Hostel vs. Hotel: What’s the Difference?

If you’re planning a trip and trying to decide between a hostel and a hotel, you’re not alone.

With rising travel costs and inflation pushing up accommodation prices everywhere, more people are turning to hostels as a cheaper alternative to hotels. But while hostels can be budget-friendly, they are not hotels, and expecting hotel-like service in a hostel can lead to disappointment.

When I was volunteering long-term in a hostel in Riga, I saw this happen many times. Some guests would book a private room in a hostel expecting hotel-style amenities (think daily housekeeping, a minibar, or complimentary toiletries…) and then leave negative reviews when those things weren’t provided. 

You could spot these people from a mile away, and they would many times leave frustrated because the experience wasn’t what they had imagined. Sometimes they would even come and demand refunds because they hadn’t realised they were booking into a hostel. Got lots of good practice for my customer service face I guess…

That’s exactly why I wrote this guide—to help travellers understand the key differences between hostels and hotels so they can make the right choice for their budget and expectations.

In this post, we’ll compare hostels vs. hotels in terms of price, social experience, and amenities, so you’ll know exactly what to expect before you book.

Price Comparison: Is a Hostel Always Cheaper?

One of the biggest reasons travellers choose hostels is cost, but hostels are not always the cheapest option.

If you’re staying in a shared dormitory, then yes, hostels are significantly cheaper than hotels because you’re only paying for a bed, not an entire room. This is one of the reasons hostels are a good choice from a sustainability viewpoint too.

Hotels, on the other hand, charge per room. Which means if you’re travelling solo, a hotel is likely to be significantly more expensive than having a bed in a shared room. However, if you’re travelling with friends or family, the cost of a budget hotel split between a group might not be that much higher than a private hostel room (or booking an entire dormitory for your party).

Private rooms in hostels can sometimes be more expensive than the cheapest hotel rooms—especially in high-demand cities like Paris or London, where even budget accommodation comes at a premium. Looking through platforms that feature both hostels and hotels (like Booking.com) can give you an idea how these compare. Choosing the right booking platform can also make a difference!

If price is your main concern, a hostel dorm bed is usually the cheapest option. If you’re travelling with a partner or a group, sometimes a budget hotel can be just as affordable as a private room in a hostel.

Social Experience: Community vs. Privacy

The biggest difference between hostels and hotels is the social aspect.

Hostels are designed for interaction, while hotels prioritise privacy.

In a hostel, you’ll likely be sharing a dorm room, common lounge, or even a kitchen with other guests. Many hostels organise group activities, such as city tours, cooking nights, or bar crawls, which makes them perfect for solo travellers who want to meet people. (It does come with some downsides, too.) While hostels are great for meeting people, it’s also worth considering safety tips when staying in one.

Or just sitting at the kitchen table having lunch without headphones on can be seen as an invitation to start a conversation, much different to hotel lobby bars.

Hotels, on the other hand, are more private and independent. You’ll have your own room and bathroom, and while you might meet other guests in the lobby or hotel restaurant, it’s unlikely you’ll socialise the same way you would in a hostel.

This means hostels are great for travellers who want to meet new people, while hotels suit those who prefer a more relaxed and private experience.

If you enjoy the social atmosphere of a hostel but still want privacy, a private room in a hostel is the best of both worlds. You’ll still have access to common spaces, shared kitchens, and social events, but you can retreat to your own room when you need downtime.

Amenities: What Do You Get in a Hostel vs. a Hotel?

This is my biggest pet peeve when it comes to guests booking a hostel private room and expecting hotel-level service.

Hostels and hotels offer very different experiences, and yet I’ve seen countless guests complain that their private hostel room didn’t come with shampoo, a minibar, or daily fresh towels. If you’re booking a hostel, you need to adjust your expectations—it’s about budget-friendly, communal living, not full-service luxury.

Sleeping Arrangements

• Hostels: Dorm beds in shared rooms, sometimes with curtains for privacy. Some hostels also offer private rooms, but these are basic—think a bed, a lamp, and maybe a small table, not a fully furnished hotel room. Trust me, you can still sleep well!
• Hotels: Private rooms with en-suite bathrooms, usually with a TV, desk, wardrobe, and sometimes a minibar.

Bathrooms & Toiletries

• Hostels: Shared bathrooms in dorms, though private rooms often have an en-suite. Towels are not always included, although some hostels provide them in private rooms but charge extra for dorm guests. Shampoo and soap? Don’t count on it. Most hostels expect you to bring your own toiletries.
• Hotels: Private en-suite bathroom in every room, complete with daily refreshed towels, toiletries, and sometimes even robes and slippers.

Speaking of towels, don’t expect daily fresh towels in a hostel—even if towels are provided. Most hostels won’t replace them daily like in a hotel (which, to be fair, is better for the environment anyway!).

