 2010
In some parts of the world, camping may be an option. Some hotels will allow you to camp in the backyard or even on the roof for a fraction of the cost of room. I carry a *very* basic camping setup for this reason (1 man tent, sleeping bag and pad — total weight, 7 pounds)
bed and breakfast lockerbie said on February 21, 2010
Interesting article.
Based in south west scotland I know that we get more and more guest who said they actually tried to find a hostel within the area and were amazed there wasn’t one.
Many Mountain Bikers and walkers looking to get round different trails are looking for exactly this type of accommodation.
A good tip for areas that are without these “boutique or ‘flashpacking’ hostels” is this. If you use sites like laterooms or bookings.com then always check directly with the accommodation owner before booking on line as they will often “add” up to 15% to cover agency fees.
Also ask for discount for cash as accommodation providers sometimes can be paying up to 4% for using credit card services.
Derek Pennycook (Marketing)
Riverside Mill Bed and Breakfast – Lockerbie
Jonathan White said on May 13, 2010
Sticking to your budget as a long term traveler is almost impossible. It is often not the direct costs such as accommodation, but the unforeseen. You know that taxi that cost twice as much as originally thought. The extra visa costs. Always plan to spend 20% more on your holiday.
Ariel said on June 10, 2010
Yes that budget can take a beating, particularly in the first few months of travel. This is the learning experience and oh I wish I had the opportunity to read this and others articles so as to be forewarned. I overspent on my first month away, was ripped of in countries where I kept saying oh this is sooo cheap. Hey, listen and talk to people, there experience and knowledge will help you along your way with money to spare.
Ariel said on June 23, 2010
Ariel you are right Abbots Lagoon is just gorgeous. It is very much like my beloved Australia though I would add that the photograph of the Morning in Point Reyes National Seashore is stunning. This whole area, I am informed, is equally as beautiful. It has a rugged coastline where the sea breaks against the rocks. It is also home to 1000 species of plants and animals.