Melbourne, Australia’s cultural capital, is a magnet for backpackers chasing art, coffee, and adventure. Whether you’re a solo traveller or part of a crew, this guide to the top-rated hostels in Melbourne for backpackers will help you stretch your budget without missing a beat.
Why Backpackers Love Melbourne
Ranked among the world’s most liveable cities, Melbourne offers:
- 🎭 A thriving arts and music scene
- ☕ Iconic laneway cafés and coffee culture
- 🚋 Efficient public transport with Myki access
- 🏨 A wide range of budget-friendly hostels in Melbourne CBD and inner suburbs
Whether you’re after a social vibe or a quiet night’s sleep, the best hostels in Melbourne cater to every travel style.
Getting to Melbourne
✈️ By Air
Fly into Melbourne Tullamarine Airport (MEL). From there, hop on the SkyBus or take a train into the city.
🚍 By Bus or Train
Greyhound Australia and V/Line offer affordable routes to Southern Cross Station—Melbourne’s central hub.
Where to Stay
🏘️ Budget Hotels and Airbnb Alternatives
If hostels aren’t your style, Melbourne also offers:
- Budget best hotels in Melbourne and Docklands with private rooms under AUD $100/night
- Airbnb stays in artsy suburbs like Fitzroy, Carlton, and Collingwood, where you’ll find vintage shops, indie cafés, and a strong local vibe
- Shared apartments or private rooms are ideal for longer stays or couples seeking a quieter base
💡 Tip: Look for Airbnbs near tram stops or within the Free Tram Zone to save on transport costs.
Affordable Backpacker Hostel and Airbnb
These Melbourne backpacker hostels offer a mix of dorms and private rooms, with amenities like communal kitchens, rooftop terraces, and organized events to help you meet fellow travellers.
Getting Around Melbourne
🚋 Public Transport
Grab a Myki card to access Melbourne’s trams, trains, and buses. You can top it up at stations or convenience stores. Bonus: the Free Tram Zone in the CBD lets you explore the city center without paying a cent.
🚲 Cycling
Melbourne’s bike lanes and scenic river trails make cycling a great option. Rent from local shops or use e-bike apps like Lime and Neuron—helmets are included and required.
🚶♀️ Walking
With its flat layout and famous laneways, the CBD is best enjoyed on foot. You’ll find quirky cafés, murals, and street performers at nearly every turn.
Must-See Attractions in Melbourne (with Local Context)
| Attraction | Description | Distance from CBD |
|---|---|---|
| Federation Square | Cultural hub with ACMI and NGV Australia | 900m / 10-min walk |
| Queen Victoria Market | Historic market with food, crafts, and souvenirs | 1.2km / 15-min walk |
| Hosier Lane | Iconic laneway filled with ever-changing street art | 600m / 7-min walk |
| Royal Botanic Gardens | 38 hectares of lush gardens and lakes | 2.5km / 30-min walk or 10-min tram |
| St Kilda Beach | Beachside suburb with Luna Park and penguins | 6km / 25-min tram ride |
🗺️ Want to see them all on one map? Explore this custom Google Map of Melbourne attractions
Budget-Friendly Things to Do in Melbourne
🥾 Free Walking Tours
Join local guides from groups like I’m Free Tours or GuruWalk for 2–2.5 hour strolls through Melbourne’s laneways, street art, and historic sites. These tours operate on a tips-only basis and are a great way to get your bearings in the city.
🖼️ Museums & Galleries
Explore the National Gallery of Victoria (NGV) and ACMI at Federation Square — both offer free general admission. NGV showcases international and Australian art, while ACMI dives into film, TV, and video game culture with interactive exhibits.
🎉 Festivals
Melbourne’s calendar is packed with free events. White Night transforms the city with light installations and performances, while Moomba Festival (March 6–10, 2025) brings fireworks, parades, and carnival rides to the Yarra River.
Food and Drink
🍜 Cheap Eats
Head to Chinatown for legendary dumplings at spots like HuTong or Shanghai Street. Or hit Welcome to Thornbury, Melbourne’s permanent food truck park, for rotating global street food in a lively beer garden setting.
☕ Coffee Culture
Melbourne takes its brews seriously. Sip a flat white at Seven Seeds in Carlton or Market Lane Coffee at Queen Vic Market or Mitchell House — both are pioneers in the city’s specialty coffee scene.
🍻 Happy Hours
Melbourne’s happy hour scene is as diverse as its laneways. From rooftop bars to cozy pubs, you’ll find early evening drink specials that let you enjoy the city’s nightlife on a backpacker’s budget.
Safety Tips
📱 Stay Connected
A local SIM or eSIM from Telstra, Optus, or Vodafone helps with maps, bookings, and staying in touch. Many plans offer flexible, affordable data—ideal for travel apps and messaging.
🔐 Use Hostel Lockers
Most hostels offer secure lockers—just bring your own padlock. It’s the safest way to store passports, electronics, and extra cash.
🚫 Avoid Jaywalking
Melbourne enforces jaywalking laws, especially in the CBD. Crossing against signals can earn you a fine of over AUD $380—so stick to crosswalks and signals to stay safe and avoid surprises.
FAQs: Backpacker Travel in Melbourne
❓ What’s the best area to stay in Melbourne for backpackers?
CBD, Fitzroy, and St Kilda are top picks. CBD is central, Fitzroy is artsy, and St Kilda offers beach vibes.
❓ Are hostels in Melbourne safe?
Yes! Most Melbourne backpacker hostels offer secure lockers, 24/7 reception, and female-only dorms.
❓ How much does a hostel cost in Melbourne?
Expect to pay AUD $30–$50 per night for a dorm bed. Private rooms start around AUD $80.
❓ Can I work while backpacking in Melbourne?
Absolutely. With a Working Holiday Visa, you can find jobs in hospitality, retail, or farm work.
Ready to Book Your Stay?
Melbourne offers an incredible blend of culture, cuisine, and community, making it a must-visit destination for backpackers. By following these tips, you’ll be well-equipped to explore the city on a budget while creating unforgettable memories.
Ready to start your Melbourne adventure? Pack your bags, grab your Myki card, and head to Tram Stop 14—one of the best hostels in Melbourne. Discover why so many travellers fall in love with this vibrant city. Happy backpacking!