Clearly there are many ways of achieving a great dollar/experience ratio. To my mind the best value can be had from cheapening the least memorable aspect of your journey, the actual bed where you lay down your head. If you choose well, it will be un-memorable, and cheap.
Given that accommodation can be the most expensive aspect of our journey, I recommend looking for somewhere that has good quality rooms but at an price that makes sense for all the extra experiences you can get with the dollars you have saved.
Put it this way… if you can share a bunk room with 20 other like-minded folk, and spend the savings on authentic local experiences that you will remember for ever, is that a good deal?
So suck it up, party hard and sleep cheap, the best value propositions are backpacker dorms… and they are generally cheaper if you stay for a week. Prices start from just $18, but the lowest priced hostels tend to rate lower and attract mostly long-term residents, people on working holidays. Private rooms start at $60, or $75 with an ensuite.
Backpacker Hostels
These are per person prices unless otherwise indicated… consider the value of privacy…
Elizabeth Hostel – $27+
490-494 Elizabeth Street, Melbourne CBD
From $80 for a twin room
Barkly Backpackers – $24+
102 Barkly Street, St Kilda
St Kilda is one of the 4 main party zones in Melbourne… Free shuttle from the airport for those staying 4+ nights.
Melbourne Central YHA – $30+
562 Flinders St, Melbourne CBD
Free Wi-Fi, and bar with a TV showing sports.
United Backpackers – $28+
250 Flinders St, Melbourne CBD
Opposite Flinders St train station, brand new hostel with a bar in the basement.
The Nunnery – $28+
116 Nicholson St, Fitzroy
Close to the CBD, Fitzroy is a vibrant suburb with a lot of bars and restaurants. The building is 130 years old and yes, nuns used to live there.
Space Hotel – $29+
380 Russell St, Melbourne CBD
Impressive facilities – rooftop space with views and a spa, small cinema and a gym.
Habitat HQ – $23+
333 St Kilda Rd, St Kilda
Very cheap, but a bit of a walk from the action in St Kilda. Aldi is handy though… Free shuttle from the airport for those staying 3+ nights.
Home at the Mansion – $24+
66 Victoria Parade, Melbourne
Located halfway between the CBD and Fitzroy, and in the free tram zone. Every room has a large window, with beautiful stained glass and high ceilings. Every room has a TV and secure locker.
MORE: For a complete list of hostels, with prices and reviews, pop over to Hotelz.
Hotels
I have only listed hotels that have some form of self-catering (like a kitchenette with a stove top and microwave) – otherwise what you gain from cheap prices will be lost on meals. Prices can vary – rough guide only!
Knightsbridge Apartments $120 with free WiFi
East Melbourne
Arrow on Swanston $110 with free WiFi
CBD
Plum Carlton Serviced Apartments $135
Carlton & North Melbourne
City Edge $120 with free WiFi
North Melbourne
Redan Apartments $105 with free laundry
St Kilda
St Kilda Stays has a variety of furnished apartments from $110 – if you book 7 nights in advance
Camping
Not easy in Melbourne, as it is pretty much against the law to camp anywhere. Camping grounds outside of Melbourne are rarely cheaper than a hostel. The closest campground is Big 4 Melbourne which is 9km from the CBD, but to pitch your tent will cost $46. Some travellers who have campervans will sleep in them in car parks illegally, where they will be told off by council workers, or police, but rarely fined.