Make sure you pack the right toiletries and essentials for hostel stays.

Tea, Coffee & Room Service

• Hostels: Some hostels offer free tea and coffee, but it’s usually available in the common kitchen, not in your room.
• Hotels: Most hotels will have tea and coffee-making facilities (I stay in lower-end hotels so this usually means a kettle and powder coffee though) in your room or even room service for drinks.

Laundry Facilities

One area where I think hostels actually have an advantage is laundry. Many hostels have self-service washing machines, where you pay for a full load, rather than per item like many hotels charge.

However, keep in mind that you usually do your laundry yourself—there’s no hotel laundry service where your clothes come back neatly folded the next day.

WiFi: How Reliable Is It in Hostels vs. Hotels?

These days, free WiFi is the norm in both hostels and hotels, but the quality and accessibility can vary.

• Hostels: WiFi is almost always included for free, but in some hostels, the connection is strongest in common areas like lounges and reception, while dorm rooms may have a weaker signal or none at all. If you’re working remotely, this is something to check in the reviews before booking.
• Hotels: Free WiFi is standard in most hotels, but some business hotels or large chains still charge extra for high-speed access. While WiFi is usually available in all rooms, budget hotels sometimes have slower speeds than hostels, especially in older buildings.

If WiFi is essential for you, whether for work, video calls, or streaming, it’s always a good idea to read recent guest reviews to make sure the connection is strong and reliable.

Cleaning Service

• Hostels: Basic! Rooms cleaned after check-out, not daily. Or if you stay longer, they might clean your room once a week, or as requested.
• Hotels: Daily housekeeping, turn-down service.

Extra Amenities: Hostels Are Evolving

I used to think that gyms were only found in hotels, assuming that if you wanted access to a fitness centre or a pool, you had to book a mid-range or luxury hotel.

Then I heard about Steel House Copenhagen, a mega-hostel with a gym, pool, cinema, and even a yoga studio—and realised that some modern hostels offer way more than just a bed in a dorm.

While most hostels still focus on budget-friendly essentials, some boutique and large-scale hostels are adding features that blur the line between hostels and hotels. From rooftop bars and coworking spaces to wellness programs, hostels are evolving far beyond the traditional backpacker experience.

Why Hostels Are a Great Alternative to Budget Hotels

For some travellers, a private room in a hostel can be a better option than staying in a cheap hotel. The decision isn’t always just about price—it’s also about what kind of experience you’re looking for.

If you’re new to staying in hostels, this guide covers everything you need to know.

How I Decide Between a Hostel and a Budget Hotel

Personally, I make my choice based on how I feel at that moment in my trip:

• If I want to be helped, with more comfort, privacy, and minimal effort on my part, I’ll book a budget hotel. There’s something nice about coming back to a space that’s entirely mine, knowing I don’t have to interact with anyone unless I want to.
• If I’m in money-saving mode and don’t mind socialising, cooking for myself, and sharing spaces, then a hostel makes more sense. I know I’ll get more value for my money, and I might even meet nice people along the way.

Why Some Private Hostel Rooms Can Be Better Than Budget Hotels

Budget hotels can sometimes be cheaper than private hostel rooms, but they often come with trade-offs:

• Location matters – Many budget hotels are far from city centres or in less convenient areas, while hostels are often in prime locations at a lower price. If I want to be close to attractions and public transport, a hostel private room might actually be the better deal overall.
• Shared facilities = More flexibility – A hostel private room still gives me access to a kitchen, common areas, and social events, whereas a hotel room is just a place to sleep.
• The social aspect – Even if I’m not in the mood to socialise all the time, it’s nice to know I can chat with other travellers when I want to, instead of sitting alone in a sterile hotel room.

Saving Money on Food: Cooking vs. Eating Local

One of the biggest perks of staying in a hostel is the ability to cook your own meals and save money on food. However, this comes with a small downside—you might miss out on some local delicacies if you’re always eating in.

For me, the best compromise is buying groceries at local markets, so I’m still getting a taste of the culture while cooking for myself. If you’re in Riga, for example, you should definitely check out the Central Market—it’s one of the best places to find fresh local produce, cheese, and meats at great prices.

At the end of the day, the choice between a hostel and a budget hotel isn’t just about price—it’s about how you want to experience your trip.

Should You Stay in a Hostel or a Hotel?

Ultimately, the best choice depends on your travel style:

• Hostels are best for budget-conscious travellers, solo travellers, and people who enjoy social experiences.
• Hotels are ideal for those who want comfort, privacy, and full-service facilities.
• If you want a mix of both, private hostel rooms give you privacy with a social vibe.

Before booking, consider your budget, need for privacy, and preferred level of social interaction.