I have stayed at hostels all over the world (including once in NY!). What age group are you in? The younger you are, the far easier it is to 'rough' it. Are you travelling alone or with someone? Some hostels are dorm style, or have small private rooms. On the one hand, if you are travelling alone, hostels give you an opportunity to meet up with other travellers, share tips and even get together to travel together. Could you accept sleeping in a room with strangers? (There is the security aspect to think of as well, without even venturing out in the hestel neighborhood!). Can you accept having them snore, be messy, or make noise when you're trying to sleep? I have travelled to over 70 countries and with hostels you can have the best of times or the worst of times. I stayed at a private hostel in Maui and I can honestly say, it was one of the best times of my life! My cousins just booked a 2 star room on Waikiki for $60. That's probably the bare bones cheapest rate they could get for a hotel on Waikiki. From what I could find from my searches, that is probably the cheapest. To them, they could care less what the hotel room is like, their priority is strictly finding the cheapest hotel rate without it being a hostel. So you have to ask yourself--can I put up with the possible hostel inconveniences to save around $30? That $30 could pay for some of the car rental/parking. Do you really need a car every single day? Honolulu is well known for having a pretty comprehensive and reasonably priced transit system. You might also consider planning so that you rent a car just for those days that you absolutely have to. With regards to staying in a 'slum' area...you have to remember that Hawaii is an American city that has it's share of American crime. Would you stay in the same kind of area in NJ or NY? If that doesn't bother you, then maybe a hostel in a cheap area is okay for you.
