There are a large number of budget guesthouses across the road from the bus station. There are also several guesthoues a short distance out from town which several touts crowding around the bus station will happily take you to. However, be aware that when coming in winter, the majority of guesthouses are dead-locked, and even if there is anything open, it will not have running water nor hot water as the water pipes are frozen during winter. Moreoverm there is no heating as in the whole area. In such situation, it is a must to ask for an electric blanket in the sleeping places but again, be aware that electricity fails very often. On top of all that, the bus station hotel is definitely not a bargain offer either.
As of Sept '12, there is a large number of Hostels around. 25 RMB for a dorm seems to be the standard price, some will offer a bed for as little as 20 RMB. You will be approached at the bus stop right away, choose your favorite one and enjoy the free lift.
