As per newly released data by Future Market Insights (FMI), the poshtels market is estimated at USD 200.0 million in 2023 and is projected to reach USD 358.17 million by 2033, at a CAGR of 6.0% from 2023 to 2033.
The poshtels market is experiencing a positive outlook as a growing trend in the hospitality industry. The poshtels offer a unique and affordable option for travelers seeking a stylish and social experience by combining the concepts of posh accommodations and hostels. These properties typically feature well-designed communal spaces, trendy decor, and amenities like free Wi-Fi, shared kitchens, and organized activities.
Posts that focus on creating a vibrant and inclusive atmosphere attract a diverse clientele, including budget-conscious backpackers, solo travelers, and young professionals seeking a more interactive travel experience. The rise of digital platforms and online booking systems has made it easier for poshtels to reach a wider audience and gain popularity. The surge in eco-consciousness and sustainability practices has contributed to the appeal of poshtels among environmentally-conscious travelers.
As a result, the poshtels market may continue its growth trajectory in the coming years, presenting opportunities for entrepreneurs and travelers seeking affordable yet stylish accommodations.
Poshtels Industry (From 2023 to 2033):
| Attribute | Details |
|---|---|
| Market CAGR (From 2023 to 2033) | 6% |
| Market Size - 2023 | USD 200.0 million |
| Market Size - 2033 | USD 358.17 million |
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From 2018 to 2022, the poshtels market experienced significant growth and emerged as a popular alternative in the hospitality industry. The concept gained traction among budget-conscious travelers seeking a unique and social experience. During this period, the poshtels market witnessed an increase in poshtel establishments, along with improved amenities and services to cater to the demands of guests.
From 2023 to 2033, the poshtels market is expected to continue its upward trajectory. With the growing popularity of experiential travel and the rise in digital platforms facilitating easy access to accommodations, poshtels are likely to attract an even larger customer base.
As sustainability and eco-tourism become increasingly important to travelers, poshtels' focus on creating an environmentally conscious and socially interactive environment positions them well for continued growth in the coming decade.
In the last few years, there has been a vast increase in travelers across the globe. People travel for various reasons work purposes, study purposes, outdoor and recreational activities, or leisure and fun.
The rising trends in eco-tourism, ethno-tourism, cultural tourism, activities such as hiking, trekking, and bike riding, and the attractive offers of tour packages and trips from tour aggregator is giving rise to the new age of tourism. With advancements in science and technology, the service sector, and the education industry, people travel to various regions. The effect has led to a rise in temporary migration.
Travelers search for affordable yet good places for accommodation. Due to budget constraints, millennials and various other travelers find hotels expensive. Hence with reasonable prices, amenities, better design layout of rooms, washroom facilities, and friendly hostel-type environment provided by poshtels, the traveler plan to opt for poshtels.
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The poshtels are making additional efforts to stay competitive in the poshtels industry. Besides offering amenities, modern infrastructure, and comfort, poshtel is trying to provide other services at poshtels.
For example, the Hollander and the Freehand in Chicago featured a new range of verticals from bike shops to bars. In contrast, Hollander allows guest to share their Instagram handles while booking so that they can connect with roommates ahead of their visit. The additional attributes from the poshtel encourage new travelers to visit poshtels.
The Rise in Events and Activities Boosts the Poshtel Industry in the United Kingdom.
Every year a million tourist visit various parts of the United Kingdom. The United Kingdom is known for its artistic and heritage culture, renowned museums, and popular locations such as London, Edinburgh, Manchester, and others.
Other than this, it is known for festivals, carnivals, and sports events. Therefore, it attracts huge travelers across the globe. With many travelers traveling United Kingdom, there are several opportunities for poshtel business. Every poshtel offers unique features such as signature food, service, ambiance, city view, environment, etc. This attracts travelers to check in poshtels more than hotels.
The Modern-day Flash Packer Prefers Poshtel for Its Connectivity with Main City
Malaysia is known for its tourism. Tourism is one of the leading sectors in Malaysia; therefore, the hospitality sector in Malaysia gets an opportunity to serve many travelers. According to Malaysia Tourism, around 26.10 million travelers traveled to Malaysia.
Flashpackers or clever backpackers usually like staying within the main cities to save time and money. As most poshtels are in the center of main cities, flash packers opt for poshtels. The paper plane hostel, a poshtel in Kuala Lumpur, is famous among flash packers and budget seekers. It has a characterful, hip, modern design, interiors with artistic painting, a wide range of rooms, a rooftop garden, and a glasshouse lobby filled with plants and sunlight.
The pleasant full appearance attracts travelers to this place. There are various other themed-based poshtels in the parts are Malaysia, and poshtels in George Town, Penang, and Kota Kinabalu are booming.
