There aren't many budget options accommodations in Patagonia; the luxury market, on the other hand, is booming. Patagonia is a "once-in-a-lifetime" destination that most people are happy to splurge on, and the increasing cruise culture doesn't ease accommodation prices. In most cities and towns you'll find a mix of big, expensive hotels with comfortable resorts, local flavor estancias, and small B&B-style hosterías.
The terms hospedaje and hostal are used interchangeably in the region, so don't make assumptions based on the name. Many hostals are fine hotels—not youth hostels with multiple beds—just very small. By contrast, some hospedajes are little more than a spare room in someone's home. Campsites in the national parks often have shelter and can offer some of the best views in Patagonia.