Global Hostel Market (by Booking Channel, & Region): Insights and Forecast with Potential Impact of COVID-19 (2022-2027)

Global Hostel Market (by Booking Channel, & Region): Insights and Forecast with Potential Impact of COVID-19 (2022-2027)


Market Insight:

A hostel is a sort of low-cost, short-term shared convivial housing in which visitors can rent a bed, often a bunk bed in a dormitory, as well as shared use of a lounge and, on rare occasions, a kitchen. Hostels provide benefits such as cheaper costs and the ability to meet people from all over the world, find travel partners, and share travel ideas. Some hostels, such as Zostel in India or Hostelling International, cater to a specific demographic of visitors.

Hostel expansion has outpaced hotel growth, owing mostly to the increasing millennial population. Other tailwinds were the rising popularity of third-party booking sites, a boom in the number of foreign travelers, and an increase in the proportion of young and solitary travelers. The global hostel market is predicted to record a value of US$6.04 billion in 2023, growing at a CAGR of 10.15%, during the forecast period.

Segment Covered:
  • By Booking Channel: In terms of booking channel, the report provides the bifurcation of the global hostel market into four different segments: Online Travel Agencies (OTAs), Hostel Websites, Offline Direct and Offline Intermediaries. The Online Travel Agencies (OTAs) segment held the maximum share of the hostel market. Rising millennial population acted as crucial growth driver for the OTA hostel market owing to their tech savvy nature. This segment of the population is a major user of mobiles applications for booking accommodation, utilizing information found on social media platforms, and are influenced by other travelers’ experiences. Therefore, OTA has become a very important channel of booking hostels, especially for millennial.
Geographic Coverage:

According to this report, the global hostel market can be divided into six major regions: Asia, North America, Western Europe, Australia and New Zealand, Latin America, and Rest of the World. The countries covered in Asia region are China, Japan, India, and Rest of Asia, while North America includes the US, Mexico, and Canada. Moreover, Ge Germany, UK, France, and Rest of Western Europe are included in the Western Europe region.

The Western Europe hostel market enjoyed the highest market share, primarily owing to the presence of tourist locations across several European cities. While London continues to be a prominent engine of UK tourism, accounting for a large proportion of total visits, regional United Kingdom markets have grown in popularity with both tourists and investors. Along with that, United Kingdom hostel market is also expected to grow significantly among other countries due to the emergence of hybrid hostels as a significant trend in the hostel industry.

Top Impacting Factors:

Growth Drivers
  • Greater Spending by Millennial
  • Growing Interest for Travel
  • Escalating Popularity of Solo Travel
  • Increasing Role of Online Travel Agencies (OTAs)
Challenges
  • Overcrowding in Hostels
  • Misconceptions About Hostels
Trends
  • Surging Interest in Sustainable Travel
  • Growing Number of Mobile Bookings
  • Rising Demand for Luxury Hostels
  • Introduction of Hybrid Hostels
  • Driver: Escalating Popularity of Solo Travel
The increasing popularity of solo traveling is creating a favorable environment for the growth of the travel industry as well as the hostel market. Solo travelers are experience seekers and majority of them travel to collect memories and experience the local culture, as well as to make social connections. These solo travelers are typically outgoing, curious, and adventurous people who like to meet and connect with new people or like-minded travelers during their tour. Solo travelers mostly prefer hostels with buzzing communal spaces as they are budget-friendly and provide the opportunity to meet other travelers. Owing to the rising preference of solo travelers to book hostels during their trip, the demand for hostels is expected to increase in the coming years.
  • Challenge: Misconceptions About Hostels
A major barrier to the success of hostel market has been the certain misconceptions associated with the hostel. One of the major misconceptions about the hostels is that the hostels are only for young people. Therefore, majority of the older travelers are reluctant to book hostel for their stay. Another misconception is that the hostels are dirty, resulting in the low demand from many guests. There are various other misconceptions, including hostels are only for partying & for solo travelers, have no privacy, and are not considered safe. Infact, people also think that unlike many hotels, hostels do not provide any amenities. Hence, the growing misconceptions about the hostels is regarded as a key factor that restrain the growth of the hostel market.
  • Trend: Rising Demand for Luxury Hostels
One of the major trends that would impact the growth of the hostel market is the rising demand for luxury hostels. The hostel market has undergone a major transformation and now designer hostels with private rooms, vibrant bars, yoga classes and luxurious interior designs are becoming more common. Luxury hostel accommodations offer the perfect balance of privacy, amenities, and social activities. These luxury hostels are characterized by swimming pools, cocktails, art shows, live music, rooftop bars, yoga classes and luxury suites. Luxury hostels also provide excellent service and maintain clean premises. Therefore, the rising demand for luxury hostels is creating a robust development in the overall hostel market.

