For stunning views and local flavor at bargain rates, this comfortable but simple hotel in Praiano, the coastal town a few kilometers southeast of Positano, is an excellent choice. Done up in spare, white and blue décor, the spacious and subdued rooms have the uncluttered, almost spartan feel of a classic Italian beach hotel, and there are some nice modern touches such as docking stations for iPods. Exactly half of the rooms here have terraces with sea views that extend all the way to the rock stacks off Capri, so be sure to secure one of those. If you're unsure about booking a hotel outside Positano proper, know this: Located a scenic 10-minute bus ride away from Positano, Praiano is an unsung treasure. It's a one-stoplight town a world away from the hustle and bustle of the more touristy Amalfi Coast locales, but nevertheless a lively village where everyone knows everyone else—and they all hang out here, at Le Fioriere.

You see, in addition to being a hotel, Le Fioriere is also home to a happening, intimate nighttime scene at its lobby and sidewalk bar. This is where the native sons of Praiano—everyone from the boat captains to the 5-star hotel concierges—come to let off steam among friends and newfound acquaintances (ie, you). If you're the type of traveler who really likes to get into the local culture and can forgo some cushy amenities in the process, try Le Fioriere. After even a three-night stay, you'll be much closer to the soul of la vita amalfitana than anyone staying at the more luxe places in the vicinity.