Regular hotels cost more than hostels. Hostels remind of dormitories – you stay in a room with a few other travellers. It is fine since in the daytime you will be somewhere else sightseeing and you will return back to your room at night. So you will hardly need to spend time with your roommates. In some instances, especially when you travel off-season, hostels can accommodate you in an empty room where there are no other tourists. Another plus is that hostels have all modern conveniences: kitchenettes, bathrooms, access to the Internet and cafeterias.