When people go on vacation but can't afford to stay in hotels, what do they do?

A bed and breakfast is cheaper,so is camping. Hostels are very popular in Europe. Another option is time sharing a house or apartment.

Camping or stay with friends or family.  There are also sites like airbnb where people will rent out a room or even their whole apartment/house.

I once met a young couple who wanted to have a honeymoon at the Great Barrier Reef but they couldn't afford it. So they took a bus trip to the Reef, spent the day scuba diving, stayed one night in a youth hostel, went white-water rafting the next morning, and caught the bus home again that night. They turned their honeymoon into an adventure. I hope they're having a great life. They deserve it.

You don't need luxury accommodation to have fun.

Stay in a campgound, sleep in the car or as I did when younger, sleep under the boardwalk down the Jersey shore.

Stay at a Motel 8. Unless it was your plan to vacation at a resort, I don't see the problem. Go do your thing at the vacation destination, go inside the motel, sleep with the rats, wake up and go outside to enjoy the scenery. You'll have much more fun.

I remember being booked a 4-star or something during one of my few trips to Bangkok. It was great, staff were wonderful, and the concierge was the man.  Turn in my room the next morning, called a cab to take me to the dirt motel right on the street level where all the fun was located at Khaosan Rd. $5 dollars a night, meals for $1, big crowds, loud music, street vendors.... That was more like a vacation.

I didn't leave a first world country to be placed in a fancy hotel room that resembles it. So bottom line is, you don't need a hotel. You can sleep in your car if you have to.

Can't afford to go I don't go

A Bed and Breakfast or Guesthouse can be the way to go - often the personal service and homely atmosphere, as well as convenience make these little gems a much nicer experience than a sterile hotel environment - a particular favourite for example is a great little guesthouse in Devon called Southcliffe - the owners are so friendly and its ideally situated for Exmoor vacations!

They find affordable accomodations which could plausibly mean they camp, or stay with family or friends, or find hotels/hostels that fit their budget .. If they can't, they don't go.

There are places called Hostels, or you can camp out . . Either in tent or vehicle. Bring a portable camp stove and you can cook as well.

You have to search some cheaper hotels,if they  provide great hospitality and all amenities  to you ,then it is a great place to stay with your family.

Every traveler has the same issue when it comes to accommodation cost because it is going higher day by day, but I have found some great idea to make it cheaper. Search for discount codes as very hotels offer a voucher for booking.

There are a lot of options. Hostels for example or you can rent an apartment. Either way, your vacation won't be as comfortable as it could be. Well, there are some places where it doesn't really matter where to live when you are on a vacation, Los Roques for example - https://losroques-travel.com . But otherwise the statement is right.

Well, when people decide to go on a vacation, they plan
things according to their budget. If they cannot afford a hotel, there are
other alternatives. They can check out bed-and-breakfasts or choose to stay at
someone’s house as a paying guest. Research a little bit about the place you
will be visiting. I am sure you will find something that will suit you.