There are flashbackers and backpackers. If you’re the latter, you’d want to save money on accommodation so you’ll have more budget on other things like food and tours.
If you’re after a view of the volcano and not much else, you would be better off booking these fantastic hotels: (Note: It would be best to book them online at Booking.com)
Blue Dolphins Apartments
Villa Maria Damigou
Caldera Butterfly Villas