After flights, accommodation is usually the biggest cost of a European trip, and it is paid every single night. Getting it right can save hundreds. In Part 5 of Europe on a Budget, we compare your options and share tips for finding places that are cheap without being grim.
Your main options
Hostels
Modern European hostels are very different from their old image. Many are clean, design-focused and well located, with shared kitchens, lockers, laundry and social events.
- Dorm beds are the cheapest choice, ideal for solo travellers on a tight budget.
- Private rooms in hostels are often cheaper than hotels and come with the same useful facilities. Great for couples and friends.
- Look for female-only dorms, smaller dorms and good reviews about cleanliness and noise.
Guesthouses and pensions
Family-run guesthouses, called pensions, pensiones, pensjonaty or similar names, offer simple private rooms, often with breakfast and local advice. They are common and good value in Southern, Central and Eastern Europe.
Apartments
Short-term rentals can make sense for families, groups or stays of four nights or more, because a kitchen lets you cook. But watch cleaning and service fees, which can make short stays expensive. Some cities have restricted short-term rentals, so check that listings look legitimate.
Budget hotels
Budget and chain hotels near stations or on the edge of the centre can be good value, especially for last-minute bookings and solo travellers who want privacy. Business hotels in some cities drop prices at weekends.
Other options
- Campsites often have cabins or bungalows, not just tent pitches.
- University residences in some cities rent rooms in summer.
- Monasteries and convents in parts of Italy and Spain offer simple, quiet rooms.
- Hospitality exchanges such as Couchsurfing are free but require trust, clear communication and careful checking of reviews.
Location: the trade-off that matters most
A cheap room far from the centre is not always a bargain. Add up:
- Daily transport costs to and from the centre.
- Time spent travelling each day.
- Safety walking back at night.
The sweet spot is often a neighbourhood just outside the main tourist zone but close to a metro, tram or main station. In compact old towns, being central can save you transport costs altogether.
How to read reviews
- Read recent reviews from the last few months.
- Search reviews for key words such as "clean", "noise", "safe", "bed bugs" and "hot water".
- Look at guest photos, not just professional ones.
- Check what reviewers from travellers like you say: solo, couple or family.
- Be wary of very high ratings with very few reviews.
Watch out for hidden costs
- City or tourist tax: many European cities charge a per-person, per-night tax, sometimes paid in cash at check-in and not always shown in the booking price.
- Cleaning and service fees on apartment rentals.
- Breakfast: hotel breakfasts can be overpriced compared with a café or bakery.
- Towels and linen may cost extra in some hostels.
- Late check-in fees at small guesthouses or apartments.
Money-saving booking tips
- Book early with free cancellation, then keep checking prices and rebook if they fall.
- Compare platforms and direct booking. Some properties offer a lower price or perks if you book directly.
- Stay longer. Some places offer weekly discounts.
- Travel midweek in leisure destinations, where weekend prices are higher.
- Use a night train or bus occasionally to save one night's rent (see Part 4).
Safety and comfort basics
- Use lockers and bring a small padlock for hostels.
- Carry earplugs and an eye mask.
- Keep valuables out of sight and make digital copies of documents.
- Check the exact address and how to get in before you arrive, especially for self-check-in properties.
In Part 6, we look at the most delicious way to save money: eating well for less.
Europe on a Budget: the full series
- Part 1: Plan Your Trip and Set a Budget
- Part 2: Visas, Insurance and Paperwork
- Part 3: Finding Cheap Flights
- Part 4: Trains, Buses and Rail Passes
- Part 5: Budget Accommodation (you are here)
- Part 6: Eat Well for Less
- Part 7: Free and Cheap Sightseeing
- Part 8: The Best-Value Cities
- Part 9: Money, Cards and Fees
- Part 10: A Two-Week Budget Itinerary
Prices, fares, fees and entry rules change often. Treat the ranges here as rough guides and check official websites before you book or travel.