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Um, yes, there is a big difference all around between hostels and hotels. Unlikely you would get a true hotel for under $100 in the spring or summer, but yes, hostels abound at all levels of price and quality. Each to his own Camino, options abound.Um, no, 100 to 150 euros a night is not low budget. Not even in Barcelona, at this time of the year. You can get a room in a decent hostal for 30 euros for two people.
But it's your money, spend it how you like.
Easy enough to just knock on the door and ask, out of the high season. Or even go to the tourist office and tell them your top price.
My reason to cancel was technical problems with the airplane out of Santiago. It meant leaving at 4 am instead of 9 pm the evening before. Sit and wait. When I canceled, I had to pay the full price. On AirBnB the owner of the B&B has options. One of them stipulates he gets the full price when someone cancels. I learned that it is good to have a good look at what is offered -- including the small print!I found what looked like it would be a great apartment on AirBnB last year but was forced to cancel due to injury.