In Melbourne, you'll find most budget rooms in the CBD, especially along Elizabeth, Russell and King streets. Also try adjacent inner-city suburbs like St Kilda, Prahran and North Melbourne.
Demand for dorm rooms generally peaks in the city during major sporting events and over the summer months (December to March), so book early.
There's also budget regional accommodation, so you're guaranteed a clean, cheap and cheerful bed wherever you go.
Check out the hostels featured below or use the search box at the bottom of the page to find a bed to suit your budget.
Award Winners 2008
The results are in for Victoria's best backpacker places in 2008.
Victorian Tourism Award Winners
Best Backpacker Accommodation – Melbourne Metro YHA (second time winner)
Golden Backpack Award Winners
Best Hostel – Nomads Industry, Melbourne.
Other finalists included: Urban Central Hostel, Melbourne; Cooee on St Kilda; and Base Backpackers, St Kilda.
Melbourne Metro YHA, Melbourne
Clean, safe and comfortable rooms, and a fantastic atmosphere for young travellers. Theres a cafe, in-house tour desk, internet, movies, and a rooftop party area with awesome views.
78 Howard St, North Melbourne
Ph 03 9329 8599
Industry Flashpackers, Melbourne
One of Melbourne's newest backpackers, Industry Flashpackers features a large range of room styles including king ensuite doubles, twins, family and dorm rooms, plus a bar and café.
196-198 A'Beckett Street, Melbourne
Ph 1800 447 762
Cooee on St Kilda, Melbourne
Modern, friendly and secure accommodation in the heart of St Kilda. Close to the best nightlife and restuarants all within easy access of the city.
333 St Kilda Road, St Kilda
Ph 03 9537 3777