The hostel market size is estimated to be USD 4.6 billion in 2023. The market is projected to reach USD 12.1 billion by 2033, at a CAGR of 10.20% from 2023 to 2033.
Attribute | Details |
---|---|
Estimated Hostel Market Size in 2023 | USD 4.6 billion |
Projected Hostel (2033) Market Size | USD 12.1 billion |
Value CAGR (2023 to 2033) | 10.20% |
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Hostels are considered one of the most inexpensive and convenient places to stay. Traditionally, hostels used to be dorm-style small and budget accommodations with basic amenities commonly known as dormitory hostels. But in the modern era, the new hostels are luxurious, with advanced amenities, and designed in an artistic way to attract youths.
The new age of hostels provides social space, safety features, and many other services. There are possibilities that travelers may find much cheaper stays as alternatives, but the hostel industry is undergoing many changes in the hospitality industry. Hostel developers are introducing many modern technologies to upgrade their infrastructure to suit the current environment and make their service process more convenient.
Rising trends of traveling to exotic places, trekking, hiking, and other outdoor activities have increased opportunities for accommodation providers in the tourism industry. Other than this, with more development in the education and service sectors, people travel to various places for conditional reasons.
As people travel from one place to another, the first and most important thing they search for is an inexpensive accommodation mode. Hence, it can be concluded that the temporary migration of people for conditional purposes or leisure has resulted in the growth of the hostel market. Hostels are comfortable for short-term as well as long-term stays.
Nowadays, hostels provide Wi-Fi, breakfast, transport facilities, privacy, a social area, spacious private rooms, sharing rooms, a lounge, kitchen facilities, and various other facilities along with a basic stay. Meanwhile, social media has its impact, especially on youth. This all results in the growth of the hostel industry.
Many hostel owners have realized that the visual appeal of the hostel is one of the key factors in attracting a huge number of travelers. Therefore, the hostel owners are renovating their traditional infrastructure with new, advanced ones.
The owners are improving the infrastructure and communication to target a massive audience. The hostel owners create attractive websites by using 3D tools or by creating a visual tour on the website displaying the view of the hostel rooms and the experiences of others.
Many hostel owners use multiple strategies, such as building a themed hostel or an eco-friendly hostel, combining both, and making eco-friendly themed hostels. Example. Urban Garden Hostel in Lisbon, Portugal, promotes an extensive recycling program and uses recycled material, energy-efficient light bulbs, other electrical appliances, reusable items, etc.
They promote garden events and conduct various activities related to environmental sustainability. Hence, such activities and initiatives from hostel owners may result in the growth of the hostel market.
There has been a significant rise in solo travelers in the last few years. The increasing growth of solo travelers has resulted in the growth of the hostel market. Solo travelers search for low-value, experienced-based accommodations that offer good value for money, a convenient place, and the opportunity to meet other travelers.
Therefore, travelers opt for hostels. The rise in video bloggers, the increasing trend of digital tourism, dark tourism, eco-tourism, and the increasing participation of people in recreational activities such as hiking, diving, cycling, skiing, etc., are all trends influencing travelers, especially solo travelers, to explore. Hence, the rise in solo travelers has resulted in the growth of the hostel market.
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Rise in Admission for Educational Institutes Boosts the Hostel Market in the United States of America
Every year, millions of students travel to the United States from different parts of the world to qualify for educational institutions and to work in the United States. There are various top and well-known institutes in the United States, such as Princeton University, Harvard University, and Yale University.
They get many applications from international students every year due to their quality of education. Hence, students traveling to the United States mainly opt for hostels for their accommodation. Various institutions provide hostel services as part of their institutions. Hence, we can conclude that student hostels in the United States generate a higher demand for the hostel market.
The Rise in Growth of International Travelers Results in an Increase in Demand for the Hostels
India is a country with a vast culture and diversity. People travel from various parts of the world to study the culture and religion of India. Over the past decade, there has been a continuous rise in international travelers traveling to India, especially from the United States of America and Other parts of Asia. Certain travelers travel to India for medical therapy, such as Ayurveda and other medical surgeries.
As international travelers travel from one place to another, they prefer staying in hostels because they find them affordable. Also, according to them, the hostel environment helps them connect with localities more efficiently. The hostile environment makes them feel connected and allows them to experience the taste of India. Thus, it generates market opportunities in the hostel market.
Group Trips, Student Trips, and Individual Travelers Prefer the Hostel
According to the analysis, in terms of tour type, the hostel is mostly preferred by group trips, student trips, and corporate travelers. The hostel offers sharing facilities called sharing rooms, and group travelers mainly like to accommodate all of them in one room. It is more likely because the hostel rooms are spacious and allot one bed to each member's group trip. Other than this, it is cheaper as compared to booking two different rooms in a hotel.
For corporate travelers and student trips, it is necessary to have a well-connected transport facility and possibly be close to the city to make it convenient for them to travel for work. Hence, most of the hostels are located near a connected public transport station or near the city, corporate hubs, or an educational institute. Other than this, some of the hostels provide complimentary travel services. Therefore, this set of tourists has a high demand for hostels.
Travelers from the Millennial and Young Age Groups Will Increase Significantly in the Hostel Market
In terms of age group, the number of tourists in the age groups of 15 to 25 years and 26 to 35 years is expected to rise significantly. A specific age group enjoys exploring new places and traveling. Other than this, the environment and amenities in the hostel attract millennials and youth. Therefore, the hostel owners try to load their hostels creatively with various other services.
