With its myriad of backwaters, verdant greenery and sun-soaked beaches, Alleppey was one of the highlights of India for me!
But, being such a tourist magnet, deciding exactly where to stay can be challenging. Navigating budget backpackers and plush eco-resorts is no easy feat.
That’s why I’m here to sus out the best areas to stay in Alleppey.
Whether you’re on flashpacking or backpacking, flying solo or have the whole tribe in tow, this neighborhood guide takes the heat off finding your perfect digs.
Let’s get into it!

Punnamada Backwaters
The backwaters of Alleppey are the main reason for travelers to come to this region, and whatever your budget, we heartily recommend getting out on the water.

Alappuzha Beach
Even in such a tourist hotspot, there are plenty of budget accommodation options to be had in Alleppey. But for the cheapest digs, Alappuzha Beach is our pick for where to stay in Alleppey on a budget.

Kainakary
Kainakary is a village that lies to the east of Alleppey city center and is blessed with serene nature. A realm of water, it is a network of waterways, lakes and ponds.
Alleppey’s Three Best Neighborhoods to Stay in
Often dubbed the ‘Venice of the East’ India travelers flock to Alleppey to experience its winding waterways. Lush rice paddies. Christian churches rubbing shoulders with Hindu temples. Intoxicating Karalan flavors. Golden beaches that will make your jaw drop.
Alleppey (often known by its younger name, Alappuzha) is located in the southwestern Indian state of Kerala. Kerala is flanked by a tropical coastline lapped at by the Arabian Sea. Alleppey sure knows how to reap all the benefits!
Let’s take a look at the 3 best neighborhoods to stay in Alleppey. They’re each a little different, depending on the type of experience you’re after.
1. Punnamada Backwaters – Where to Stay for Your First Time
The backwaters of Alleppey are the main reason for travelers to come to this region, and whatever your budget, we heartily recommend getting out on the water. If it’s your first time in town, Punnamada puts the backwaters right on your doorstep.
This area is dense with a variety of accommodation options of varying price as well as houseboats. There are a number of temples and churches to admire in the neighborhood. And, of course, troves of eateries where you can get your hands on authentic Keralan cuisine.
- Best For: First timers, houseboat stays, scenic relaxation
- The Vibe: Laid-back, dreamy, peaceful
- Proximity to Airport: 1 – 1.5 hours from Cochin International Airport
- Transport Level: Easy, rickshaws are everywhere and so are boats
- Budget: Budget to luxury, there’s something for everyone here
- Crowds: Moderate to higher in peak seasons

The Broke Backpacker is supported by you. Clicking through our links may earn us a small affiliate commission, and that's what allows us to keep producing free content 🙂 Learn more.
Top Things to Do in Punnamada Backwaters
- In June, watch practice sessions for the snake boat races which take place in August. Or, watch the grand finale in August itself!
- Book yourself a backwaters cruise, of course! Use a reputable operator such as Alleppey Backwaters, Kerala Backwaters or Jalasree Backwater Cruise. Check the most recent reviews before you choose
- If you’re on a budget join take a shared ferry service along the backwaters
- Dedicate a few hours to a traditional Ayurveda massage
- Visit the Kidangamparambu Sreebhuvaneswary and Mullackal Devi temples – two of Alleppey’s most fascinating
- Find the graceful statue of a mermaid at the side of the Vada Canal
Paddy N Canal Homestay | Best Airbnb
Enjoy peaceful canal and green paddy views from this top-rated homestay, where you’ll have your own private room. You’ll have access to a balcony, terrace, garden, kitchen and dining room. The hosts are fantastic and you’ll get to enjoy a homecooked breakfast every morning!
Course of Life Alleppey | Best Hostel
This epic hostel is set on the shores of Vembanad Lake, the largest lake in Kerala. It has a garden, books, board games, and friendly staff will also help you organise food and kayaking tours. There is a huge yoga hall to make the most of and the dorms are intimate, sleeping five to six guests.
Sterling Lake Palace | Best Hotel
Comfortable, simply and in an excellent location, this 3-star hotel is a strategic spot to call home during your stay in Alleppey. Rates are reasonable, so you can put your hard earned pennies towards making the most of the local area. Rooms have air con and a huge pool to cool down in.
2. Alappuzha Beach – Where to Stay in Alleppey on a Budget
Alappuzha Beach is lined with backpackers and low-cost homestays and guesthouses. Many of which are a few yards from the sand!
Now, about that sand… Alappuzha Beach is one of the most beautiful beaches in Kerala. This long strip stretches down the coast and provides sensational views far across the Arabian Sea.
You can use your time participating in water-based activities or simply lap up the sunshine and beach vibes. Make sure you plan a day trip over to the backwaters!
- Best For: Backpackers, sunsets, beach walks
- The Vibe: Relaxed, slightly live, coastal
- Proximity to Airport: 1.5 – 2 hours from Cochin International Airport
- Transport Level: Easy, lots of taxis and rickshaws nearby and well-connected to the airport
- Budget: Low, lots of backpacker options
- Crowds: Moderate to high, especially evenings and weekends

