Need cheap hotels in Melbourne for a family holiday? Travelling with children can be expensive before you even start, so you want to make sure that you find some accommodation that is affordable, yet nice enough to actually be a holiday.

If you are traveling with smaller children, it is far better to stay outside the CBD, where you have a bit of space and access to parks. St Kilda, is a great area to stay with a family as there is the beach with lots of activities that won't cost you the earth.

The Melbourne CBD is a great place with older children, as you are right in the middle of all activities, near the sports venues and other Melbourne attractions.

Whilst there is am array of cheap hotels in Melbourne, do make sure you check out other accommodation options. There are self-contained apartments or guesthouse-style lodging, as well as backpacker hostels that offer family rooms at pretty cheap rates.

For a family room in a backpacker's hostel you can expect to pay around AU$150 per night for a family of four. That is probably as cheap as you will be able to stay in Melbourne.

However, backpacker's hostels are not everyone's idea of a holiday. If you will be in Melbourne for at least a week, you can rent a temporary home in some of the inner suburbs like Abbotsford, Collingwood, Clifton Hill, Fitzroy North, Richmond or St Kilda from around AU$150 per night.

Staying in‘your own home' is a nice way of being part of the Melbourne's life. In the inner suburbs is where Melbourne's local life is at its best. You find cheap eateries, cafes and interesting shops that the locals shop at.

There are many hotels, motels and serviced apartments in the three to three and a half star range at the edge of the city. There you can stay with your family at around the AU$200 mark per night.

If you can manage to travel with your family outside school holidays you have a better chance to get a good deal on cheap hotels in Melbourne. This is tricky with older kids, but while they are young I reckon it is best to take advantage of the outside school holidays zone.

There are other times when it is difficult to get good cheap hotels rates in Melbourne. This is during the Melbourne events that draw large interstate crowds, like the AFL Grand Final in September, the Melbourne Cup in November, the Australian Open in January and the Grand Prix in March. If you have to travel during these times, you will need to book cheap hotels Melbourne in advance. That way you have the best chance of getting a reasonable rate.

During the winter and Melbourne's off seasons, you tend to get very good rates on the internet at short notice. This may be a gamble when traveling with the whole family, but worth the savings.

If you are booking with a hotel directly, you tend to pay the rack rate,(the rate before any discounts are applied). However, hotel rates are not fixed but determined by demand. To get the best discounted cheap hotels Melbourne, book through the internet with one of the hotel's booking partners.