Praiano is definitely cheaper because it is not a major tourist destination in comparison to the likes of Positano, Amalfi or Ravello.
As I have briefly stated in an earlier blog (click here), Praiano is less touristy, quieter and quainter.
If you are traveling on a budget, like Cholo and I do, it’s always best to travel during off-peak season*. We arrived In Italy on September 10th 2011. The peak season was already ebbing. Most European tourists have left to return to their countries. The Italian shops are now open. The sun was still out but it was getting cooler.
Most of all, the prices were getting cheaper.
There a lot of places to stay in Praiano:
Hotel Holiday (http://www.hotelholidaypraiano.com/accommodation/index.php)
Hotel Margherita (http://www.hotelmargherita.info/)
Hotel Onda Verde (http://www.ondaverde.it/)
Room rates vary according to room location, view, amenities, etc.
Prices starts at 80 euros up to 180 Euros; which includes breakfast.
Hotel Holiday and Hotel Margherita are affordable while Hotel Onda Verda is a splurge.
You can also check out Hostelbookers.com (click here). Just be mindful that prices here are shown on a per person basis.
We paid 110 Euros per night for our room at Hotel Holiday.
*It has been said that Peak season runs from May to September and off-peak season is from November to March. August is the month when all of Italy goes into summer vacation and the temperature might get too hot.