Youth Hostels are a cheap option and I would recommend them, particularly in the smaller cities and countryside where ryokans tend to be expensive and capsule hotels are absent. See www.jyh.or.jp/english/index.html for more information. I prefer capsule hotels in the city because I love a hot bath before and after going out, and also they have the advantage of being 24 hours and they are conveniently located close to entertainment areas (bars) in the cities, so I dont need to get an expensive taxi. Capsule hotels are similarly priced to youth hostels.
I guess both options should be tried as an experience. Capsule hotels are really only suitable for single men. There are a few I believe that cater to women, but they are rare. There are no private baths to my knowledge, so be prepared to flaunt you penis. I'm sure you'll put on a great show. The towels don't offer much shelter if you are not well endowed. But rest assured there will not be any Japanese walking around laughing at you in any language you understand. :)
I guess both options should be tried as an experience. Capsule hotels are really only suitable for single men. There are a few I believe that cater to women, but they are rare. There are no private baths to my knowledge, so be prepared to flaunt you penis. I'm sure you'll put on a great show. The towels don't offer much shelter if you are not well endowed. But rest assured there will not be any Japanese walking around laughing at you in any language you understand. :)
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