Luxembourg is an incredibly small and rich country in western Europe. It is well worth spending a couple of days here to experience what the country has to offer, however expect your wallet to evacuate money like it is going out of fashion if you are planning on eating while you are here -- especially eating out. There are very few Luxembourg hostels in the city centre, so it is worth booking your Luxembourg hostel in advance to make sure you have one and don't wind up paying out for an expensive hotel. Also check whether your Luxembourg hostel does free breakfast, as this can save you a penny or two.
There are quite a few different museums in the centre of the city that are free; if you wanted to splurge, you could get a Luxembourg card, which gives you access to different attractions across the country, not just in Luxembourg City. It also includes transport to get around to different parts of the country and around the city using the local buses. Most of them go quite frequently and the Luxembourg hostels and information centres can help you get information on how to navigate the buses. The transport in Luxembourg is quite cheap. It is worth getting a full-day ticket and taking a trip to one of the other towns outside of the main city if you have a couple of days.
If you head east, you can find the small towns that incorporate the area of the Mullerthal trail, where there is an extensive amount of routes for hiking. They refer to it as the little bit of Switzerland in Luxembourg and it has beautiful scenery. There are some Luxembourg hostels in an around this area where you can stay, if you wish to explore it more. The medieval town of Echternach is the oldest city in all of Luxembourg and is a great place from which to start. There are a couple of Luxembourg hostels here; some are a little way out of the centre, so double check where your Luxembourg hostel is if arriving by bus. There is also a Luxembourg hostel each in Larochette and Beaufort, if you wish to do more extensive hiking and stay in and around the region. It is always a good idea to book in advance for this reason, especially in the summer months when traveling the region is more popular.
Further south of this area, you can go and stay in a Luxembourg hostel in Schengen, where Luxembourg borders with both Germany and France; this is the birthplace of the free movement arrangement within Europe, of which twenty-six countries are now a part. There is a museum here that details this history. Other than that, there isn't a great deal to do here.
Vianden in the northern part of the country also has some spectacular Medieval castles to explore and is quite charming. There are some really pretty views from the top of the chairlift also. There are Luxembourg hostels in Vianden and Schengen, however there are not many, so it's worth booking in advance if you know you are heading in that direction.
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Beaufort is situated on a plateau in Luxembourg’s Little Switzerland. The symbols of the village are the renaissance castle, the impressive ruins of a 12th century castle and the neo-gothic church.
"The small village of Hollenfels in the west of the country sits quietly on a hill overlooking the river Eisch valley. Its most prominent landmark is the 14th century castle, with its impressive donjon (height: 39m). Its location makes it an ideal spot to start exploring the well-known Valley of the Seven Castles …
I found Luxembourg City to be beautiful. I was only there for one day and as that might be enough, I could have stayed another day. There is a beautiful view. I would most definitely go back to Luxembourg City.