Multi-currency & travel: Hostel vs hotel: which saves more on your trip?
In the hostel vs hotel choice, hostels usually win on price, especially once you count the kitchen and free extras. In a worked example, a week in a hostel dorm costs 210, against 630 in a budget hotel.
By Wealtie Team · 3 min read
Key takeaways
- In hostel vs hotel comparisons, a dorm bed is usually the cheapest option by far.
- Hostel kitchens can save as much on food as the room itself.
- A private room in a hostel sits between the two on price and privacy.
- Hotels can be better value for couples, families and short city breaks.
Hostel vs hotel: what's the real difference in cost?
Hostels and hotels both give you a bed for the night, but they work very differently. In a hostel, you usually rent a bed in a shared dorm, with shared bathrooms, a communal kitchen and common areas. Many hostels also have private rooms. In a hotel, you get your own room and bathroom, but rarely a kitchen, and extras like breakfast often cost more.
The headline price is the biggest difference. Here's a worked example for seven nights in a mid-priced city, in round numbers that work in any currency:
| Where you stay | Seven nights |
|---|---|
| Hostel dorm bed, 30 a night | 210 |
| Hostel private room, 60 a night | 420 |
| Budget hotel, 90 a night | 630 |
A dorm bed costs a third of the hotel room, saving 420 over the week. Even a private room in a hostel saves 210. Prices vary a lot by city and season, so check both on the dates you're travelling, but the pattern holds in most places.
What about food and extras?
The room price is only part of the story. Most hostels have a shared kitchen, so you can make breakfast and some dinners yourself instead of eating out for every meal. If eating out costs 30 a day and cooking half your meals brings that to 15, you save another 105 over a week. For a long trip, that adds up to more than many travellers expect.
Hostels also tend to include extras that hotels charge for, like free walking tours, luggage storage, lockers, laundry machines and social events. Hotels may include breakfast, a private bathroom, daily cleaning and a quieter night's sleep. Add up what you'd use from each before comparing. How to set a daily travel budget covers working out your costs per day.
When is a hostel the better choice?
Travelling solo
Hostels are designed for solo travellers. Dorms and common rooms make it easy to meet people, find travel companions and share tips. How to budget for solo travel covers the other costs of going alone.
Long trips on a tight budget
On a backpacking trip of several weeks or months, the savings from dorms and kitchens can be the difference between a short trip and a long one. How to make a backpacking budget covers planning longer trips.
Expensive cities
In cities where hotels are very expensive, a hostel can make a visit affordable at all.
When is a hotel the better choice?
Couples and families
Two dorm beds at 30 each cost 60 a night, which may be close to a budget hotel's double room. For a family, a hotel room or holiday rental is often better value than several beds. How to save money on holiday rentals covers another option for groups.
Short trips and business travel
For a night or two, privacy and a good night's sleep may matter more than saving a little. Booking ahead and comparing sites keeps the price down. How to save money on hotels covers finding better rates.
Light sleepers
Shared dorms can be noisy, with people coming and going at all hours. If sleep matters, a private room or hotel is worth paying for.
Is a private room in a hostel worth it?
A private room in a hostel gives you your own space while keeping the kitchen, social areas and extras. It often costs less than a hotel, and some have their own bathroom. It's a good middle ground for couples, older travellers or anyone who wants the hostel atmosphere without a dorm.
How do you choose a good hostel?
Read recent reviews
Look for comments on cleanliness, security, noise and staff. Reviews from the last few months tell you more than the overall score.
Check the dorm size
Smaller dorms, like four or six beds, are quieter than large ones. Female-only dorms are common too.
Look for lockers and a kitchen
Lockers keep your things safe, and a kitchen is where much of the saving comes from. Make sure both are included.
Check the location
A cheap bed far from the centre can cost more once you add transport. Compare the total cost of staying there, including getting around.
How does Wealtie help you track accommodation costs?
Log each night's stay and your food spending in Wealtie as you go, using expense categories like accommodation, food and transport. If you're paying in another currency, Wealtie supports multiple currencies, so you can record costs in the local currency and still see your trip total. How to track a trip in Wealtie walks through setting it up.
Questions people ask
Usually, yes. In a worked example, a week in a hostel dorm cost 210, while a budget hotel cost 630 for the same nights.
No. Hostels welcome travellers of all ages, and many offer private rooms that suit couples, families and older travellers.
Yes, for many travellers. It gives you privacy while keeping the kitchen and extras, and often costs less than a hotel.
Hotels are often better value for couples and families, short trips and light sleepers who need a quiet private room.
This article is general information, not financial, tax or legal advice. Your situation is your own; check the numbers that apply to you before you act on them.
