Hostels are a good deal to start with, and get even better when you add sale prices into the mix. Which is exactly why HostelBookers' Europe summer sale, with rates up to 70 percent off the usual prices, caught my eye. The sale covers Cyprus, Greece, Malta, Italy, Portugal, and Spain.
The catch is that the sale is good in August only. But if you're traveling this month and looking for a budget-lovin' way to stay, it's definitely worth checking out. Especially since so many hostels are taking cues from boutique hotels these days, with mod furnishings and an elevated hip factor. Plus, many hostels offer private rooms alongside the usual dorm accommodations.
In addition to many hostels, HostelBookers also lists other cheap accommodations options, including budget hotels, apartments, guesthouses, and campsites.