Caracas, the capital city of Venezuela, is located in the northern center of the country. There is little culture of hostels in Caracas, as well as in the rest of the country -- rarely will you find one. Maybe this is due to unsafe environment that characterizes the city, as Caracas is the sixth-most dangerous city in Latin America. The few hostels in the city have been reported negatively, with theft both inside and outside the hostel; they are mostly located in the “red zones” (danger zones) of Caracas. So it is better to stay in a hotel and spend more money to be safe.
The area where there are some hostels and cheaper hotels is called Sabana Grande, and it can be reached by the Metro (public buses are another transportation option). For safety, it's better to search something in the area of Chacao or Altamira.
Caracas Airport is located in La Guaira, about forty kilometers from downtown; buses connect from Bella Artes metro station. The two main bus stations are La Bandera and Terminal de Oriente, from which you can reach any city in the country as well as international buses going to Colombia, Peru, and Chile. There are private terminals, like Rodovias and Aerobuses de Venezuela, which are less busy then the public ones, and localized in safer areas of the city.
Caracas is well known for its high quality and international cuisine, and you should try the “arepas,” which can be found in every corner of the city. It is also well known for its nightlife -- many nightclubs and many restaurants are located in the area of Las Mercedes.
When you're in Caracas, visit the Avila National Park, a mountainous axis that separates the city from the Caribbean coast; it's nine hundred fifty meters long and its maximum height reaches over two thousand five hundred meters on her sea level. The Avila is known as the "lung of Caracas" -- it is a big green area, full of vegetation that is accessible by funicular, on foot, or by car, and from above you can admire the entire city.