Hostels vs Hotels vs Apartments: Which Actually Saves You Money

Updated April 2026 | 5 min read

Hostels vs Hotels vs Apartments at a glance

The Real Cost Comparison Nobody Does Properly

Every travel budget guide tells you to stay in hostels to save money. Most of them are wrong, or at least incomplete. After booking all three types across 15 countries over the past four years, I have found that the cheapest option depends entirely on where you are, how long you are staying, and whether you are traveling solo or as a couple.

Here is the actual math I wish someone had shown me before I booked a hostel dorm bed in Barcelona for 45 EUR a night when a private hotel room was 62 EUR.

When Hostels Actually Save Money

Hostels make financial sense in exactly two scenarios: you are a solo traveler in an expensive city, or you want to meet people and the social element has value beyond the price.

In Tokyo, a capsule hotel or hostel dorm runs 2,500-4,000 JPY (about 17-27 USD) per night. The cheapest business hotel is 6,000-8,000 JPY. That gap is real and meaningful over a two-week trip. Same story in Zurich, where hostel dorms run 45-55 CHF while even budget hotels start at 150 CHF.

In Southeast Asia, the math flips completely. A private room at a hostel in Bangkok costs 600-900 THB (17-26 USD). A clean hotel with AC and breakfast is 800-1,200 THB. The 5-10 USD difference is not worth the trade-offs in privacy and sleep quality.

For couples, hostels almost never make sense. Two dorm beds cost more than a private hotel room in most destinations outside of Scandinavia and Switzerland.

The Hotel Sweet Spot Most People Miss

Mid-range hotels in the 60-120 USD range are the most underrated accommodation option in travel. They are not exciting enough for budget blogs or luxury blogs, so they get ignored.

In practice, this range gets you a private room with breakfast included in most of Europe, a genuinely nice room in Southeast Asia, and a clean business hotel in Japan. The included breakfast alone saves 8-15 USD per person per day, which adds up fast.

My go-to strategy: book 3-star hotels on Booking.com with the “breakfast included” filter. Sort by guest rating, not price. The difference between a 7.5-rated and 8.5-rated hotel in this range is usually only 10-15 USD per night, but the experience gap is enormous.

When Apartments Win (and When They Do Not)

Apartments and Airbnbs have one clear advantage: a kitchen. If you are staying 4 or more nights in an expensive food city like London, Paris, or Zurich, cooking some meals saves real money. I spent 3 weeks in an Airbnb in Rome in 2022 and the kitchen saved us roughly 30-40 EUR per day on breakfast and occasional dinners.

The hidden costs are real though. Airbnb cleaning fees average 75-100 USD per booking in major European cities. Service fees add 14-16% on top of the listed price. So a listing that shows 80 EUR per night actually costs 100-110 EUR after fees for a 4-night stay. For a 1-2 night stay, the per-night cost can double.

Apartments also lack the daily housekeeping, reception desk for luggage storage, and concierge recommendations that even budget hotels provide. After a long travel day, I want to drop my bags and walk straight out, not coordinate key pickup from a lockbox across town.

The Destination Cost Matrix

Based on my actual bookings, here is how the three options compare in cities I have visited:

In Japan, hotels win for couples and solo travelers who want convenience. Capsule hotels are a fun experience for 1-2 nights. Apartments only make sense for week-long stays in Tokyo or Osaka. Hostels work for solo budget travelers who want to meet people.

In Italy, apartments win for groups of 3 or more and stays over 4 nights. Hotels win for couples doing city-hopping (Rome-Florence-Venice by train). The agriturismo option, which is essentially a farm stay, offers the best value in Tuscany and Umbria at 80-120 EUR with breakfast and sometimes dinner included.

In Southeast Asia, hotels win almost universally. The price gap between hotels and hostels is too small to justify the trade-offs. In Bali, a villa with a private pool costs 40-60 USD per night, which is often less than a private hostel room in European cities.

In New Zealand, campervans and holiday parks beat all three options for road trips. We spent 3 weeks in a campervan and averaged 35-50 NZD per night at holiday parks, compared to 100-150 NZD for the cheapest motels.

My Booking Strategy by Trip Type

For city trips under 3 nights, I book hotels. No question. The convenience, breakfast, and luggage storage are worth the slight premium over apartments.

For stays of 4 to 7 nights in one city, I compare hotels and apartments. If the apartment is genuinely cheaper after all fees and has a real kitchen (not a microwave), it wins.

For 2-week or longer trips, I mix everything. Hotels for the first and last nights when I need flexibility, an apartment in the longest-stay city, and maybe a hostel for 1-2 nights in a party city where I want to meet people.

For group trips (3 or more people), apartments almost always win. Splitting a 3-bedroom apartment in Lisbon at 150 EUR per night is 50 EUR per person, compared to 80 EUR each for separate hotel rooms.

