London for $10 a night? Yes, but in snug quarters

In London, one of the most expensive cities in the world, a bed in a dorm room at an internationally affiliated youth hostel usually costs at least $35 a night. So the idea of getting a clean, safe place to stay for as little as $10 a night sounds incredible. It may be a reality, thanks to British entrepreneur Stelios Haji-Ioannou, who created Britain's no-frills EasyJet budget airline.

He was inspired by the capsule hotels of Japan to create EasyHotel (www.easy hotel.com), which is to open by the end of the year in Kensington, a section of London that's popular among backpackers and budget travelers. A former 20-room hotel at 14 Lexham Gardens is being outfitted to house EasyHotel's 9-by-10-foot prefabricated rooms, which are just large enough for a person to stand in. Its 34 rooms will have a private toilet, shower, mirror, linens and Japanese-style floor-level platform double bed.

The downside: The room's size and lack of windows could make you claustrophobic, and you won't have the same opportunity to mix with other young travelers that you would at a hostel.

The earlier you book, the cheaper the room. Rooms will average $55, but the cheapest rate will be $10. A last-minute reservation may be as much as $109.

The company expects its clientele to be backpackers, self-employed business people and families, said James Rothnie, EasyHotel vice president.

Haji-Ioannou's recognizable orange EasyGroup brand already extends to an airline, car rentals, pizza parlors and cinemas. Next summer, he plans to introduce a cruise line (www .easycruise.com) in the western Mediterranean that will feature the same prefabricated rooms as in his hotel. With the 180-passenger ship, he plans to "unpackage" cruising. EasyCruise passengers won't have to sign on for a minimum of seven days' sailing or pay a price that includes all meals. They'll be able to cruise for one night or several, and food will be sold separately. Rates are expected to begin at $52 per cabin per night, with lower fares for early bookings.



Singapore hostel

In Singapore, a new 40-bed hostel opened in July in Bugis Village, near Pasar Malam, a popular night bazaar. Bugis Backpack- ers (www.bugisbackpackers .com), which can accommodate 14 women and 26 men in segregated dormitory rooms, is at 162B Rochor Road, within walking distance of Chinatown, Little India, Boat Quay and Bugis Station. A bed in a shared room costs $12 a night.

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Lucy Izon is a Toronto-based freelance writer and author of "Izon's Backpacker Journal." Her website is http://www.izon.com .