Youth Hostel Market Report 2026

The youth hostel market size has grown strongly in recent years. It will grow from $4.59 billion in 2025 to $4.95 billion in 2026 at a compound annual growth rate (CAGR) of 8.1%. The growth in the historic period can be attributed to growth of backpacker tourism, affordability-driven travel, youth travel culture, expansion of budget tourism, international student mobility.

The youth hostel market size is expected to see strong growth in the next few years. It will grow to $6.72 billion in 2030 at a compound annual growth rate (CAGR) of 7.9%. The growth in the forecast period can be attributed to rise of solo travel among youth, smart hostel automation, sustainability-focused accommodation demand, experiential travel trends, long-stay hostel formats. Major trends in the forecast period include social experience-oriented hostels, digital booking and self check-in, eco-friendly budget accommodation, community and cultural exchange focus, hybrid hostel co-living models.

The increasing popularity of experiential tourism is expected to accelerate the growth of the youth hostel market in the coming years. Experiential tourism emphasizes immersive and interactive travel experiences that allow visitors to actively engage with local cultures, activities, and surroundings. Its rising appeal is driven by factors such as growing demand for authentic and personalized travel, a preference for deeper cultural connections, and the influence of social media in highlighting distinctive and engaging experiences. Experiential tourism utilizes youth hostels as affordable, immersive accommodation options that support cultural exploration and adventure-based travel. For example, in May 2023, according to the United Nations World Tourism Organization (UNWTO), a Spain-based United Nations agency, international tourist arrivals reached 80% of pre-pandemic levels in the first quarter of 2023, with 235 million tourists traveling globally, more than double the figure recorded during the same period in 2022. Therefore, the growing popularity of experiential tourism is driving the expansion of the youth hostel market.

Major companies operating in the youth hostel market are increasingly adopting strategic partnership approaches to develop innovative hostel concepts. Strategic partnerships enable youth hostel operators to pool resources and expertise, enhance service offerings, broaden their guest base, and improve operational efficiency, thereby fostering innovation and market growth. For instance, in October 2024, Bounce, a US-based luggage storage company, partnered with REAJ, a Spain-based international hostel organization. This collaboration aims to provide Youth Hostel Card holders with a 10% discount on Bounce’s luggage storage services worldwide, improving travel convenience. The partnership also seeks to enhance the value of services offered by both Bounce and REAJ Hostelling International Spain to their respective members.

In May 2025, Brookfield Asset Management Inc., a Canada-based alternative asset manager, acquired the European portfolio of Generator Hostels Limited for approximately $902 million (€776 million). Through this acquisition, Brookfield Asset Management Inc. intends to strengthen its presence in the hybrid hospitality and budget lifestyle accommodation segment across major European markets, expanding its strategic footprint and capitalizing on rising demand for flexible and affordable lodging solutions. Generator Hostels Limited is a UK-based hospitality company that operates a network of hybrid hostel and hotel properties, offering a mix of shared and private rooms alongside social communal spaces in key European cities.

Major companies operating in the youth hostel market are Hostelworld Group plc, MEININGER Hotels Ltd., Safestay Hostels & Hotels, Urbany Hostels, Generator Hostels LTD., Hostel One, Wombat's City Hostel, Hostelling International, St Christopher's Inns Limited, Freehand Hotel Solutions Ltd, Urban Garden Hostel, The People, Green Tortoise Hostel, K's House Kyoto, Itaca Hostel, City Backpackers Ltd, Eastseven GmbH, Alter Hostel, The London Backpackers Ltd, Clink Hostels.

Europe was the largest region in the youth hostel market in 2025. The regions covered in the youth hostel market report are Asia-Pacific, South East Asia, Western Europe, Eastern Europe, North America, South America, Middle East, Africa. The countries covered in the youth hostel market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Taiwan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

The youth hostel market includes revenues earned by entities by providing services such as laundry services, accommodation, event hosting, guided tours, and tour and activity services. The market value includes the value of related goods sold by the service provider or included within the service offering. Only goods and services traded between entities or sold to end consumers are included.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD unless otherwise specified).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.

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