As many have already suggested, I'd simply replace the hose and be done with it.

If you're dead set on repairing it, the best solution would be to eliminate the portion of the tube with the hole. If it is located at either end, simply remove the tube, trim it slightly beyond the hole, reinstall it, and live with a slightly shorter drink tube.

If it is towards the center of the tube, remove a half inch (or so) section containing the hole, and then rejoin the tube with a non-toxic plastic coupling.

Most of the better water purification systems include quick disconnect fittings such as I've described to allow for refilling the bladder directly from the hand pump, so that would be a viable source for the coupling.

If after all of this you're still on the fence regarding complete replacement of the tube, I'd suggest going with the insulated tube with the covered bite valve, and then you'll have the additional benefit of reduced freeze-ups in the winter and cooler water in the summer. This might make it easier for you to justify spending a few bucks.

Jim