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Friendly Purpose-Built Hostel with Ocean Views and Social Atmosphere
Backpackers By The Bay Room Options
Private Double Rooms
Perfect for couples or friends who want a bit more privacy. These cosy rooms come with daily servicing, air conditioning during the warmer months, and individual safes. You get your own space while still being part of the social hostel atmosphere. Great if you're planning overnight sailing trips and need somewhere to store your luggage.
Sleeps: 2 guests
4-Share Dorm Rooms
Budget-friendly dorms that are perfect for solo travellers or small groups. Each bed has a locker, and the rooms are cleaned daily. The small size means you'll quickly get to know your roommates. Air conditioning keeps things cool in summer, and there's plenty of space in the communal areas to hang out. These dorms book up fast during peak season.
Sleeps: 4 guests per room
Property Information
Address:
12 Hermitage Drive
Airlie Beach, QLD 4802
Property Type:
Purpose-Built Backpackers Hostel
Phone:
07 4946 7267
Total Beds:
70 beds
Check-in: 11:30 AM
Check-out: 10:00 AM
Distance to Key Locations
Airlie Beach Lagoon
1.2km (10-15 min walk)
Coral Sea Marina
3.2km (5 min drive)
Port of Airlie
700m (7 min walk)
About Backpackers By The Bay
Backpackers By The Bay has been welcoming travellers since 1986, making it the first purpose-built hostel in Airlie Beach. Perched on a small hill overlooking the Port of Airlie and Coral Sea, this boutique 70-bed hostel offers stunning ocean views and a genuinely friendly atmosphere. The owners, Peter and Carolyn Upton, are avid travellers themselves and created this space with one simple philosophy - the best travel experiences come from the people you meet along the way.
Unlike the bigger party hostels, Backpackers By The Bay is all about creating a relaxed, social environment. Just 400 metres from Airlie's main street, you're close enough to enjoy the famous nightlife but far enough away to actually get a good night's sleep. The 5-minute walk into town is easy going downhill, and while the walk back up is a bit of a hike, most people just grab a taxi for $8-10.
What makes Backpackers By The Bay special is the genuine community feel. Daily housekeeping keeps everything spotless, nightly trivia competitions help guests meet each other, and the outdoor cinema (the only one in Airlie Beach) screens movies on Sunday and Tuesday nights. The tour desk isn't affiliated with any operators, so you get honest advice about which Whitsunday sailing trips are actually worth your money. Book an overnight tour through the hostel and you'll score free accommodation and luggage storage - perfect for travellers on a budget.
What Guests Are Saying
"I really want to recommend this hostel, because it is really one of the nicest and friendliest hostels I've stayed in during my time in Australia. The staff is really nice and helpful and the owner makes the place really a home for travellers in caring and with his positive, nice attitude. I felt welcome and comfortable straight away. In the evenings there's a quiz which is a good chance to get to know other travellers, but that's not very hard in that hostel anyways, because it is quite small and the atmosphere really great."
TripAdvisor
"Greeted by friendly staff at the reception that gave us everything we needed, bed linen, keys, wifi password and trip advice. All the rooms had air con and ceiling fans which was great for a hostel at such an affordable price. We made some friends for life who were working at the hostel. We got involved in the nightly quiz, won a bottle of bubbly and had a great time meeting like-minded travellers and enjoying a bbq and cheap drinks at the bar and swam in the clean warm pool. We also had regular morning visits from the cockatoos who will gladly perch on your arms and you can hand feed them."
TripAdvisor
"The staff are great, so helpful and well used to catering for people who just need to stay for a night before going to the Whitsundays and needing reasonable priced luggage storage. There's a courtesy bus every 20 mins all day until 8pm that will drop or collect guests from bus stops or town which is great. I'd recommend here to anyone looking for somewhere to stop over while waiting for or back from a Whitsunday Islands boat trip - it's friendly, relaxed, clean and comfortable."
TripAdvisor
Heads up: It's on a hill about 10 minutes uphill walk from the Greyhound bus stop. Walking down to town is easy, but the climb back up can be tough - especially with luggage or in the heat. Most guests just grab a taxi back up for $8-10. Also, while the dorms are clean, they're on the small side, so if you need lots of space this might not be the spot for you.
What's Included
Saltwater Pool
Palm trees and hammocks
Free WiFi
Throughout the property
Free Parking
On-site car spaces
Shared Kitchen
Fully equipped
Air Conditioning
Mid-September to mid-May
Laundry
Washers and dryers
Outdoor Cinema
Sunday and Tuesday nights
Tour Desk
Unbiased local advice
The Location
Sitting on a small hill on Hermitage Drive, Backpackers By The Bay overlooks the Port of Airlie marina with glimpses of the Coral Sea and Whitsunday Islands. The hillside location means you get those beautiful ocean views, but yes, there's a bit of a climb involved. The good news? Walking down to town is easy and takes about 5 minutes. The climb back up takes 10-15 minutes depending on your fitness level - most people just catch a taxi back for $8-10.
