Families are finally catching on to the college students' secret--for no-frills budget travel, nothing beats staying at a hostel. Dismiss outdated images of dingy dorms piled high with backpacks. Many hostels around the country now welcome families with simple, private rooms and even a few luxuries like hot tubs and pools. You'll also find homey common areas, fully equipped kitchens, washers and dryers and perks such as bike and boat rentals. What's more, a number are historic landmarks. Membership in Hostelling International-American Youth Hostels (free for those under 18; $28 for those 18-54; $18 for those over 54; $250 for lifetime for all ages; call 202-783-0717), an association that inspects and licenses all member hostels, is not always required, but it helps with peak season reservations and lower rates. For summer trips, reserve family rooms at HI-AYH hostels in spring.

Read on for one of our favorite spots, the Mississippi Headwaters Hostel in Lake Itasca, Minnesota.

MISSISSIPPI HEADWATERS HOSTEL

LAKE ITASCA, MN: This beautifully restored log building, once the headquarters of Itasca State Park, sits among the park's virgin pines, just a short distance from the Mississippi River's headwaters. Just outside your door lie 17 miles of bike trails and 30 miles of hiking trails. Bike and canoe rentals are across the road, the beach is a short walk away and the park offers junior naturalist programs. Open year-round. Nightly rates are $14-16 for adults and $9 for children under age 18. Non-member families pay $3 more. Call the Mississippi Headwaters Hostel at 218-266-3415.

Valerie Wolf Deutsch coauthored the newly revised guide THE BEST BARGAIN FAMILY VACATIONS IN THE U.S.A.

Please keep in mind that phone numbers, addresses, and prices are subject to change. Updated August 2005.