The global hostels market was worth USD 4.73 billion in 2023. The global market size for hostels is expected to register a CAGR of 11.2% from 2024 to 2029 and be worth USD 8.94 billion by 2029.
The word "hostel" evokes the style of a one-bedroom, a small and inexpensive accommodation for people who want to adapt to a cheap stay. Hostels today include private rooms and all the hotel-like amenities. Travelers will indeed find accommodation elsewhere at cheaper prices, but this travel segment is also undergoing major changes to form its niche in the hotel industry and now meets the needs of travel enthusiasts around the world, replacing the dormitory hostel image of the past.
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.
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.
REPORT METRIC |
DETAILS |
Market Size Available |
2023 to 2029 |
Base Year |
2023 |
Forecast Period |
2024 to 2029 |
CAGR |
11.2% |
Segments Covered |
By Implementation, By Solution, By Company Size, By Region |
Various Analyses Covered |
Global, Regional & Country Level Analysis, Segment-Level Analysis, DROC, PESTLE Analysis, Porter’s Five Forces Analysis, Competitive Landscape, Analyst Overview of Investment Opportunities |
Regions Covered |
North America, Europe, APAC, Latin America, Middle East & Africa |
Market Leaders Profiled |
eZee Frontdesk, Hostelworld, Safestay plc, RoomMaster, Rezlynx PMS, Frontdesk Anywhere, MSI CloudPM, Maestro PMS, Hotelogix PMS, OPERA Property Management System (PMS), A&O Hotels and Hostels, Cloudbeds, WOKSEN, Canada Hostels, Newquay Backpackers, London Backpackers, Green Tortoise Hostel, and Hostelling International, and Others. |
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.
Companies playing a noteworthy role in the global hostels market include eZee Frontdesk, Hostelworld, Safestay PLC, RoomMaster, Rezlynx PMS, Frontdesk Anywhere, MSI CloudPM, Maestro PMS, Hotelogix PMS, OPERA Property Management System (PMS), A&O Hotels and Hostels, Cloudbeds, WOKSEN, Canada Hostels, Newquay Backpackers, London Backpackers, Green Tortoise Hostel and Hostelling International.
By Implementation
By Solution
By Company Size
By Region
Frequently Asked Questions
The Global Hostels Market is expected to grow with a CAGR of 11.20% between 2024-2029.
The Global Hostels Market size is expected to reach a revised size of US$ 8.94 billion by 2029.
Hostelworld, Safestay plc, and RoomMaster are the three Hostels Market key players.
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