As you might expect, there are some spectacular hotels in Sorrento, some with prices to match. The mid-price option is a little thin on the ground but it's there if you look carefully and decent budget accommodation is as elusive as a snow leopard but, as with the Amalfi Coast, the key to a good stay at a reasonable price is flexibility.
Location: don't rule out hotels that are a little further out, such as Via Capo, Sant'Agnello or even Piano; there is a decent bus service that is cheap, regular and relatively quick, and many hotels, such as Grand Hotel Aminta, have a shuttle service so you get the benefit of cheaper accommodation, a bit of peace and quiet and you're still close enough to the action.
Time of year: you'll pay a premium for visiting in high season, so consider a trip at the beginning or end of the season; in March and October you will often have lovely, warm weather and miss most of the crowds.
Book ahead: once you've decided where and when, book it. In spite of the fact that there is a wealth of accommodation available, Sorrento isn't getting any less popular, and if you want to be sure of getting your dream holiday, book in advance.