I'm surprised with all the negative reviews of Ban's. My experience with Bans was similar to all my other experiences in the south of Thailand. The people there are tired of tourists and they are rude and disinterested. Ban's is no exception - and no worse than anywhere else I stayed. While at Ban's, I stayed in a budget room that was clean and acceptable for the price (1/2 off since I was in the diving school). I think the more expensive rooms are closer to the beach and bar and, therefore, are more noisy!
In my experience the hotel staff was acceptable, but certainly not accommodating. The real problem I had was at the restaurant. It was totally unacceptable!!!! The food was marginal and you honestly had to beg to get a menu or to get anyone to help you. If you managed to order, it might take 5 minutes to get your food, or it might take 1 hour. I quit eating there after my second day -- but found several of the competing restaurants to be almost as bad.
Having said all that, my experience with the dive school was very good. I had the best instructor imaginable - his name was Ronan and he was Israeli. He was fantastic!! My dives were not overcrowded and Ronan did a very good job of maximizing our time in the water and our experience while underwater.
Koh Tao, generally, is very popular as a European backpacker destination. It has cheap accommodations, very cheap diving schools and lots of drinking and having fun. If that's not what you are into, I would strongly recommend trying someplace else. I'm only 36 yrs old and I felt like an old man there :-) Of course, if you have any aversion to thousands of <25 backpacker-types, I would avoid Thailand all-together!!









