Hostels Market

Hostels Market Size (2024-2029):

The Global Hostels Market was worth USD 4.73 billion in 2023 and is projected to reach a valuation of USD 8.94 billion by 2029, and is predicted to register a CAGR of 11.20% during the forecast period 2024-2029.

Market Overview:

Market Drivers:

Growth is primarily driven by resuming business and adapting to the new normal while recovering from the impact of COVID-19, which previously led to restrictive containment measures involving social distancing, remote work, and business closures which resulted in operational challenges. Increasing spending by millennials (ages 18-35) on travel is a key factor in the growth of the hostel market. Due to low cost, value for money, experience-based accommodation, convenient locations, and opportunities to meet millennials, other travelers opt for hostels. More than 70% of hostel travelers are millennials, 15% of whom have spent the last 12 months in a hostel. In the United States, 85% of travelers to millennial hostels have taken a trip abroad in the past 12 months, compared to just 33% of all leisure travelers in the US. The hostel industry has seen strong growth driven by millennial travelers (ages 18-35) looking to spend more money on longer trips and see the world as much as possible. Online channels are the main growth engine in the hospitality Market.

Market Restraints:

Leaving behind their old notion that they previously only provided bunk beds, hostels today offer private rooms with lively cocktail bars, yoga classes, and luxurious interiors. Popular misconceptions are the biggest limiting factor in the youth hostel market. There are many misconceptions about hostels around the world that often lead people to create a negative opinion of them. In general, people assume that shelters are only for young people, and some feel that the shelters are not hygienic or unsafe. Also, people who had a bad experience in a shelter generalized the notion to all shelters and refrained from using them. Such misconceptions limit the growth of the youth hostel market. However, inadequate awareness and misconceptions are the main obstacles likely to hamper the growth of the hostel market.

HOSTELS MARKET REPORT COVERAGE:

Market Segmentation:

Hostels Market – By Implementation:

• cloud
• on-premises
• hybrid

Hostels Market – By Solution:

• youth hostel member management
• bill management
• canteen management
• room management
• daily activity report
• production reporting
• channel manager

Hostels Market – By Company Size:

• small and medium-sized companies
• and large companies.

Market Regional Analysis:

• North America
• Europe
• Asia Pacific
• Latin America
• Middle East & Africa

The North American hostel market is expected to grow at a substantial rate during the forecast period. This is due to the strong adoption of the hostel due to its features such as powerful and efficient management of student accommodation, automated hostel attendance records, and multi-site user support. Asia-Pacific is expected to be a lucrative region of the hostel market during the outlook period. The adoption of hostels in the region is likely to be high as the software is easy to use and efficient and offers many useful features. The software offers innovative solutions for hostel, school, dorm, and university businesses.

Impact of COVID-19 on the Hostels Market:

The recent coronavirus (COVID-19) sparked global concern in early January 2020, and by the end of March 2020, the pandemic had infected several people around the world (WHO, 2020). The severity of the pandemic can be assessed based on the number of past events, such as SARS, the Spanish flu, etc. Tourism and hospitality companies are deeply affected by COVID-19, which was declared a pandemic on March 12, 2020 (WHO, 2020). Due to the pandemic, job losses in the travel and tourism industry are expected to be 100.08 million worldwide (Statista, 2020). The pandemic has affected them not only economically but also politically and socially (Cohen, 2012).

As the number of infected cases increases throughout the country and with the implementation of certain measures and campaigns such as social distancing, community closures, working from home, staying at home, automatic or mandatory quarantine, reduction of overcrowding, etc., pressure is created to close the tourism industry/business (Gretzel et al., 2020; Sigala, 2020). This change in the current system caused the onset of recession and depression, seeking a transformative change in society. According to a report, the fastest-growing sector in the tourism industry benefits many other sectors such as accommodation, catering, transport, retail, entertainment, etc., contributing to economic growth and global recovery.

Market Key Players:

Significant players in the Hostels Market include

1. eZee Frontdesk
2. Hostelworld
3. Safestay plc
4. RoomMaster
5. Rezlynx PMS
6. Frontdesk Anywhere
7. MSI CloudPM
8. Maestro PMS
9. Hotelogix PMS
10. OPERA Property Management System (PMS)
11. A&O Hotels and Hostels
12. Cloudbeds
13. WOKSEN
14. Canada Hostels
15. Newquay Backpackers
16. London Backpackers
17. Green Tortoise Hostel
18. Hostelling International

Market Recent Developments:

• A unit of Goldman Sachs has purchased student accommodation at a private university in northern India for an enterprise value of ₹ 900 crores (about $ 120 million), two people familiar with the development said. Good Host Spaces, a majority-owned student accommodation company from Goldman Sachs, recently took over the Sonipat-based OP Jindal Global University (JGU) hostel's land and facilities in Haryana.
• The Bhopal District Administration acquired the shelter from the Maulana Azad National Institute of Technology (MANIT) to transform it into a quarantine centre. After the acquisition, the administration began the process of evicting the shelters. Arrangements are being made for the stay of several people due to COVID-19 cases in the area. However, MANIT students and faculty opposed the move, saying it would affect internships on campus.
• The European hostel chain Clink Hostels recently purchased the successful Ecomama and Cocomama boutique concept hostels located in the heart of the city of Amsterdam. Clink is excited about this opportunity given his innovative approach to hostels and the similarities to Clink's Vision: wanting to make a difference by igniting the imaginations of those who love to travel and participate in new experiences.