Hostels Market Report 2025

The hostels market size has grown strongly in recent years. It will grow from $5.03 billion in 2024 to $5.51 billion in 2025 at a compound annual growth rate (CAGR) of 9.5%. The growth in the historic period can be attributed to strong economic growth in emerging markets, growth in world population, a rise in disposable income, acceptance of solo travel and an increase in paid leaves globally.

The hostels market size is expected to see rapid growth in the next few years. It will grow to $8.35 billion in 2029 at a compound annual growth rate (CAGR) of 11%. The growth in the forecast period can be attributed to millennial travelers, rising spend on leisure, shift in travel trends, the resurgence of staycations, government initiatives, increasing internet penetration and smartphone usage and an increase in budget-conscious travelers. Major trends in the forecast period include focusing on hybrid hostels, focusing on eco-friendly hostel pattern, focusing on yoga hostels providing health benefits, leveraging digital technology in their hotel management systems and adopting artificial intelligence technology for higher engagement.

The increase in solo travel is a significant factor fueling the growth of the hostel market. Solo travelers are choosing hostels due to their affordability, value for money, experience-based accommodations, convenient locations, and opportunities to connect with other travelers. For example, in March 2024, a report by the Association of British Travel Agents (ABTA Ltd), a UK-based trade association, highlighted that the most substantial year-on-year growth occurred in the 35-44 age group, where the number of solo travelers more than doubled, increasing from 6% in 2022 to 13% in 2023. Thus, the rise in solo travel is propelling the growth of the hostel market.

The increasing trend of student migration for education is anticipated to boost the hostel market. Student migration refers to the relocation of individuals, usually young people, from their home countries or regions to foreign countries or different locations within their own country to pursue higher education or academic studies. Hostels benefit from their proximity to educational institutions, affordability, flexibility to meet student needs, and their role in fostering a sense of community among diverse student populations, making them an essential option for students seeking convenient and budget-friendly housing during their academic pursuits. For instance, in September 2024, data from the Parliament of the United Kingdom of Great Britain and Northern Ireland, a UK-based government agency, revealed that in the 2022-23 academic year, there were 758,855 international students enrolled at UK universities, with 95,505 from the EU and 663,355 from outside the EU. This figure marked the tenth consecutive record high, representing 26% of the total student population. Therefore, the increasing student migration for education is driving the growth of the hostel market.

A noteworthy trend in the hostel market is the emergence of hybrid hostels. These hostels are designed to cater to the preferences of young urban professional travelers by blending the affordability and social aspects of dorm accommodation with the upscale amenities offered by traditional hotels. One example is the centrally located Stay Hybrid Hostel in Thessaloniki, situated near the Ladadika and Valaoritou areas. Each room at Stay Hybrid Hostel is air-conditioned and features unique music references. The hostel provides private rooms with individual amenities, bed tables, a small desk, a wardrobe, and a flat-screen TV.

Major players in the hostel market are forming strategic partnerships to provide innovative services that address the changing needs of budget-conscious travelers. Property management software refers to a digital platform or system designed to aid property managers, landlords, and real estate professionals in managing their properties effectively. For example, in September 2024, The Hive Hostels, an India-based company, collaborated with Crib Ltd, another India-based company, to digitize its operations in preparation for an upcoming IPO. This partnership aims to implement Crib's property management software, which will automate and streamline The Hive Hostels' operational workflows, including bookings, payments, and customer management. The Hive Hostels intends to improve its property management efficiency through digitization, which encompasses better resource allocation and improved communication between staff and residents.

In August 2024, Collective Hospitality Ltd., a Singapore-based company, acquired Selina Inc. for an undisclosed sum. This acquisition allows Collective Hospitality to broaden its portfolio by leveraging Selina's expertise in providing accommodations for backpackers. Selina Inc. is a UK-based company that specializes in hostels.

Major companies operating in the hostels market include A&O Hotels and Hostels, Che Lagarto, St Christopher’s Inns, Vietnam Backpacker Hostels, Loki Hostels, goSTOPS, MEININGER Hotels, Bohemian Hostels, Sundance Hostel, Beijing Downtown Travelotel, 11 Youth Hostel, Hostel One, Lijiang Garden Inn, Mad Monkey Hostels, Chengdu Dragon Town Sichuan Style Hostel, The Hosteller, Kunming Cloudland Youth Hostel, Viajero, Grand Pearl Hostel for Boys, New Teddy Hostel, Plus Hostels, Toc Hostel & Suites, Backpacker Panda, Generator Hostels, Hostelling International, Posadas Group, YHA England & Wales, Clink Hostels, Mix, Safestay Plc, Combo Hostels, Vedanta Wake Up, Freehand Hotels, Hostelling International Canada, high garden hostels (Nigeria), Canada Hostels, Wombat’s Hostels, Pakachere Backpackers Lodge, Hotels. Ng, WOKSEN, Wild Rover, Rodamon Hostel, Gaviota, Atlantica, Hop Inn, Green Tortoise Hostel, Moustache, The BIG Backpackers, Dar Surf Hostel, HomeStar - Jumeirah Beach, Nomads, elmenus, Pappi Chulo, International Youth Hostels (YHAI), Azalaï HotelsTented Adventures, The Hostel Crowd.

Asia-Pacific is the largest region in the hostels market in 2024. Asia-Pacific is expected to be the fastest-growing region in the global hostels market during the forecast period. The regions covered in the hostels market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa. The countries covered in the hostels market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Italy, Canada, Spain.

A hostel is a form of budget-friendly shared accommodation with communal areas. Typically offering dorm-style rooms for travelers, modern hostels also provide private rooms and hotel-such as amenities. Hostels aim to create a sociable atmosphere and are generally more affordable compared to hotels.

Hostels come in various types, catering to students, workers, and others. Student hostels are structures provided by educational institutions to accommodate their enrolled students. Booking options include online bookings, direct bookings, and others, with service price points ranging from economy to mid-range and luxury.

The hostel market research report is one of a series of new reports that provides hostel market statistics, including global market size, regional shares, competitors with a hostel market share, detailed hostel market segments, market trends and opportunities, and any further data you may need to thrive in the hostel industry. This hostel market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenario of the industry.

The hostel market consists of revenues earned by entities by providing hostels and related services. Values in this market are factory gate values, that is the value of goods sold by the manufacturers or creators of the goods, whether to other entities (including downstream manufacturers, wholesalers, distributors, and retailers) or directly to end customers. The value of goods in this market includes related services sold by the creators of the goods. 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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