1. Location. If you have to choose between a quality hotel in a bad location and a budget hotel in an excellent location for the same price. Choose the latter. Location trumps price. Booking a cheap luxury hotel in an awful location only to spend most of your time and money in the long distance commute is not worth it. A good location means that you have a lot of choices to go eat, have a drink and entertain yourself all within walking distance to your hotel. Known as the backpackers area are Pham Ngu Lao or District 1 in Ho Chi Minh City, Gang I and II in Yogyakarta and Khaosan Road (picture below) in Bangkok.