Hostels are popular overseas, but many Americans do not really know how to use them to save money when travelling.  You can save a bunch on travelling if you learn how to use hostels.

Hostels provide short-term accommodation to travellers or backpackers, particularly encouraging outdoor activities and cultural exchange for the young. Hostels are also often called Backpackers’, particularly in Australia and New Zealand, where hostels started to operate under this name as an alternative to Youth Hostels.
In a hostel guests rent a bed (sometimes a bunk bed) in a dormitory and share common bathroom, kitchen, and lounge rooms. Private rooms are often available. The main benefit of a hostel is that one gets to meet other travellers from all over the world. Hostels are usually less formal and less expensive than hotels. They are most frequently used by young travellers. In the past many hostels had imposed age limits, but today it’s more common for hostels to accept guests of all ages. Despite the openness of modern hostels, the majority of guests are traditionally and overwhelmingly between the ages of 18 and 26.
So if you are up for travelling this way, hostels will save you a bunch on your next vacation.
Here is a list of some of the top hostel cities.