Even by Swiss standards, Zermatt is a very expensive destination. Hostel Matterhorn provides a much-needed in-resort alternative; it's well-located, and although basic, it provides affordable accommodation for budget travelers. At the top of the village, close to the ski slopes, hiking, and biking trails, the hostel occupies a rustic timber chalet built in the '60s. Rooms are clean and no frills, but perfectly adequate, with shared bathroom facilities. Book in advance for weekends during the ski season, and bring your own sleeping bag.