How hostels are remaking the low-cost market place

“Hostel” – the word somehow conjures up cheap and low end accommodation. In the Australia / New Zealand region, and across to Europe the word “Hostel” invokes memories of pre or post undergrad travels – a right of passage amongst the youth travel market before they settle down and become part of the corporate world.

In the US, the word “Hostel” was long time associated with homeless shelters.

Even now, the mature hotel accommodation sector looks at the hostel sector as being down market, a different sector and an entire different operation to managing a traditional hotel. Yet all the same while, large hotel chains are now looking at hostels as a money making operation and evaluating the potential of adding a hostel brand to their list of global assets. A recent article online noted a hotel room revenuing $200 a night with king sized bed could recoup $250 in the same room with 6 bunk beds as a hostel…. and often with a lower cost of room fittings!

As the opening paragraph from the following article, penned by Douglas Quinby – VP of Research at PhocusWright, states:

“For many the term “hostel” brings to mind cheap, dorm-style accommodations catering to budget-conscious backpackers. While low-cost lodging remains central to hostels, this often overlooked segment in travel accommodation has been undergoing some big changes, all to cater to the travel-ambitious, mobile-minded millennial.”

Read on for more….

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