As hotels are more strict on the official exchange rates than most others, accommodations in Libya can become very expensive. Cheaper hotels are very cheap if you pay with dinars obtained from the black market, but not overly expensive even at official rates.
Tripoli is the most expensive city in Libya, what hotels are concerned.
Camping is fully accepted in Libya, and as many places either have only expensive hotels, or nothing at all, bringing the necessary equipment for camping is recommended. However, always ask around for local preferences, some local authorities will not like it if you camp without notifying them first. Libya is not a good country for gourmets, there are few restaurants, and the Libyan cuisine is one of the dullest of North Africa. When travelling in Libya, you should expect to eat very simple food at times. If you find restaurants in smaller places, you should consider yourself lucky.