atm we have a sofa bed in the lounge room. our family are interstate and international so can get cramped if they stay for longer periods of time. although now that DD is older my mum is now able to sleep in DDs bedroom and DD sleeps on a trundle on the floor. it of course would be nicer for guests to have their own room, but you can make it work easily enough and doesnt (well in our experience) deter them from visiting lol! although when my grandparents used to visit we would give them our room and bed and we would sleep on the sofa bed...
another option is to buy one of those wizz bang air beds that i saw for sale at a furniture store. surely they are cheaper than a sofa bed and can be packed away in a cupboard...
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