For European destinations, hostels trump hotels for deals and camaraderie

BRUSSELS, Belgium—The tumbling U.S. dollar is forcing a new experience on many Americans traveling through Europe: a stay in a youth hostel.

With prices as low as $31 in some of Europe's most expensive cities—and luxury options such as digital camera chargers for hire—hostels are shedding their image of bedbug-ridden dorm rooms and mildewed showers.

Annie Worth, 21, of Orinda, Calif., said she and her friends were used to staying in nice hotels with their parents on vacation but had chosen to stay in no-frills hostels during an 11-country backpacking trip through Europe.

"Especially with the euro being so strong and the U.S. dollar being so weak, I think a lot of younger people who had initially avoided them are staying there because they are hearing so many great things about them and money is tight," she said.