After transport, accommodation is likely to burn the biggest hole in budget travellers' pockets. Luckily this is one area where economies can still be made. The cheapest accommodation is of course completely free. Sadly, there's not much of it. In a few parts of the world it is fine to sleep on beaches. However, not only are the rules subject to unexpected change and the whim of the local police, but beach bums are deprived of necessities such as washrooms, making this an unsatisfactory way to pass more than the odd emergency night. Those with a tent may find local farmers prepared to let them use their fields and facilities, but such ad hoc arrangements tend to depend on negotiating skills.

Some Indian and African Sikh temples also offer free accommodation. Don't expect luxury - one large bed may serve for any number of visitors. Nevertheless staying in a temple can be a magical experience, offering the chance to find out about the religion at the same time. Visitors must abide by prohibitions on smoking or drinking on the premises, but will often be included when the post-service sweetmeats are being handed out. The communal meal or langar at Sikh temples is open to all. While there is rarely an official fee, most temples appreciate a donation and may keep a visitors' book indicating what is expected.

Networking can also produce free accommodation. Members of the Globetrotters Club (The Friends Meeting House, 52 St Martins Lane, London WC2; www.globetrotters.co.uk; no telephone number) can sometimes stay with fellow members in other countries. Home-owners can also swap their homes with others (see Home exchanges article).

Travellers who hitch or use public transport may find themselves invited to stay with people they meet on the way. This can be the perfect way to find out about a place, but in developing countries may mean staying in houses without running water or toilets, and where conventions, particularly concerning women, may be very different from those at home. The tradition of hospitality to strangers, especially in Muslim countries, is still strong and may mean someone going without to provide for the guest.

It pays to be aware of local customs: in some countries anything a guest admires must be given to them; in others refusing food can cause offence. Clearly women must be especially careful about accepting offers of hospitality, particularly in Islamic countries where such offers will often come from men. If you decide that you would like to take up offers of hospitality, you should squeeze suitable thank- you presents into your backpack - pictures of London, British coins, malaria pills and biros often do the trick.

Organised camping is the next best option, particularly in Europe and North America where there are lots of well-equipped sites. The main snag, unless you have a vehicle, is carrying the tent and cooking equipment. However, many companies now sell lightweight tents.

Campsites are frequently in the middle of nowhere: in developing countries you may find that by the time you have added the cost of getting to and from them to the site fee, it is cheaper to stay in a budget hotel or in a hostel. Staying in hostels can minimise accommodation costs while also ensuring you meet other travellers. There are more than 5,000 International Youth Hostel Federation hostels and most are open to members of all ages, with priority going to younger members at busy times. Although you can usually take out temporary membership on the spot, it is often cheaper to join before leaving home.

Although hostels vary in character, many have cut back on previously rigid regulations, staying open all day and removing the nightly curfew. The standard of accommodation has improved too, with central heating, cooking facilities and relative privacy. In developing countries, some serve as long-stay accommodation for the homeless. In Europe expect noisy school parties. Incidentally, despite their name, YMCA/YWCA hostels are not usually any more restrictive than other hostels.

If you want to stay in cheaper hotels you must normally rely on guidebooks and recommendations; travel agents and tourist offices rarely keep details of budget accommodation. If you haven't got a guidebook, the best hunting ground is likely to be near bus and railway stations (for a good night's sleep make sure you get a room at the back of the building).

In Europe the pension equivalents of British bed and breakfasts generally omit the breakfast. As with the more expensive hotels, some pensions are subject to tourist board inspection, ensuring reasonable standards. Travel agents usually charge for booking hotels, however cheap. Instead, get the address from a telephone book in the library reference section. If possible write in the relevant language, and enclose a Post Office international reply paid coupon. If you prefer to phone but would find this difficult, British Telecom's translation service can work out cheaper than paying an agent to make your booking - call the international operator on 155 for details. To cut down communication costs, use central reservation offices for cheaper hotel chains such as Travelodge.

Finding budget accommodation in the United States can be difficult, and package deals often offer excellent value. The US Tourism Administration has details of companies that can make bed and breakfast bookings. Groups of three or four people can reduce costs by sharing twin rooms, which often have two double beds. Avoid extra costs by carefully observing the latest check-out times, and never make phone calls from your room.

In developing countries, rooms costing a mere couple of pounds a night may be furnished with a bed and chair only. Where dormitories are more popular than individual rooms, some will not accept women travellers. Even when they do, the same rooms double as children's nurseries, guaranteeing sleepless nights. Before accepting a very cheap room, check that the fan works, that the door locks properly, that the window will close and is fitted with mosquito- protection where appropriate, that there are no peep-holes in partition walls, that the walls reach right to the ceiling and that there are no tell-tale signs of bed bugs, ants or other insects. Then check the state of the toilets and the water supply (in Islamic countries the hammams or public baths make private baths and showers less important).

Try and pair up with someone else before booking in, in order to avoid being charged a single supplement. Train travellers can evade accommodation costs if they are prepared to sleep sitting up in frequently crowded conditions. Within Europe you'll get a better night's sleep at a reasonable price by opting for a couchette, a sort of fold-down shelf- bed which comes much cheaper than a true sleeping berth. Bear in mind that not everyone can sleep through a train's stopping and starting and that ticket collectors often time their visits for the early hours. Outside Europe, some sleeping cars offer an experience not to be missed. Nairobi to Mombasa sleepers, for example, have fold-down sinks and dining cars of near-Orient Express splendour. Their route also ensures that you wake up with the Tsavo National Park drifting past your bedroom window.

Taking a camper van or caravan with you obviously eliminates accommodation costs. However, few budget travellers can afford the initial outlay, the extra ferry fares and the high cost of petrol. Nevertheless, package deals to the US including a camper van offer excellent value for money.

A cautionary note on false economy. In some parts of the world, hotel prices are ludicrously low in comparison with the UK. In Udaipur (India) it is possible to stay in the usual pound-a-night pit; however, you could also stay in the fairytale Lake Palace Hotel, once a maharajah's palace, for a fraction of what anything remotely similar would cost at home. Likewise in Yangon (Rangoon) you can find a cheap room or upgrade to the fading colonial Strand. Now that Raffles in Singapore has been resurrected in a new guise with London- style prices, it's worth snapping up the real bargains that still remain to be had.