If you're looking to save some cash by staying in budget accommodations in Alicante, you'll come across albergues, pensiones, and hostales, just to name a few. It's always good to become familiar with your options so as to avoid any surprises, rip-offs, etc.
"Albergues" are your cheapest option if funds are running low. Plus, they often grant discounts for groups or for extended stays. A "pensión," indicated by a blue sign with a P, is the next step up before hitting hostal status. Don't be surprised if you walk into your room and there's no bathroom- you often either share a bathroom with others or pay extra for one of the rooms with a private bathroom.
Think of a hostal like the bridge between albergues and hotels. Like hotels, hostales- indicated by a blue sign with an Hs- have a rating system based on a scale of one to three stars. When comparing your options, keep in mind that a three-star hostal is approximately on par with a one-star hotel in terms of cost.
To find albergues, pensiones, and hostales, your best bet is to head to a central tourist area- try around the Ayuntamiento in El Barrio- and explore the streets in the area. You're sure to find an albergue, a pensión, or a hostal just steps away.