Cheapest Version of a Hotel: How to Save Big on Your Next Stay

Who really needs a minibar or fancy slippers waiting in their room? If you just want a safe place to crash, there's a whole world of ultra-cheap hotel options out there that most people skip right past. Some places cost less per night than one overpriced airport sandwich.

The truth is, the cheapest version of a hotel isn’t always what you’d expect. Instead of a big chains with fancy lobbies, you’ll often find rock-bottom prices at hostels, capsule hotels, and even some motels that focus on nothing but a clean bed and working Wi-Fi. Sometimes these places are right in the heart of the city, just hidden above a busy street. And no, you don’t have to share a room with twelve strangers if you don’t want to—lots of budget digs now have private options for just a bit more money.

Still, it’s not just about picking the cheapest price you see online. Some deals look amazing until you spot surprise fees for towels, late check-ins, or Wi-Fi. I’ve been burned before, especially while traveling with my daughter Elora—those ‘optional’ extras can add up fast. Knowing how to spot what’s included and what’s not can make or break your hotel budget.

• What Counts as the Cheapest Type of Hotel?
• Hostels, Capsules, and Pod Hotels: Low-Cost Options Explained
• The Hidden Fees Trap: Watch Out for Costs
• Booking Tricks to Get the Best Price
• Real Experiences: Do Super-Cheap Hotels Work for Families?

What Counts as the Cheapest Type of Hotel?

When folks search for the cheapest hotel, they aren’t all thinking about the same thing. The truth is, there’s a big range starting from basic hostels up to no-frills budget hotel chains. Don’t confuse a cheap hotel with a run-down place, though. These days, even the most affordable spots can surprise you with their cleanliness or handy locations if you know where to look.

So what actually qualifies as the cheapest kind of hotel?

• Hostels: Famous for dorm-style bunks, these are the classic go-to for backpackers. Globally, thousands of hostels charge less than $20 per night, especially in Asia, Central America, and parts of Eastern Europe. Many also offer private rooms at a bit higher but still very low rates.
• Capsule Hotels and Pod Hotels: Originally from Japan, you’ll get a tiny private space to sleep—sometimes just big enough to sit up. They pop up in major cities worldwide now, and nightly costs can dip as low as $10–$30.
• Budget Hotel Chains: Think brands like Motel 6 (US), easyHotel (Europe), or Tune Hotels (Asia). These cut corners on extras—often no breakfast, tiny rooms, and basic amenities—but keep rates down and locations super practical.
• Guesthouses and Pensions: In many countries, you’ll find small, family-run spots that are much cheaper than standard hotels. They usually have the basics and a more local vibe.

Here’s a simple comparison showing average prices for a night’s stay in budget accommodation, based on 2024 data:

Keep in mind, prices swing a lot depending on the country, season, and even the neighborhood. But if you’re really aiming for the lowest hotel price, hostels and capsules usually win out unless you’re somewhere with surprisingly cheap motels (like some spots in the US or Southeast Asia). Watch for reviews—saving money’s no good if the place is filthy or unsafe.

Hostels, Capsules, and Pod Hotels: Low-Cost Options Explained

If you’re searching for the cheapest hotel experience, you’ll probably run into three main types: hostels, capsule hotels, and pod hotels. These aren’t just for college backpackers anymore. Grownups, business travelers, and even families use these budget options when every dollar counts.

Hostels are the OG budget spot. Most people picture bunk beds in a shared dorm, and that’s common, but lots of hostels offer private rooms for a bit more. Hostels almost always have free Wi-Fi, basic kitchens, and big lockers for your stuff. Some even offer free breakfast. If you’re okay with skipping the private bathroom, you can get a bed in a major city for as little as $15 a night.

Capsule hotels started in Japan and they’re pretty unique: you get a personal sleeping pod—just enough room to sleep and squeeze in your bag. You’ll usually find shared bathrooms and maybe a lounge. The cool part? These places are spotless, modern, and safe, but you do have to be fine with less space. Some places even rent by the hour (handy if you land super early or late).

Pod hotels are the Western version of the capsule idea. You get a tiny (but private) room, usually with a single or small double bed and a little storage space. Some pod hotels offer TV and sleek, high-tech lighting. You’ll pay a bit more than in Asian-style capsule hotels, but you do get more privacy. Perfect if you want cheap but can’t handle the idea of a dorm room or a shared pod.

• Hostels are everywhere—think Paris, New York, Sydney, or even tiny mountain towns.
• Capsule hotels are mostly in Japan, but some are popping up in Singapore, Korea, and Kuala Lumpur.
• Pod hotels are catching on fast in cities like London and New York, usually near the action.

The best part: these places often have solid security, digital check-in, and a steady crowd of travelers happy to swap tips. If you’re just after a safe, basic place to sleep and shower, one of these low-cost options beats blowing your budget on hotel frills you’ll never use.

The Hidden Fees Trap: Watch Out for Costs

That too-good-to-be-true price for a cheapest hotel room? Yeah, there’s usually a catch. Hotels and hostels love to show off a super low nightly rate, but you really need to look deeper before you click “book.” Sneaky fees can pop up everywhere, and trust me—they add up fast.