The COVID-19 Analysis:

During the pandemic, hostel industry witnessed a decline due to the restrictions in travelling all around the world. Many hostel chains were losing money and were forced to close due to the lockdown the integration of technology in hostel apps and online booking channels would open new doors, pave the way for enhancement, and widen the horizons of the hostel business in the next years.

Analysis of Key Players:

The hostel market is fragmented, with the presence of large number of players. Key players of the hostel market are:
  • Hostelworld Group,
  • Hostelling International (HI),
  • Generator Hostels,
  • Safestay plc.
  • A&O Hotels and Hostels,
  • London Backpackers,
  • Wombat’s Hostel,
  • Green Tortoise Hostel
  • Newquay International Backpackers,
  • Maestro Hostel
Hostelworld estimated that close to 9% of hostels had already exited the market since the COVID-19 outbreak. It is expected that further closures could come particularly from the independent segment. Hostel sector is facing a challenging outlook but this would provide the opportunity for Safestay to capitalize on cheap assets and make further strides in consolidating the market.


1. Executive Summary
2. Introduction
2.1 Hostel: An Overview
2.1.1 Benefits of Staying in a Hostel
Table 1: Benefits of Staying in a Hostel
2.2 Hostel Segmentation: An Overview
2.2.1 Hostel Segmentation by Booking Channel
Table 2: Hostel Segmentation by Booking Channel
3. Global Market Analysis
3.1 Global Hostel Market: An Analysis
3.1.1 Global Hostel Market by Value: An Overview
3.1.2 Global Hostel Market by Value
Table 3: Global Hostel Market by Value; 2017-2021 (US$ Billion)
Table 4: Global Hostel Market by Value; 2022-2027 (US$ Billion)
3.1.3 Global Hostel Market by Booking Channel (Online Travel Agencies (OTAs), Hostel Websites, Offline Direct and Offline Intermediaries)
Table 5: Global Hostel Market by Booking Channel; 2021 (Percentage, %)
3.1.4 Global Hostel Market by Region (Western Europe, Asia, Latin America, North America, Australia and New Zealand and Rest of the World)
Table 6: Global Hostel Market by Region; 2021 (Percentage, %)
3.1.5 Global Hostel Market by Volume: An Overview
3.1.6 Global Hostel Market by Volume
Table 7: Global Hostel Market by Volume; 2017-2021 (Thousand)
Table 8: Global Hostel Market by Volume; 2022-2027 (Thousand)
3.2 Global Hostel Market: Booking Channel Analysis
3.2.1 Global Hostel Market by Booking Channel: An Overview
3.2.2 Global Online Travel Agencies (OTAs) Hostel Market by Value
Table 9: Global Online Travel Agencies (OTAs) Hostel Market by Value; 2017-2021 (US$ Billion)
Table 10: Global Online Travel Agencies (OTAs) Hostel Market by Value; 2022-2027 (US$ Billion)
3.2.3 Global Hostel Websites Hostel Market by Value
Table 11: Global Hostel Websites Hostel Market by Value; 2017-2021 (US$ Billion)
Table 12: Global Hostel Websites Hostel Market by Value; 2022-2027 (US$ Billion)
3.2.4 Global Offline Direct Hostel Market by Value
Table 13: Global Offline Direct Hostel Market by Value; 2017-2021 (US$ Billion)
Table 14: Global Offline Direct Hostel Market by Value; 2022-2027 (US$ Million)
3.2.5 Global Offline Intermediaries Hostel Market by Value
Table 15: Global Offline Intermediaries Hostel Market by Value; 2017-2021 (US$ Million)
Table 16: Global Offline Intermediaries Hostel Market by Value; 2022-2027 (US$ Million)