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Group Trips and Individual Travelers Prefer the Poshtels
According to the analysis, in terms of tour type, the poshtels are mostly preferred by group trips and individual travelers. The poshtels are often located in the main city area or to nearby public transport. If not, most poshtels offer parking or shuttle service to nearby railway stations or airports.
Traveling to and from poshtel to different places becomes convenient. It is the most helpful feature for travelers, especially individual travelers. For group trips, they like privacy, affordability, upgrades, and food service all in one place, and it is convenient for travelers to stay in poshtels.
Tourists from Millennial Age and Young Age Group May Increase Significantly
In terms of age group, tourists of 15 to 25 years and 26 to 35 years are to rise significantly. A certain age group loves to travel and explore new places. The other two main reasons are they get easily connected with the same age group and different they are tech-savvy. The communal area in the poshtels allows travelers to come together and make new connections.
Various poshtels organize events in the communal areas for their tourist. Besides the amenities offered, the onsite restaurants, dance clubs, and pools attract the young generation to opt for poshtels. Also, the attractive discount for students and young age attract this age group towards poshtels.
For example, The One 80 Hostels in Berlin is an urban-inspired property with modernist furniture, free Wi-Fi, comfortable beds, and other amenities. The poshtel has a basement nightclub with a photo booth in the lobby for fun shots. They offer many free tours to learn about the city's culture, history, and beauty.
Online Booking is Generally More Preferred by The Tourist for Offers and Convenience
Regarding booking channels, the online booking channel is more preferred than in-person booking. The upgraded websites of poshtels attract travelers to browse through the service offering in detail with many amenities and accessibility to other verticals. A few poshtels also provide information about the additional events and tours.
Meanwhile, the other third-party booking applications provide information on price comparison, vacancy availability, and online reviews about the poshtels. Lastly, the online portals offer varieties of offers on various modes of payment. More travelers prefer online booking channels to offline booking.
The rivalry has grown increasingly intense as more businesses enter the poshtels market to satisfy the expanding need for distinctive and reasonably priced lodging. Poshtels have a unique offering compared to conventional hotels and hostels, but the industry needs to be more congested.
Poshtels are popular. Thus established hotel chains and boutique hotels have begun to enter this sector, bringing their name recognition and financial resources. A dynamic and competitive environment is being created by introducing new poshtel models by local business owners and independent operators.
Poshtels must distinguish themselves with unique design, amazing guest experiences, and value-added services to stand out and prosper in this competitive industry.
This entails emphasizing current aesthetics, encouraging a lively social scene, and offering a variety of amenities that correspond to their target market's wants and tastes.
Effective marketing and branding techniques are crucial to gain awareness and drawing clients in a crowded market. Poshtels can get a competitive edge by having a strong online presence, using social media, and partnering with travel influencers.
New Breakthroughs and Developments
| Company | Details |
|---|---|
| Generator Hostels Ltd | In 2018, Generator Hostels Ltd. unveiled its inaugural poshtels in the vibrant city of Miami, Florida. |
| Queensgate Investment | The Generator and Queensgate Investment are partners; in 2019, Generator Hostels redesigned staygenerator.com with new functionality. |
The poshtels market CAGR for 2033 is 6%.
The market is valued at US$ 200.0 million in 2023.
The projected market value of the market for 2033 is US$ 358.17 million.
Key players are developing the market by offering stylish accommodation at an affordable price.
The key market players are Cult, Generator Hostels, and The Hoxton.
1. Executive Summary 2. Market Overview 3. Market Background 4. Global Market Analysis 2018 to 2022 and Forecast, 2023 to 2033 5. Global Market 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 Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Booking Channel 6.1. Online Booking 6.2. In-Person Booking 7. Global Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Tourist Type 7.1. Domestic 7.2. International 8. Global Market 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 Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Consumer Orientation 9.1. Men 9.2. Women 9.3. Children 10. Global Market 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 10.5. 56-65 Years 10.6. 66-75 Years 11. Global Market 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 Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Country 13. Latin America Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Country 14. Western Europe Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Country 15. Eastern Europe Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Country 16. South Asia and Pacific Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Country 17. East Asia Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Country 18. Middle East and Africa Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Country 19. Key Countries Market Analysis 20. Market Structure Analysis 21. Competition Analysis 21.1. Generator Hostel 21.2. NY Loft Hostel 21.3. Space Hostel 21.4. Maverick Hostel and Maverick City Lodge 21.5. Casa Gracia Barcelona Hostel 21.6. U Hostels 21.7. Tattva Design Hostel 21.8. Bandai Poshtel 21.9. Charpoi 21.10. Siri Poshtel 21.11. Freehand 21.12. St Christopher’s Inn 21.13. Poshtel Oamaru 21.14. Lets Bunk 21.15. 33 Poshtel 21.16. King Kong Hostel 21.17. The Circus Berlin Mitte 21.18. Celica in Ljubljana 21.19. Ecomama 21.20. Ostello Bello Grande 22. Assumptions & Acronyms Used 23. Research Methodology
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