Do I need a rental car to save money?

No. Rental cars and ATVs are expensive and parking in Fira or Oia is a nightmare. Use the public bus system (KTEL) to travel between villages.

Is it worth paying extra for a caldera view?

Only if your budget allows. You can get the same view for the price of one cocktail at a cliffside bar in Fira, which is much cheaper than paying for a hotel room.

Finding Affordable Hotels in Santorini

Skip the Oia and Imerovigli caldera-view hotels and book in Fira or Karterados. You can save 60% by staying on the east side of the island near the volcanic sand beaches, where prices drop significantly compared to the sunset-facing cliffs.

Choose the right village. Look at Karterados, Mesaria, or Perissa. These towns are 10–20 minutes by bus from the main sights and offer rooms for $80–$120 per night, whereas cliffside rooms in Oia start at $350+.
Use the 'Show on Map' filter. When using booking aggregators, use the map view to ensure your hotel is within walking distance of a KTEL bus stop. Santorini’s bus network is cheap ($2 per ride) and connects all major hubs, so you don't need to pay a premium for central lodging.
Book outside the July-August peak. Prices for the exact same room drop by nearly half if you visit in late May or late September. Avoid the peak summer months entirely if you are on a strict budget.
Prioritize 'Breakfast Included' deals. Dining out in Santorini is expensive. Booking a room that includes breakfast can save you roughly $20 per person per day.

Do I need a rental car to save money?: No. Rental cars and ATVs are expensive and parking in Fira or Oia is a nightmare. Use the public bus system (KTEL) to travel between villages.
Is it worth paying extra for a caldera view?: Only if your budget allows. You can get the same view for the price of one cocktail at a cliffside bar in Fira, which is much cheaper than paying for a hotel room.