4. Regional Market Analysis
4.1 Western Europe Hostel Market: An Analysis
4.1.1 Western Europe Hostel Market: An Overview
4.1.2 Western Europe Hostel Market by Value
Table 17: Western Europe Hostel Market by Value; 2017-2021 (US$ Billion)
Table 18: Western Europe Hostel Market by Value; 2022-2027 (US$ Billion)
4.1.3 Western Europe Hostel Market by Region (United Kingdom, Germany, France, and Rest of Western Europe)
Table19: Western Europe Hostel Market by Region; 2021 (Percentage, %)
4.1.4 United Kingdom Hostel Market by Value
Table 20: United Kingdom Hostel Market by Value; 2017-2021 (US$ Million)
Table 21: United Kingdom Hostel Market by Value; 2022-2027 (US$ Million)
4.1.5 Germany Hostel Market by Value
Table 22: Germany Hostel Market by Value; 2017-2021 (US$ Million)
Table 23: Germany Hostel Market by Value; 2022-2027 (US$ Million)
4.1.6 France Hostel Market by Value
Table 24: France Hostel Market by Value; 2017-2021 (US$ Million)
Table 25: France Hostel Market by Value; 2022-2027 (US$ Million)
4.1.7 Rest of Western Europe Hostel Market by Value
Table 26: Rest of Western Europe Hostel Market by Value; 2017-2021 (US$ Billion)
Table 27: Rest of Western Europe Hostel Market by Value; 2022-2027 (US$ Billion)
4.2 Asia Hostel Market: An Analysis
4.2.1 Asia Hostel Market: An Overview
4.2.2 Asia Hostel Market by Value
Table 28: Asia Hostel Market by Value; 2017-2021 (US$ Billion)
Table 29: Asia Hostel Market by Value; 2022-2027 (US$ Billion)
4.2.3 Asia Hostel Market by Region (China, Japan, India, and Rest of Asia)
Table 30: Asia Hostel Market by Region; 2021 (Percentage, %)
4.2.4 China Hostel Market by Value
Table 31: China Hostel Market by Value; 2017-2021 (US$ Million)
Table 32: China Hostel Market by Value; 2022-2027 (US$ Million)
4.2.5 Japan Hostel Market by Value
Table 33: Japan Hostel Market by Value; 2017-2021 (US$ Million)
Table 34: Japan Hostel Market by Value; 2022-2027 (US$ Million)
4.2.6 India Hostel Market by Value
Table 35: India Hostel Market by Value; 2017-2021 (US$ Million)
Table 36: India Hostel Market by Value; 2022-2027 (US$ Million)
4.2.7 Rest of Asia Hostel Market by Value
Table 37: Rest of Asia Hostel Market by Value; 2017-2021 (US$ Million)
Table 38: Rest of Asia Hostel Market by Value; 2022-2027 (US$ Million)
4.3 North America Hostel Market: An Analysis
4.3.1 North America Hostel Market: An Overview
4.3.2 North America Hostel Market by Value
Table 39: North America Hostel Market by Value; 2017-2021 (US$ Million)
Table 40: North America Hostel Market by Value; 2022-2027 (US$ Million)
4.3.3 North America Hostel Market by Region (The US, Canada, and Mexico)
Table 41: North America Hostel Market by Region; 2021 (Percentage, %)
4.3.4 The US Hostel Market by Value
Table 42: The US Hostel Market by Value; 2017-2021 (US$ Million)
Table 43: The US Hostel Market by Value; 2022-2027 (US$ Million)
4.3.5 Canada Hostel Market by Value
Table 44: Canada Hostel Market by Value; 2017-2021 (US$ Million)
Table 45: Canada Hostel Market by Value; 2022-2027 (US$ Million)
4.3.6 Mexico Hostel Market by Value
Table 46: Mexico Hostel Market by Value; 2017-2021 (US$ Million)
Table 47: Mexico Hostel Market by Value; 2022-2027 (US$ Million)
4.4 Latin America Hostel Market: An Analysis
4.4.1 Latin America Hostel Market: An Overview
4.4.2 Latin America Hostel Market by Value