The most common surprise is the “resort fee.” You can find these at budget spots, not just fancy resorts. It’s basically a daily charge that covers stuff you’d think would be included, like Wi-Fi, use of the gym, or even just the privilege of having clean towels. I once booked a $30 room in Las Vegas, only to get hit with a $28 resort fee at check-in. Ouch.

A lot of hostels and capsule hotels charge extra for basics, too. You might have to pay for:

• Sheets or bedding (yes, really)
• Towels—sometimes even per towel, per day
• Locker rental for your stuff
• Breakfast, if it isn’t included
• Late check-in or late check-out

Another classic: city tax or occupancy fees. European cities are famous for tacking on a “tourist tax” at the front desk, which can run a few euros per person, per night, and these are rarely included in your booking site total. In some US cities, there’s also a ‘lodging tax’ that jumps on at the end of the bill.

If you see a killer deal on a booking site, try this: Click through to the final payment page and see what your total is, not just the first number you see. And if something looks off, message or call the hotel to ask (and get it in writing).

Traveling with family or a buddy? Some places count extra guests for a fee—not just adults, but even kids. I learned this the frustrating way when Elora was little; always double-check the fine print for “per person, per night” charges so you’re not shocked at check-in.

The bottom line: the cheapest room on paper isn’t always the cheapest stay. Take a few extra minutes to hunt down every fee, so you really know what you’re paying before you hand over your card.

Booking Tricks to Get the Best Price

If you want to land the absolute lowest price for a night’s stay, a few insider moves make a big difference. Don’t just show up and hope for the best—seriously, that’s the easiest way to pay more or get stuck in a room nobody else wanted! Here are some tried-and-tested tricks that I use whenever I’m hunting for a true cheapest hotel deal, especially when traveling with my daughter.

• Search Across Different Platforms: Never trust one website. The same exact room can show up at wildly different prices on Booking.com, Hostelworld, Agoda, and direct on the hotel’s site. Google even helps you compare prices—but dig a little deeper for secret deals on lesser-known sites.
• Try Private Browsing Mode: Some hotel and booking sites use your browsing history to jack up prices if you check the same room repeatedly. Use Incognito mode or clear your cookies—sometimes you’ll see the price drop $10–$30 just by doing this.
• Book Last-Minute (Sometimes): If you’re flexible, same-day and last-minute rates can be a huge bargain, especially in bigger cities where rooms go unsold. Apps like HotelTonight or even direct calls to a motel front desk often shave off a chunk of the price.
• Contact the Hotel Directly: After you spot a deal online, call or email the property to ask if they’ll match (or beat) the price—especially if you’re staying more than one night. Small hostels and indie hotels can throw in free perks or a better rate just to avoid online booking site fees.
• Avoid Peak Season and Weekends: Prices shoot up during school holidays, weekends, and big events. Even shifting your dates by one or two nights can cut the bill in half, and weekday stays are often way cheaper.

Let’s see what this means for your wallet. Here’s a peek at direct savings you can score using these tricks vs. just booking the first price you see:

When I was in Boston last February, I snagged a room for $38 that was showing online for $63—just by calling the desk after spotting the digital rate. Not kidding. The best savings always go to the people who ask, compare, and play a bit with their search technique. So next time, mix these tricks together—and let the savings pay for more food, activities, or, if you’re lucky, an extra night on your trip.

Real Experiences: Do Super-Cheap Hotels Work for Families?

If you're traveling as a family, staying at the cheapest hotel around sounds tempting—until you picture a tiny bunkroom or weirdly sticky shared showers. But surprisingly, some wallet-friendly stays do work out if you know what to look for.

When I went to Berlin with Elora, we stayed in a budget hotel chain that gave us a private room with two beds, clean bathrooms, and breakfast for less than fifty bucks a night. It wasn’t fancy, but it felt safe and had decent reviews from other families on big booking sites. Chains like ibis budget, Motel One, and easyHotel have popped up in big cities all over Europe, pushing family-friendly stays into super-low price brackets without dumping you in a scary neighborhood.

Hostels are still popular for groups on a budget, and lots now have ‘family rooms’ with private bathrooms. You’ll usually find things like a communal kitchen, game area, and sometimes even laundry. But pay close attention to noise reviews—it’s no fun when someone’s hostel party keeps an overtired kid awake all night.

Capsule or pod hotels are a different story. Most in Asia are meant for solo travelers—not great for families, since there’s no space for a stroller or room to play. But in places like Japan and Singapore, family pods (basically two giant capsules joined together) are popping up, and some even have playrooms nearby to keep kids busy.

Price differences can be shocking. Check out this quick side-by-side from early 2025 for a family of three in Bangkok—each price is for a private room for one night, on average:

Tip: Always read the reviews about cleanliness, actual vs. advertised room size, and safety. Look for photos from guests (not just the hotel) to spot any surprises. And double-check for surprise fees for children’s bedding or breakfast—sometimes kids over six aren’t included in the base price.

If your family is cool with basics like simple beds and no frills, these options make travel possible on almost any budget. But the peace of mind comes from reading the fine print before you swipe your card. We’ve had good luck by picking places with at least an 8.0 rating (out of 10) on big booking sites, which weeds out a lot of the sketchy ones.