4 Budget-Friendly Lodging Ideas for Travelers

Save money without sacrificing comfort with micro hotels, home swaps and more

a gif of the exterior of a hotel, a woman reading a book, and a woman petting a dog

Budget-conscious travelers can save money on lodging with options such as pet sitting, micro hotels and home swaps.

Courtesy Marriott International; Getty Images, 2

Berit Thorkelson,

AARP

Published January 22, 2026

When you’re looking for ways to cut travel costs, lodging is a solid target. It ranks right up there with transportation as one of the most expensive parts of an average trip. That makes the prospect of lowering accommodation costs tantalizing to anyone feeling the squeeze of a tight budget. This includes those 50 and older, more than half of whom prefer to direct their discretionary income toward travel, according to the Senior List, a resource hub for older adults and caregivers.

Colleen Sims and her husband, both in their 60s, have traveled nearly nonstop since retiring in 2022 and have had great luck taking the budget-lodging route. “We actively choose accommodations that keep costs down, partly to ensure we can continue traveling but also because we prioritize experiences over where we sleep,” says Sims, who writes about their travels at her blog Then We Walked. For the Simses and others like them — myself included — clarifying what’s important about a trip allows them to explore affordable accommodations, quirks and all. They don’t sacrifice comfort or cleanliness, and they reap unique benefits, such as connecting with fellow travelers and tapping into local communities. Homestays are rooted in neighborhoods, and small rooms often come with big shared spaces to encourage mingling. Read on to find out which types may be a fit for you.

a woman talking with her teacher over plates of food at a table during a cooking class

Hostels, with common spaces, have evolved over the decades and can be a great option for travelers, both young and old.

Getty Images

Hostels

Does the image of a bare-bones European bunkhouse filled with partying 20-somethings spring to mind? Then you’re not yet familiar with poshtels, upscale hostels that represent the more recent evolution of the budget backpacker classic. They’re still relatively inexpensive — some private rooms go for under $100 in America and abroad. And they still typically offer vibrant spaces to connect with other travelers, like shared kitchens and community rooms.

“They’re building really beautiful hostels that are great for people who are working remotely or retired and living out their fantasy of traveling,” says Thea Delamater, a former hostel manager and cofounder of a booking platform for hostels, Hosteling.US. She traveled with her then-57-year-old mother through Europe a couple of years ago. “We stayed in hostels, and she was blown away,” Delamater says, recounting one in Prague that was reminiscent of a boutique hotel.

Inclusivity, she says, is part of the draw. “There’s a lot of really beautiful things that happen when you gather different generations around a firepit.”

Walter G. Meyer, a writer and traveler in his 60s, agrees. He stayed at a hostel in suburban Barcelona that catered to cyclists tackling the nearby trail and another in Cologne, Germany, with a travelers’ happy hour. In both, he had a “very affordable” private room, with a shared hall bath, and met travelers from around the world.

Meyer notes that some hostels have age caps, such as 35 and under, which helps avoid the party-bunkhouse-type hostels that still exist. Delamater suggests you read reviews carefully or call hostels directly to ensure the fit is right.

Travelers enjoy trading homes for free lodging, which often comes with a car for use and a built-in community.

Getty Images

Home exchanges

The Simses began house-swapping more than 20 years ago. Back then, their kids were still at home, so they traded with other families for logistical reasons. Now, they often swap with other retirees and older couples across America, Canada and Europe. “You’re swapping houses and swapping cars, but you’re also swapping this insider knowledge … [like] the best place to shop, the best market, the best restaurants, how to avoid the traffic,” she says.

The cost is free, though a fee paid to join an online house-swap community is worth the connection and peace of mind that comes from vetted opportunities and reviews, Sims says. A few to choose from include HomeLink ($118 per year), HomeExchange ($235 per year) and Intervac ($130 per year). For those uneasy about strangers in their home, Sims recommends dedicated linens and locking away personal belongings, including toiletries. She also advises exchanging emails with prospective swaps before you commit. Some communities allow members to offer their homes in exchange for points, which can be used to stay at another member’s home. Sims, however, prefers reciprocal swaps, which make you part of a relationship and often a community that includes you in local activities and celebrations.

“You’re kind of swapping lives as well as the house,” she says.

The range of options within the micro hotel category includes pods not much larger than a bed as well as compact, smartly designed rooms, some with private bathrooms. Motto by Hilton is one option.

Courtesy Hilton

Micro hotels

The idea: Strip down rooms to just the essentials, in a small footprint, offered at a low price. Defining features include wall-mounted flat-screen TVs, stowaway furniture and shower-only bathrooms — if they’re en suite at all. Often, shared spaces like kitchens and lounges are designed to be more inviting, encouraging social interaction and mingling.

They were born of the Japanese capsule hotels that caught attention in the 1980s. Those initial stacked bed-compartments were designed to let the country’s salarymen, or white-collar workers, catch a few winks between one day’s post-work revelry and the next day’s work. They’ve grown over the years, in popularity and, in some cases, size.

On the one hand, there are places like the Zedwell, in London’s Piccadilly Circus, with its windowless “cocoons” for around $40 a night. The Zedwell has larger “cocoon rooms” for those with mobility — or, presumably, claustrophobia — issues.

On the other hand, I stayed in a Pod Hotel in midtown Manhattan that was a modern and well-appointed 80 square feet, large enough for a bed and desk. (A one-person shared bath was in the hall.) It currently rents for around $100 a night. The queen rooms with private baths run about $35 more, which is far lower than the average of around $300.

In fact, big-name chains are invested in this model, including Hilton’s Motto, Marriott’s Moxy and Wyndham’s Microtel. While many of the rooms are too roomy to be considered true micro hotels, they do offer smaller-than-average rooms for a smaller-than-average price.

a woman petting a dog and laughing while sitting in a chair on a porch

When you care for someone’s home in exchange for watching their pet, free lodging comes with the added perk of animal companionship.

Getty Images

Pet or house sitting

This option has similar benefits to house-swapping, including the potential for netting insider knowledge and a built-in community. But instead of trading use of your home, you watch a pet or a house in exchange for lodging.

Travel coach and writer Heather Markel, 56, has been pet sitting since 2020. “You have the companionship of the animals, and you have use of someone’s home, [including] a kitchen where you can cook your meals, so you’re saving even more money,” Markel says.

“You probably are getting introduced to a neighborhood you might not have otherwise experienced,” she continues. “So it feels more like you’re living in a place than [being] a tourist.” It’s also made travel to expensive cities affordable.

As with house swaps, there are a variety of fee-based communities to tap into, including TrustedHousesitters (starts at $129 per year, plus $12 per sit), MindMyHouse ($29 per year) and HouseSit Match (starts at $120 per year). Markel recommends looking into country-specific sites as well.

If you’re considering this route, it’s important to know that some countries consider pet and house sitting work and therefore do not allow it on a tourist visa. If you stick to opportunities in your home country, you should be fine. If you decide to branch out, check visa and immigration policies for your destination.

%{postComment}%

Berit Thorkelson is a travel writer and editor for aarp.org. She has also written for publications such as National Geographic Traveler, Better Homes & Gardens and The Minnesota Star Tribune’s travel section.