
Booking: I booked a hostel ahead of time. The advantage of this is that it guarantees you a place to stay and will take away the stress of finding a place right after you get off the plane. Also, if your in high season, it's cheaper to book a head of time. The cost may double if you plan on buying a room when you get there. The disadvantage is that there is a booking cost of $2, which is worth it to me.
Location: I chose a place in the heart of the city. This would normally be more expensive, but my hostel still seemed to give a good price, most other hostels near by were about $10 more per night. Pros: everything is nearby, so you don't have to pay for transportation. Budapest isn't particularly safe outside the city. Cons: it's noisier and generally more expensive.
Room Size: I saw rooms ranging form 1 bed to 20 bed per room. Obviously it's more expensive the more exclusive you get. I chose the 4 bed per room. Pros of more beds: You meet more people. Cons of more beds: more noisy, more of a security risk.
Cleanliness: This is the most important to me. Nothing worse than dirty sheets and bathrooms. Usually you can get a pretty good idea by reading reviews on the hostels (Also know that reviews are generally negative). My place is known to be clean but occasionally runs out of hot water.
Staff: How friendly are the staff and hostel environment? Again you can get a pretty good idea of this by reading the reviews. My hostel does have a friendly staff, planned events like wine tours, bar on the first floor, dance studio on the top floor and is a rather large hostel catered to students.
My place is called the Casa De La Musica. I haven't stayed there yet, but I'll write an thorough review once I get there.
p.s. I'm a little worried because I've recently seen the movie Hostel....
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