Choosing where to stay: hotel, Airbnb, hostel or caravan park?
Choosing where to stay is one of the decisions that has the biggest impact on both your budget and your trip experience. In Australia, the options are very varied — and no single type is best all the time. This article helps you frame the choice around your specific trip.
Common accommodation types for travel in Australia
Hotels and motels
Hotels and motels are the familiar full-service option: a private room, housekeeping, a reception desk.
When they suit:
- A work trip, or when you want to step out of “holiday mode”
- Travelling with older people or small children who need stable comfort
- A first visit to a city where you want a central location that is easy to get around from
Motels are usually cheaper than hotels and common along highways — practical for a road trip when you just need somewhere to stop overnight.
Things to watch:
- Prices swing sharply with the season and events — booking early saves a lot
- The price on a booking site may not include resort fees or parking (check carefully)
- Central areas may not have free parking
Airbnb and short-term rentals
Renting a whole house or a room through platforms like Airbnb or Stayz.
When they suit:
- A family or larger group of friends — splitting the cost of a house is often much cheaper than several hotel rooms
- A trip longer than 3–4 days — a kitchen for cooking saves on food costs
- Wanting to experience living like a local in a residential area rather than a tourist zone
- A smaller destination without many hotels
Things to watch:
- There is a separate cleaning fee — work out the total for the whole stay before comparing with a hotel
- Cancellation policies vary a lot — read them carefully before booking
- The location may be further from the centre than a hotel at the same price
- No reception desk — if something goes wrong, you contact the host through the app and wait for a reply
Hostels (backpacker accommodation)
Shared accommodation — usually a multi-bed dorm room with shared common areas.
When they suit:
- Travelling solo or in a small group who want to meet other people
- A low budget — a dorm room is the cheapest option in the major cities
- Major cities with a good hostel network (Sydney, Melbourne, Brisbane)
- A short trip when you do not need private space
Things to watch:
- Quality varies a lot — read recent reviews before booking
- YHA (Youth Hostels Association) has more consistent standards than many private hostels
- A dorm room is not ideal if you snore or come back late often
- Many hostels also have private twin/single rooms — a middle option between a dorm and a hotel
Caravan parks and holiday parks
Serviced campgrounds — usually with space for a caravan, cabins, and sometimes bungalows.
When they suit:
- A road trip with your own vehicle and a tent or caravan
- A family with children — many holiday parks have a pool and a playground
- Outer-suburban or coastal destinations where hotels are scarce and more expensive
- Wanting to be close to nature with basic facilities
Things to watch:
- A cabin (powered site) is usually better than an unpowered site for facilities but costs more
- Book early for holidays and summer at coastal tourist spots
- Quality varies enormously — from a simple caravan park to a fully equipped holiday resort
Camping in national parks
The simplest accommodation — just a tent space and minimal facilities.
When it suits:
- Especially good for trips to national parks and nature
- The lowest budget, the highest nature experience
- People who already have camping experience and gear
See more: the related guide on camping in Australia and where to start if you have no experience.
Choosing by trip type
A short weekend, solo or as a pair: A central hotel or a small Airbnb — convenient, with no need to cook.
A long trip, family or group of friends: A whole-house Airbnb — the kitchen helps save on food, and the shared space is comfortable.
A cross-region road trip: Motels along the way for overnight stops — convenient, easy to book, no need for much preparation.
A major city on a low budget: A hostel dorm — especially good if you are out all day and only come back to sleep.
Nature and rural areas: A caravan park cabin (for families) or camping (for the experienced).
Quick questions to help you decide
Do you need a kitchen? If you have small children or are away for many days, a kitchen saves a lot. Airbnb or a caravan park has a kitchen.
How many people are travelling? 4+ people: an Airbnb house is usually cheaper than four hotel rooms combined. 1–2 people: a hotel or hostel is usually more flexible.
What do you need most: facilities, location, or price? You cannot optimise all three — set your order of priority before you start searching.
How far ahead to book? For holidays and summer at popular spots, book 4–8 weeks ahead. Major cities are usually more flexible.
Summary comparison
| Type | Price | Facilities | Best for |
|---|---|---|---|
| Hotel/Motel | Mid to high | Stable | Couples, work, older people |
| Airbnb | Mid (cheaper for groups) | Flexible | Groups, long trips, with a kitchen |
| Hostel | Lowest | Shared | Solo, low budget, meeting people |
| Caravan park | Low to mid | Outdoor | Families, road trips, nature |
| Camping | Lowest | Minimal | The experienced, nature |
For more, see the related guides on travelling Australia on a budget and how to plan a weekend away in Australia.