What's Nearby
Port of Airlie: Just a 7-minute walk down the hill. This is where most of your Whitsunday day trips and overnight sailing tours depart from. The marina precinct has cafes and a few shops, plus it's right on the water. Backpackers By The Bay is one of the closest hostels to the port, which is super handy when you're heading out early for a sailing trip.
Airlie Beach Lagoon: About 1.2km away (10-15 minute walk). This free saltwater swimming lagoon is patrolled by lifesavers from 6am to 9pm. It's surrounded by grassy parks perfect for lying in the sun, plus there are free BBQ facilities. The Saturday morning markets happen right on the foreshore with local jewellery, clothes, and crafts.
Coral Sea Marina: About 3.2km away (5-minute drive or 20-minute walk along the waterfront). One of Australia's largest privately owned marinas with over 520 berths. About 80 percent of Whitsunday tours depart from here. The marina village has cafes, restaurants, and beautiful boardwalks - it's a lovely spot to wander around in the evening.
Greyhound Bus Stop: Right at the bottom of the hill, making Backpackers By The Bay the closest hostel to the bus terminal. Perfect if you're arriving by bus - though you might want to grab a taxi up the hill with your luggage. There's also a courtesy shuttle service available during certain hours.
Main Street: Just 400 metres away with all of Airlie's cafes, bars, restaurants, and shops. The walk into town follows the hill down with partial ocean views. Everything you need is within easy walking distance - supermarkets, bottle shops, tour booking offices, and the famous Airlie Beach nightlife scene.
Perfect Location for Island-Hoppers
The location is absolutely perfect if you're doing overnight sailing trips or day tours to the islands. You're close enough to walk to both marina departure points without needing to pay for taxis every morning. Most travellers stay at Backpackers By The Bay before and after their sailing trips - the hostel offers free luggage storage when you book tours through them, and often throws in a free night's accommodation with overnight tour bookings. You can leave your big backpack safely stored and just take a small bag on the boat.
Check-in, Parking & Policies
Reception Hours & Check-in
Check-in: 11:30 AM | Check-out: 10:00 AM. The great thing about Backpackers By The Bay is they'll try to get you into your room early if it's available - no waiting around until 2pm. If you're arriving outside reception hours, just give them a call in advance using the contact details on your booking confirmation and they'll sort out after-hours check-in for you.
Parking Information
Free on-site parking is available - a real bonus in Airlie Beach where parking can be expensive or hard to find elsewhere. If you've got a hire car, this makes Backpackers By The Bay a smart choice. You can also leave your car here safely while you're out on overnight sailing trips.
Important to Know
Guests must be 18 years or older - no children are allowed at the hostel. The property doesn't accept American Express credit cards. Continental breakfast is available for around $3 per person. There's no check-in or check-out on Christmas Day (25 December) or New Year's Day (1 January). The hillside location means it's a bit of a hike up from town, but that's also why it's quieter than hostels right on the main strip.
Why Trust This Guide?
We're Airlie Beach locals who've called the Whitsundays home since 2001. Over more than two decades living and working in this stunning corner of tropical North Queensland, we've personally experienced the accommodation options, walked every street, and know which properties genuinely deliver on their promises.
Backpackers By The Bay holds a special place in Airlie Beach's history as the first purpose-built hostel in town. The Upton family have been running it with genuine care and hospitality for decades, and it shows. We've watched countless backpackers make lifelong friends here and come back year after year. It's not the flashiest or newest hostel in town, but the friendly atmosphere and honest tour advice make it a favourite among travellers who want a genuine Aussie backpacker experience.
The recommendations are honest, unbiased, and based on genuine local knowledge to help make your Whitsunday holiday unforgettable.
Frequently Asked Questions
Is Backpackers By The Bay a party hostel?
No, it's more of a social hostel focused on helping travellers meet each other through activities like nightly trivia and outdoor cinema. If you want to party, the main strip is just a 5-minute walk away, but the hostel itself maintains a quieter, more relaxed atmosphere so everyone can actually get some sleep.
How difficult is the walk from the bus stop?
It's about a 10-minute uphill walk from the Greyhound bus terminal at the bottom of the hill. If you've got heavy luggage, we'd recommend grabbing a taxi for $8-10 rather than dragging your bags up the slope.
Can I store my luggage while I'm on a sailing trip?
Yes! Book your overnight sailing tour through the hostel's tour desk and you'll get free luggage storage. Many travellers also score a free night's accommodation when they book tours through Backpackers By The Bay.
What's the WiFi like at Backpackers By The Bay?
Free WiFi is available throughout the property. It's decent enough for basic browsing and social media, though some guests mention it can be a bit slow during peak times when lots of people are online.
Is there air conditioning in the rooms?
Yes, air conditioning is included during the warmer months from mid-September to mid-May. All rooms also have ceiling fans for additional cooling, which is great for budget accommodation in tropical North Queensland.
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