Top Things to Do in Alappuzha Beach
- Hit the beach! If you feel adventurous, you can parasail, surf or hire a kayak
- Visit the quaint, red and white striped lighthouse
- Fill your tummy with the catch of the day at the Zakariya Bazar Fish & Meat Market
- Browse antiques and precious gemstones at the Revi Karuna Karan Memorial Museum
- Wander down the historic beach pier for an unforgettable sunset
- Visit the nearby temples – ask your Alappuzha Beach accommodation for a map
Cinnamon Room | Best Airbnb
A five minute walk from the beach, this family homestay features unique stays in a 1946 heritage home. There is a spacious verandah where you can kick back and enjoy the sea view and a small gym for those who want to keep fit whilst on the road. There’s even a whimsical garden you’ll love relaxing in!
Zostel Alleppey | Best Hostel
Part of India’s most trusted backpacker hostel chain, you’re in safe hands with the beachside Zostel Alleppey. Chill on a rooftop hammock and mingle with other travelers or surf the free Wi-Fi. Budget, air-conditioned dorms are available, making this the ideal budget travel spot in the area.
Thoms Beach Homestay | Best Hotel
Get the full castaway experience with your own beach cottage! Facilities are simple but cute and prices will appease even the most budget-conscious backpacker. The beach is right there on your doorstep so you can jump in the sea before sipping your morning lassi.
3. Kainakary – Best Area to Stay in Alleppey for Families
A realm of water, Kainakary is a network of waterways, lakes and ponds. As a result, this means there are no vehicles besides boats to be found here.
Besides tourism, agriculture is a major source of economy for the locals, so you can see bountiful areas of paddy fields tended to by farmers.
There are a number of eco-lodges and homestays to rest your weary traveler’s head. Besides those, you can also find luxury resorts that are affordable by western standards.
- Best For: Families, authentic backwater life, slow travel
- The Vibe: Quiet, rustic, immersive
- Proximity to Airport: 2 – 2.5 hours from Cochin International Airport
- Transport Level: Slightly tricky as you’ll need boats to reach places
- Budget: Budget to mid-range
- Crowds: Low – this is one of the least touristy spots in the area

Top Things to Do in Kainakary
- As with the Punnamada Backwaters, the best thing to do in Kainakary is to get out on the water
- Rent a kayak, join a boat cruise – do either, or do both if you can!
- Hire a bike or hike the local land trails
- Spend lazy afternoons in your homestay of choice gorging on delicious local cuisine
- Try your hand at fishing – enlist a local guide to help you
- Potter around the local residential areas
- Connect with this pastoral culture
Alappey Backwater Homestay (Kuttanadu) | Best Airbnb
This expansive home has plenty of space to fit the whole family! There’s a wide verandah to soak up the views from and the live-in hosts will be happy to organise local activities and outings.
Breakfast is provided and the father and son duo will cook additional meals fresh from the market.
Johnson’s Homestay – Ecohouseboat | Best Hotel
With plenty of family rooms available, this unique accommodation is a great pick for where to stay on a budget as a family. Rooms come with private bathrooms and there’s ample outdoor space where you can use the free wi-fi to plan the rest of your trip.
Breakfast is included.
Last Minute Questions…
Here’s what people usually ask us about the areas of Alleppey and where to stay.
Don’t Forget Travel Insurance for Alleppey
Maybe you’re wondering, do I really need travel insurance? Let me tell you… YES!
Especially when you’re travelling to a country like India, if things go wrong (and yes, they sometimes do) having good travel insurance is be a saving grace.
ALWAYS sort out your backpacker insurance before your trip. There’s plenty to choose from in that department, but a good place to start is Safety Wing.
They offer month-to-month payments, no lock-in contracts, and require absolutely no itineraries: that’s the exact kind of insurance long-term travellers and digital nomads need.
SafetyWing is cheap, easy, and admin-free: just sign up lickety-split so you can get back to it!
Click the button below to learn more about SafetyWing’s setup or read our insider review for the full tasty scoop.
Which Part of Alleppey Should You Choose?
If you’re looking to submerge yourself in the culture of water, there’s nowhere quite like Alleppey. This is a place where you can slow down after the energy of other Indian cities. We love ‘em, but sometimes you just need a spot to recharge.
In terms of which is the best neighborhood to stay in Alleppey, we’ve picked our three favorites. Overall, we recommend the Punnamada Backwaters, especially if you’re looking where to stay your first time in Alleppey. This puts you within easy reach of the backwaters and both the city center and beach and within easy access.
We’d encourage any guest to spend at least one night on a houseboat such as Johnson’s Homestay – Ecohouseboat It’s a once in a lifetime experience after all!
We love that Alleppey has plenty of cheap digs for backpackers and budget travelers. The Course of Life Alleppey is our favorite hostel in Alleppey for location, affordability and ambience.














Houseboat trips are a popular activity in Alleppey. These boats travel along the wide backwaters, 250 square kilometers from Kollam to Kochi. Experience a private trip on a houseboat that mixes old-fashioned charm with modern comforts. Enjoy special services like quick check-in, tasty meals onboard, comfy amenities, and meeting locals in Alleppey. It’s a great way to explore Kerala’s beautiful backwaters.