Pros
- Campsites are usually cheaper per-night than hostels, particularly for two people.
- Always get a private room at no extra cost - no sharing a dorm with snorers and people who arrive/leave at unsociable times.
- Guaranteed to get a comfortable bed (hostel beds vary a lot).
- Don't need to share the kitchen with other guests.
- Don't need to share the lounge (sometimes with a TV) with other guests.
- Don't need to unpack and move a lot of stuff from the car into the accommodation on arrival and back again (plus the hassle of re-stowing the luggage) when you leave.
- Have your own personal space to relax in without feeling self-conscious and worrying about breaking rules or getting things dirty etc.
- You know where everything is [apart from shower blocks and other campsite facilities], so less feeling of dislocation when you arrive tired after a long day's driving and sightseeing.
- Campsites are more common than hostels, so probably less difficulty finding one near where you want to stay.
- Possible to camp in a layby or service station etc. at a push (eg. if you can't get to the intended destination for some reason).
- More comfortable to sleep in than a tent.
- Quicker and less hassle to put up and take down than a tent.
- Less unpleasant in wet weather than a tent.
- Plenty of storage space in the caravan, so the car doesn't need to be packed to the roof with food, clothes, sleeping bags and airbeds, etc.
- High initial cost.
- Makes driving between accommodation a bit more difficult.
- Somewhat increased fuel consumption.
- Ferry fares more expensive.
- Some (very steep/narrow) roads are impractical to tow a caravan on.
- Need to drive a bit slower, particularly on hilly terrain.
- Need somewhere to store it between holidays.
- Some ongoing maintenance will be required (not much).
- Limited and cramped cooking facilities.
- Because it won't be a full size caravan, there won't be room for a toilet or shower so would need to use the camp site facilities.
- Might not have room for a heater, and if so could be too cold to use in winter.
- Might not have a proper fridge.