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What's the best way to get cheap housing for a group of 5? Book ahead? Get one room?

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We're traveling as a group and paying individually for rooms seems ridiculous. Is it possible to rent a room and just pay a flat rate instead of per person? We're looking for the most reasonable rates, esp. at hostels. Any ideas? We've heard conflicting information regarding whether you should book ahead or just go and look for housing when you arrive. Thoughts? Your help is VERY much appreciated.
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