Ahola,
Oahu, on a budget can be done... do not be deterred from Hawaii, which is easily done when you search for places to stay online and are faced with lists beginning with rooms starting from $179! Fear not fellow travelers, I stayed in Waikiki for a little over a week on a very tight budget and hopefully my experience's will help you out!
Arrival in Honolulu airport, the first thing I recommend you do is call Roberts of Hawaii to arrange a shuttle to any hotel or hostel, you will find courtesy phones scattered all around the airport! Roberts offer a really great service, friendly staff greet you at the airport, chat while you wait, help you with luggage and whisk you off to your hotel, hostel or wherever, I found they really forthcoming with local info also! Its $12 one way or $20 return, which is an absolute steal for such a fast and friendly service.
I stayed in 3 hostels in Waikiki during my visit, all within 2 minutes walking distance to the beach, awesome eh...
First up Waikiki beach side hostel, less than a block for world famous Waikiki Beach and an awesome atmosphere this hostel is for the party goers for sure...the common area is a hive of activity always, your sure to meet someone to party or hang with here. The staff are really accommodating, friendly, fun and fountains of knowledge on anything Hawaii. Rooms are clean, as are bathrooms, key cards for each room and lockers if you so wish... Breakfast included in the rate is Tea, Coffee and Toast. The only down side here was that the kitchens in each dorm are also act as bedrooms, so you run the risk of smelling like bacon or whatever happens to being cooked up on the day... A small price to pay for the fun you,ll have here! Voted the number 1 hostel in Hawaii again and again, I can see why.
Next up, Polynesian Hostel, also 2 minutes walk to the beach, the Polynesian is the cheaper neighbour to the Beach Side Hostel! Dorms from $20, include breakfast, but its minimal so be prepared to have to stock up on breakie foods! A large hostel, with friendly staff and a great location. Its clean, but very old and worn, which may give the illusion that it is dirty but house keeping came everyday on my visit and did a fine job! These guys also do some awesome day trips to beaches that we can only dream of and real cheap surf board rentals! Thumbs up form me...
Waikiki Backpackers or Ahola hostel as its also called, can only be found on www.hostelworld.com as far as I know... its a little more expensive that the others at $36.00 per night including breakfast, which is eggs, toast, tea and coffee. Its also a little more chilled out here, very peaceful I found! 3 minutes walk to the beach, free use of snorkel gear, and moped rental onsite which is pretty sweet! The place is super clean, awesome showers, huge fridges and kitchenettes in each room are all an added bonus.
Mahalo