For example, Los Patios, the stylish hostel in Colombia, has themed floors inspired by Colombia's environment, such as mountains, jungles, and the sea. The hostel offers amenities like a co-working space, a gym, rooftop bars, an organic garden, a community kitchen, etc. Each dorm has privacy curtains, and the private rooms are as good and comfortable as hotels. The hostel also offers parties, happy hours, various events, salsa classes, street art tours, and bike rentals.
All these amenities and services attract youths to participate, resulting in high demand for hostels from the above age group.
Online Booking is Generally More Preferred by The Tourist for its Feasibility and Wide Range of Availability of Hostel Rooms.
Online booking is more popular than in-person booking to make reservations. Travelers are drawn to explore the service offerings in depth on hostels modernized websites, such as the variety of facilities, ease of access to other verticals and categories of hostels, and additional services such as offers on tours, trips, and events.
Meanwhile, the other third-party travel and accommodation aggregator applications offer price details, comparisons of services, reviews, etc. Lastly, online bookings offer feasibility, an easy process of selection and transaction, a wide range of payment options, a wide range of selections in one place, and bank offers and discounts that result in more demand for online booking of hostels.
Leading players are operating globally in the market and focusing on expanding their businesses. They are also working on their service and infrastructure to attract new customers.
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Attribute | Details |
---|---|
Forecast Period | 2023 to 2033 |
Historical Data is available for | 2018 to 2022 |
Market Analysis | USD Million for Value |
Key Regions Covered | North America; Latin America; Europe; East Asia; South Asia; Oceania; and MEA |
Key Countries Covered | United States, Canada, Brazil, Mexico, Argentina, Colombia Germany, UK, France, Italy, Russia, South Africa, Turkey, UAE, Egypt, and Jordan China, Japan, South Korea, India, Thailand, Malaysia, Indonesia, the Philippines, Cambodia, Vietnam, Australia, and New Zealand |
Key Segments Covered | Accommodation Type, Booking Channel, Tour Type, Tourist Type, Consumer Orientation, Age Group, and Region |
Key Companies Profiled | eZee Frontdesk; Hostelworld; Safestay plc; Room Master; Hostelling International; Green Tortoise Hostel; London Backpackers; Newquay Backpackers; Canada Hostels; WOKSEN; A&Os and Hostels; Travelers House; Generator Hostels; Wombats City Hostel; Greg and Tom Hostel; La Banda Rooftop Hostel; Ecomama; Alter Hostel; Urban Garden Hostel |
Report Coverage | Market Forecast, Company Share Analysis, Competition Intelligence, DROT Analysis, Market Dynamics and Challenges, and Strategic Growth Initiatives |
Customization and Pricing | Available upon Request |
The United States, India, and Germany are dominate the global market.
The market is forecast to register a CAGR of 10.20% through 2033.
During 2018 to 2022, the market registered a CAGR of 10.20%.
Education development and travel are the current market trends.
The global market size to reach USD 12.1 billion by 2033.
1. Executive Summary 2. Market Overview 3. Market Background 4. Global Analysis 2018 to 2022 and Forecast, 2023 to 2033 5. Global Analysis 2018 to 2022 and Forecast 2023 to 2033, By Accommodation Type 5.1. Private Room 5.2. Twin Sharing 5.3. Family Room 5.4. Suite 5.5. Others 6. Global Analysis 2018 to 2022 and Forecast 2023 to 2033, By Booking Channel 6.1. Online 6.2. In Person 7. Global Analysis 2018 to 2022 and Forecast 2023 to 2033, By Tourist Type 7.1. Domestic 7.2. International 8. Global Analysis 2018 to 2022 and Forecast 2023 to 2033, By Tour Type 8.1. Independent Traveler 8.2. Group Trip 8.3. Family Trip 8.4. Student Trip 8.5. Corporate Traveller 9. Global Analysis 2018 to 2022 and Forecast 2023 to 2033, By Consumer Orientation 9.1. Men 9.2. Women 9.3. Children 10. Global Analysis 2018 to 2022 and Forecast 2023 to 2033, By Age Group 10.1. 15-25 Years 10.2. 26-35 Years 10.3. 36-45 Years 10.4. 46-55 Years 11. Global Analysis 2018 to 2022 and Forecast 2023 to 2033, By Region 11.1. North America 11.2. Latin America 11.3. Western Europe 11.4. Eastern Europe 11.5. South Asia and Pacific 11.6. East Asia 11.7. Middle East and Africa 12. North America Analysis 2018 to 2022 and Forecast 2023 to 2033, By Country 13. Latin America Analysis 2018 to 2022 and Forecast 2023 to 2033, By Country 14. Western Europe Analysis 2018 to 2022 and Forecast 2023 to 2033, By Country 15. Eastern Europe Analysis 2018 to 2022 and Forecast 2023 to 2033, By Country 16. South Asia and Pacific Analysis 2018 to 2022 and Forecast 2023 to 2033, By Country 17. East Asia Analysis 2018 to 2022 and Forecast 2023 to 2033, By Country 18. Middle East and Africa Analysis 2018 to 2022 and Forecast 2023 to 2033, By Country 19. Key Countries Analysis 20. Market Structure Analysis 21. Competition Analysis 21.1. eZee Frontdesk 21.2. Hostelworld 21.3. Safestay plc 21.4. Room Master 21.5. Hostelling International 21.6. Green Tortoise Hostel 21.7. London Backpackers 21.8. Newquay Backpackers 21.9. Canada Hostels 21.10. WOKSEN 21.11. A&O s and Hostels 21.12. Travellers House 21.13. Generator Hostels 21.14. Wombats City Hostel 21.15. Greg and Tom Hostel 21.16. La Banda Rooftop Hostel 21.17. Ecomama 21.18. Alter Hostel 21.19. Urban Garden Hostel 22. Assumptions & Acronyms Used 23. Research Methodology
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