Table 48: Latin America Hostel Market by Value; 2017-2021 (US$ Million)
Table 49: Latin America Hostel Market by Value; 2022-2027 (US$ Million)
4.5 Australia and New Zealand Hostel Market: An Analysis
4.5.1 Australia and New Zealand Hostel Market: An Overview
4.5.2 Australia and New Zealand Hostel Market by Value
Table 50: Australia and New Zeeland Hostel Market by Value; 2017-2021 (US$ Million)
Table 51: Australia and New Zeeland Hostel Market by Value; 2022-2027 (US$ Million)
4.6 Rest of the World Hostel Market: An Analysis
4.6.1 Rest of the World Hostel Market: An Overview
4.6.2 Rest of the World Hostel Market by Value
Table 52: Rest of the World Hostel Market by Value; 2017-2021 (US$ Million)
Table 53: Rest of the World Hostel Market by Value; 2022-2027 (US$ Billion)
5. Impact of Covid-19
5.1 Impact of COVID-19 on Global Hostel Market
5.1.1 Change in Global Consumer Behavior and Expectations
5.1.2 Impact on Europe Hostel Market
Table 54: European Markets, % of Closed Hostel Beds; 2020
5.1.3 Post COVID-19
6. Market Dynamics
6.1 Growth Driver
6.1.1 Greater Spending by Millennial
Table 55: Global Annual Aggregate Income by Generation; 2020-2025 (US$ Trillion)
6.1.2 Growing Interest for Travel
Table 56: Global International Tourist Arrivals; 2017-2021 (Million)
6.1.3 Rising Middle Class Population
Table 57: Global Middle Class Population by Region; 2015-2030 (Million)
6.1.4 Increasing Role of Online Travel Agencies (OTAs)
Table 58: Global Online Travel Agencies (OTAs) Market; 2018-2023
(US$ Billion)
6.1.5 Escalating Popularity of Solo Travel
6.1.6 Increasing Investments in the Hostel Industry
6.2 Challenges
6.2.1 Overcrowding in Hostels
6.2.2 Misconceptions about Hostels
6.2.3 Rise of Budget and Midscale Hotels
6.3 Market Trends
6.3.1 Surging Interest in Sustainable Travel
6.3.2 Growing Number of Mobile Bookings
Table 59: Global Mobile App Downloads; 2016-2021 (Billion)
6.3.3 Shift in Consumer Preferences towards Shared Experiences
Table 60: The US Discretionary Expenditure by Category; 2000-2030 (Percentage, %)
6.3.4 Rising Demand for Luxury Hostels
6.3.5 Increasing Importance of Social Interaction for Travelers
6.3.6 Introduction of Hybrid Hostels
7. Competitive Landscape
7.1 Global Hostel Market Players by Total Properties
Table 61: Global Hostel Market Players by Total Properties; 2021 (Percentage, %)
7.2 Global Hostel Market Players by Instagram Followers
Table 62: Global Hostel Market Players by Instagram Followers; 2022 (Thousand)
8. Company Profiles
8.1 Hostelworld Group
8.1.1 Business Overview
8.1.2 Operating Regions
Table 63: Hostelworld Group Revenue by Region; 2021 (Percentage, %)
8.1.3 Business Strategy
8.2 Safestay plc.
8.2.1 Business Overview
8.2.2 Operating Segments
Table 64: Safestay plc. Revenue by Segments; 2020 (Percentage, %)
8.2.3 Business Strategy
8.3 A&O Hotels and Hostels
8.3.1 Business Overview
8.3.2 Business Strategy
8.4 Hostelling International (HI)
8.4.1 Business Overview
8.4.2 Business Strategy
8.5 Generator Hostels
8.5.1 Business Overview
8.6 London Backpackers
8.6.1 Business Overview
8.7 Wombat’s Hostel
8.7.1 Business Overview
8.8 Newquay International Backpackers
8.8.1 Business Overview
8.9 Maestro Hostel
8.9.1 Business Overview
8.10 Green Tortoise Hostel
8.10.1 Business Overview

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