Top 10 Budget Hostels in Europe for Backpackers

Travelling across Europe doesn’t have to drain your bank account. In fact, with the right planning and a bit of insider knowledge, you can explore iconic cities, meet fellow travellers, and experience the continent’s rich culture—without spending a fortune. For backpackers, finding the right place to stay is crucial. Enter the world of budget hostels in Europe: sociable, cost-effective, and often located in the heart of the action.

This guide rounds up 10 standout hostels offering not just affordable stays, but also comfort, community, and a little charm. Whether you’re hopping between capitals or soaking in seaside sunsets, these backpacker accommodation picks combine price and personality in equal measure.

Why Hostels Are the Best Choice for Backpackers

Cost-Effective Accommodation

Hostels are among the cheapest ways to sleep while travelling Europe. With dorm beds starting from as little as £10 a night in some cities, you can stretch your travel budget without compromising your experience.

Community and Social Vibes

Unlike hotels, hostels often come with communal kitchens, lounges, and daily events—making them perfect for solo travellers looking to meet people.

Central Locations and Unique Experiences

Many hostels are based in prime city spots or even in quirky buildings like castles, boats, and converted schools. It’s a far cry from soulless accommodation.

Top 10 Budget Hostels in Europe for Backpackers

1. The Circus Hostel – Berlin, Germany

Why we love it: A Berlin institution, The Circus combines affordable prices with slick design and a buzzing social calendar. Expect pub quizzes, brewery tours, and even yoga classes.

• Cost: From €25/night
• Perks: On-site café and microbrewery, great Wi-Fi, walking tours
• Location: Mitte, close to Museum Island and Alexanderplatz

2. Generator Hostel – Copenhagen, Denmark

Why we love it: Copenhagen isn’t known for being cheap, but Generator makes it possible to stay central without breaking the bank. Industrial-chic décor and a lively bar seal the deal.

• Cost: From €27/night
• Perks: Ping pong, events, bike hire
• Location: Near Kongens Nytorv and Nyhavn

3. The Independente – Lisbon, Portugal

Why we love it: Housed in a former palace, The Independente is a luxurious take on affordable stays. Private balconies, rooftop drinks, and communal dinners make this one unforgettable.

• Cost: From €20/night
• Perks: Rooftop bar, live music, breakfast included
• Location: Overlooking the Tagus River in Bairro Alto

4. KEX Hostel – Reykjavik, Iceland

Why we love it: In pricey Iceland, KEX stands out as one of the best budget hostels in Europe. A former biscuit factory, it’s now a cool space with a bar, gym, and event space.

• Cost: From €30/night
• Perks: Live music, sea views, local art
• Location: Central Reykjavik, near the waterfront

5. ClinkNOORD – Amsterdam, Netherlands

Why we love it: Just a quick ferry ride from Amsterdam Central, ClinkNOORD is modern, artsy, and full of energy. Great for digital nomads and creatives alike.

• Cost: From €22/night
• Perks: Library, music venue, free walking tours
• Location: Amsterdam-Noord, with great access to museums and nightlife

6. St. Christopher’s Inn – Barcelona, Spain

Why we love it: Right off Plaça de Catalunya, this hostel is a dream for sunseekers and partygoers. Dorms are spacious, and there’s an on-site bar for mingling.

• Cost: From €19/night
• Perks: Bar crawl access, discounts at Belushi’s Bar, daily events
• Location: Gothic Quarter, near Las Ramblas and the beach

7. Wombat’s City Hostel – Vienna, Austria

Why we love it: Clean, well-run, and perfectly located, Wombat’s Vienna branch hits all the right notes for backpackers. Plus, their in-house café makes a mean cappuccino.

• Cost: From €24/night
• Perks: Free welcome drink, laundry facilities, lockers
• Location: Near Naschmarkt and the MuseumsQuartier

8. Oasis Backpackers Hostel – Granada, Spain

Why we love it: Set in the shadow of the Alhambra, this hostel is known for its rooftop terrace, flamenco nights, and welcoming atmosphere.

• Cost: From €15/night
• Perks: Tapas tours, rooftop BBQs, free Wi-Fi
• Location: Albaicín district, a short walk to the Alhambra

9. City Backpacker – Stockholm, Sweden

Why we love it: A sleek, Scandinavian-style hostel that offers sauna sessions, bike rentals, and budget-friendly beds in a usually expensive city.

• Cost: From €28/night
• Perks: Free pasta, guest kitchen, common room
• Location: Norrmalm, close to the train station and Old Town

10. Greg & Tom Party Hostel – Kraków, Poland

Why we love it: Legendary among backpackers, this Kraków hostel offers free breakfast, dinner, and nightly parties—perfect for sociable travellers.

• Cost: From €18/night
• Perks: Free meals, themed parties, city tours
• Location: Kraków Old Town, walking distance to all major sights

Backpacking Tips to Stretch Your Budget Further

Book Direct or Early

Avoid third-party mark-ups by booking directly on the hostel’s website. Early birds often score lower rates.

Cook Your Own Meals

Choose hostels with kitchens and nearby markets to save money on food. Even just breakfast and dinner at home can add up to big savings.

Use Discount Cards

Many hostels offer discounts with ISIC (International Student Identity Card), Hostelling International, or Eurail passes.

Choose Shoulder Season

April–June and September–October offer the best balance of weather, crowds, and affordable stays across Europe.

Case Study: From Berlin to Barcelona on £30 a Day

Jake, a 22-year-old backpacker from Bristol, spent 3 weeks travelling through Germany, the Netherlands, France, and Spain, staying only in budget hostels in Europe. He averaged just £30 per day by:

• Staying in shared dorms with kitchens
• Taking free walking tours
• Travelling by overnight buses
• Eating at markets and cooking in hostels

“I met so many people who were travelling for months at a time,” he says. “These hostels weren’t just places to crash—they were the reason the trip was so memorable.”

Key Takeaway

Backpacking through Europe doesn’t require a bottomless bank account—just smart choices and a little flexibility. With this curated list of budget hostels in Europe, you can explore vibrant cities, meet incredible people, and rest your head in comfort, all without blowing your budget. Each hostel brings something special to the table, whether it’s an unbeatable location, quirky character, or just excellent value.

Plan Smart, Travel Far

From the cobbled streets of Lisbon to the canals of Amsterdam, backpacker accommodation across Europe offers a rich tapestry of options that cater to both budget and experience. These hostels prove that “budget” doesn’t mean boring. With community vibes, central locations, and thoughtful amenities, they serve as launchpads for unforgettable adventures.

Ready to start your European backpacking? Book your bed, pack your rucksack, and hit the road. The continent awaits—and so does your next story.