hi, brazil doesn´t have a lot of hostels, unless for the very touristic cities as rio and salvador. even in sao paulo it´s hard to find. to travel cheaply u can try bus (there´s no train) or low cost air companies such as www.voegol.com.br, www.oceanair.com.br and www.webjet.com.br. but they are not as low cost as european ones. in brazil capitals there are lots of formule1 and ibis cheap hotels so if u cant find a hostel try these hotels.