Being a seaside holday resort there are loads and loads and loads of hotels/guest houses. Depends what you want. If you are on your own you can get a good B&B for around 20UKP per person per night. Some hotels go up to 70UKP or more but you won't get much more for your money!If you are with family or in a group I can recommend the Bagdale Lodge. Around 40 quid per room but you can get rooms that sleep up to 4. Don't book in at the Hall itself though by mistake - very nice and all that but one of the expensive ones!
Generaly speaking East/Old side, very pretty, rambling, ancient sort of place. West cliff/new side bigger, newer (but still old!), more accomodation, nearer to the main hall (The Spa). It's all near the festival venues but I hope you are fit and used to climbing hills!
There are any number of on-line guides BTW. I use the Whitby On-Line one (can't remember the URL). Use a sercher to get details.
Meet in the Elsinore, Plough, Little Angel or Tap and Spile if I remember rightly. I'm sure you will get loads more details from the Yorkshire 'catters as well - they are a reasonably friendly lot even if from the wrong side of the pennines...;-)
If you are here for a while after the festival try the other coast - Fylde festival at Fleetwood is on during the First weekend in September. Only 4 days but has the advantage of being in Lancashire.... Enjoy yourself anyway.
Cheers and waiting to get singed:-)
Dave the Gnome