The recent boom of youth hostels in an expanding budget travel industry has recently seen some rather creative developments. The latest craze in Japan is, quite predictably, incredibly efficient with regards to time, money and, most significantly, space. A stay in one of the new Japanese 'cube' or 'capsule' hostels, is an entirely unique experience. Sharing a room is not required. Securing your personal belongings is no longer a concern. Though, this is not an ideal choice for anyone suffering the slightest hint of claustrophobia.

The new hostels are comprised of small capsules around the size of a single bed and measure about a metre in height. They are arranged two rows of 8 10 capsules per wall, one row on top of the other. The effect is quite bizarre, but eminently practical. There is a screen at the 'foot' of the capsule which can be pulled down and locked, for those who wish to be completely sealed in, but many prefer to leave them open for the better ventilation, and perhaps to stop it seeming quite so much like going to sleep in a coffin.

If you can get over the claustrophobia issue, the capsules are impeccably well designed. Rows of buttons line the walls, controlling the television, the radio, the alarm clock, the level of the lighting and even the air conditioning. Every capsule is cleaned meticulously every day.

The facilities attached to capsule hostels are usually comprehensive and of excellent quality, ranging from entertainments - TV rooms, games rooms and bars, to practicalities showers, dry cleaning and even sometimes clothes shops. Contrary to the European idea of hostelling, there are often some relatively luxurious services available, like massages for example. All over-night necessities are available to buy and there are even special ironing contraptions for suits, catering for the capsule hostel's most frequent customer the Japanese businessman. In fact, some capsule hostels employ a strictly men only policy.

The capsule hostel is a concept in its very beginnings. The market is broadening and more and more travellers are discovering the economic and practical advantages of this rather special kind of accommodation. At the moment, they are faithful to their clientele of the business world, but the idea is set to spread with growing publicity, and will soon be opened up to all. For long term stays, the capsule hostel may become rather depressing, but for a one-night stopover, they present a unique and eminently practical solution for the open minded budget traveller. Simon Woodroffe, of Yo! Sushi and Dragon's Den fame has stepped into this realm with a Yotel! In London.

For the time being, the traditional hostel is most likely to be the best option for budget travellers who aren't heading to Japan. Take a look at Hostelbookers.com for a great directory of hostels with customer reviews and ratings, so you can take a look before you book.