The Booking Platform That Actually Matters

Booking.com has the largest hotel inventory and the most flexible cancellation policies. I use it for 80% of hotel bookings. The Genius loyalty program drops prices 10-15% after two stays.

For apartments, I cross-check Airbnb and Booking.com apartments. Booking.com apartments show the total price upfront (no hidden cleaning fees added at checkout), which makes comparison easier.

For hostels, Hostelworld has the best inventory and reviews. Sort by rating, not price, and filter for “18+ only” if you want to avoid party hostels.

The one platform I would skip: Expedia bundles. The “flight + hotel” deals look good until you realize you cannot cancel the hotel separately, and the individual prices are usually not actually discounted.

Plan Your Trip

Search flights on Aviasales and compare hotels on Hotellook. I use Hostelworld for hostel bookings and Airalo eSIM for data everywhere I go.

Keep Reading

If you are planning accommodation on a budget, check out my F1 accommodation budget breakdown for real costs across race weekends. For apartment-style stays in Italy, see what to eat in each Italian region (food is half the reason to book a kitchen). My credit card points strategy covers how to use hotel loyalty points effectively.

Frequently Asked Questions

Are hostels actually cheaper than hotels?

It depends on where you are and how many people are traveling. In expensive cities like Zurich, hostel dorms run 45-55 CHF while budget hotels start at 150 CHF, so the gap is real. In Southeast Asia, the difference between a private hostel room and a clean hotel with AC and breakfast is only 5-10 USD, which is small enough that the privacy and sleep quality trade-off is not worth it. For couples, two dorm beds cost more than a private hotel room in most destinations outside Scandinavia and Switzerland.

When do Airbnb apartments save money over hotels?

Apartments make sense when you are staying 4 or more nights in an expensive food city where cooking some meals genuinely saves money. The hidden costs are real though: Airbnb cleaning fees average 75-100 USD per booking in major European cities, and service fees add 14-16% on top of the listed price. A listing that shows 80 EUR per night can actually cost 100-110 EUR after fees for a 4-night stay, and for a 1-2 night stay the per-night cost can double.

Which accommodation type is best for couples traveling in Europe?

For couples on short city trips under 3 nights, hotels win on convenience, breakfast, and luggage storage. For stays of 4 or more nights in one city, apartments can come out ahead once you account for kitchen savings, provided the apartment is genuinely cheaper after all fees and has a real kitchen. Hotels are the clear pick for city-hopping trips, such as Rome to Florence to Venice by train, where you want flexibility and do not want to coordinate separate apartment key pickups in each city.

What is the best booking platform for comparing accommodation prices?

For hotels, Booking.com has the largest inventory and the most flexible cancellation policies, and the Genius loyalty program drops prices 10-15% after two stays. For apartments, cross-checking Airbnb and Booking.com is useful because Booking.com shows the total price upfront without hidden cleaning fees added at checkout. For hostels, Hostelworld has the best inventory and reviews; sorting by rating rather than price and filtering for 18+ only avoids party hostels.

Plan your own trip: guides I actually use

Cards, lounges & insurance:

• Best Airport Lounges I Have Actually Used — From Changi to Istanbul
• Is Priority Pass Worth It in 2026 — My Honest Review After 15 Airports
• Best Travel Credit Cards for 2026: The Cards I Actually Use and Why
• Best Travel Insurance for 2026: What I Actually Recommend After 15 International Trips
• The Credit Card Points Strategy That Funded $15,000 of Travel

Finding cheap flights:

• Going vs Dollar Flight Club vs Thrifty Traveler: Which Flight Deal Service Is Worth It in 2026?
• When to Book Flights by Region — The Booking Windows That Actually Save Money
• How to Find Error Fares and Flight Deals — The Services I Actually Use
• Google Flights vs Skyscanner vs Momondo — Which Actually Finds the Cheapest Flights

Staying connected abroad:

• Best VPN for Travel 2026 — NordVPN vs Surfshark and Why You Need One
• Best eSIM for Travel 2026 — Holafly vs Airalo vs Nomad

Travel gear I actually use:

• Best Portable Chargers for Travel in 2026: Which Size You Actually Need
• My Exact Travel Tech Setup After 15 International Trips
• Best Noise-Canceling Headphones for Travel in 2026: Tested on 40+ Flights
• Best Travel Backpacks for 2026: The 5 I Have Actually Used
• Phone Photography Tips for Travel: How to Take Great Photos With Just Your iPhone

Written by Jenna Fattah

I have visited 25+ countries across 6 continents, attended 7 Formula 1 races, and spent 4 years writing about what actually works and what I would do differently. Every recommendation on this site comes from trips I planned and paid for myself. Read more about me