Pensions and budget hotels offer you the same basic facilities as a regular hotel. You will have a room to yourself, but you will share the bathroom. You can save up to 50 percent the cost of a hotel -- you can also double what you'd pay for a hostel.

Staying in pensions is very expensive in Western Europe. However, you can stay in a pension in Eastern Europe for the price of a dorm bed in Western Europe.

Hostel websites usually list pension options as well.

You are less likely to find a community at a pension than at a hostel. There often are few communal areas such as the kitchen or lounge room some hostels offer. Keep that in mind if you are traveling solo and hoping to meet fellow travelers.

If you're traveling with a group, staying in pensions and budget hotels may be just as cheap as hostels -- and a whole lot more comfortable.