The reflexive answer to "how do I save money on lodging" is "stay in hostels," and for a solo traveler that's usually right. But the math shifts more than people expect once a second traveler enters the picture.
Solo travelers: hostels usually win
A dorm bed at $12–22 a night is hard to beat for a single traveler, and the social aspect is a genuine value-add for people traveling alone, not just a cost-saving consolation prize.
Two travelers: the math changes
Two hostel dorm beds often cost close to, or more than, one private room in a budget hotel or a private room within a hostel — and a private room includes a bathroom you're not sharing with eight strangers, a real consideration for sleep quality on a long trip.
What each option actually costs beyond the nightly rate
Hostels often include free breakfast, a communal kitchen (real savings if you cook even a few meals), and free walking tours or events. Budget hotels rarely include any of this, so their advertised rate is closer to the full cost, while a hostel's advertised rate understates the value.
Takeaway: Compare total value, not just nightly rate — a hostel's kitchen and free breakfast can be worth $8–12 a day on their own, which changes the real comparison against a budget hotel.