Global Hostel Market to Reach $8.89 Billion by 2027
A hostel is a type of low-cost, short-term shared convivial lodging in which guests can rent a bed, usually a bunk bed in a dormitory, as well as shared use of a lounge and, occasionally, a kitchen.
Hostels provide advantages such as lower expenses and the opportunity to meet people from all over the world, find travel partners, and share travel ideas.
Some hostels, like Zostel in India or Hostelling International, cater to a certain group of tourists. In 2021, the global hostel market, was valued at US$4.98 billion, and is probable to reach US$8.89 billion by 2027. The global hostel market volume has reached 23.44 thousand in 2021, and is projected to augment to 37.51 thousand in 2027.
The growth of hostels was outpacing the growth of hotels, primarily driven by the rising millennial population. Other tailwinds were trend towards third party booking platforms, increasing number of international travelers, and the growing youth and solo travelers. The hostel market is projected to grow at a CAGR of 10.12%, during the forecast period of 2022-2027.
Market Segmentation Analysis:
- By Booking Channel: The report splits the global hostel market into four different booking channel: Online Travel Agencies (OTAs), Hostel Websites, Offline Direct and Offline Intermediaries. The Online Travel Agencies (OTAs) segment held more than 50% of the share of the hostel market in 2021. Rising millennial population acted as crucial growth driver for the OTA hostel market owing to their tech savvy nature. This segment of the population is a major user of mobiles applications for booking accommodation, utilizing information found on social media platforms, and are influenced by other travelers' experiences. Therefore, OTA has become a very important channel of booking hostels, especially for millennial.
- By Region: According to this report, the global hostel market can be divided into six major regions: Asia (China, Japan, India, and Rest of Asia), North America (The US, Mexico, and Canada), Western Europe (Germany, UK, France, and Rest of Western Europe), Australia and New Zealand, Latin America and Rest of the World. The Western Europe hostel market enjoyed the market share of 34% in 2021, primarily owing to the presence of tourist locations across a number of European cities.
- While London continues to be a prominent engine of UK tourism, accounting for a large proportion of total visits, regional United Kingdom markets have grown in popularity with both tourists and investors. Along with that, United Kingdom hostel market is also expected to grow significantly among other countries due to the emergence of hybrid hostels as a significant trend in the hostel industry.