Past few years ago middle class in India used to stay in Dharamshalas and Sarai ( Inn) during their travel. They are still popular among low budget travelers looking for stay in 200 rupees to 400 rupees. Many of these accommodations are in religious locations. They are managed in rustic ways and cleanliness and hygiene is very poor. Hostels in contrast are Hygienic, Cheap and Affordable. These Factors are common in budget hotels or hostels so are left out of comparison A. Daily Housekeeping, B. Clean and Fresh Washrooms C. Laundered Linen provided at check in and on request

Hostels for Socializing

Hostel or Dorm is the easiest place to meet and socialize with new people. You will be forced to have to strike a conversation or at-least a Hi out of politeness. When you've been travelling for a long time you get into the habit of just striking up a conversation. If you are in a hostel which does not have good common areas, it becomes a lot harder to meet new people. The fact that you know you will be sharing with other people means you know even as a solo traveller you will meet other people. For that reason dormitory rooms win on this one.

Privacy Factor in hostel

You save a lot of money in a hostel bed in a room.The fact is that you get more privacy in a private room in a hotel. For the cheaper price of the hostel you do need to give up some privacy. The hotel rooms are expensive because one or two people occupy the same space that can easily accommodate up to 6 people. Hostels are only able to offer that cheap price because you'll be sharing the room with other backpackers who book a bed. You need to choose your pick from privacy or the extra bucks saved in the hostel.

Cost wise Comparison

Hostel beds are cheaper than private rooms in Hotel. Take this example, dorm prices in Goa are around INR 300($4.5)- 400 ($ 6) a night. A room in a Goa budget hotel will cost you INR 1500 - 2100 per night for a room on double occupancy. Considering facilities of a nice hotel you may definitely think the latter price offers a lot of value. As a solo traveller you could be saving as much as 1100 INR a night! For a couple travelling together you would still save around INR 700 ($10) per night in total. So dorm rooms win on price!