Many budget savvy travelers stay in hostels thinking it's a frugal way to stretch their dollar. However, this is not always the case. If saving money is your driving force then don’t overlook hotels.
Granted in general, hostels are less expensive than hotels. However, it pays to do a little research. Recently, I priced a private room hostel in Chicago. Then I priced a comparative hotel in the same location. Both offered free wi-fi, but the hostel had an added bonus of a free continental breakfast. Shockingly, the hotel was 50 USD cheaper than the hostel. For 50 USD, I can do much better than a continental breakfast and still save money. In fact, the 50 USD savings is more than the average priced hostel in Europe. Subsequently, I moved across the country to Paris, France and compared a hostel vs. hotel. Both establishments with similar ratings and amenities like free breakfast. Once more, I found the hotel a better bargain saving 11.10 EUR per night.
There are many assumptions surrounding hostels just don’t assume they are always cheaper than a hotel. It pays to compare, literally!