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Report Overview
The global hostel market size reached around USD 4.80 Billion in 2023. The market is projected to grow at a CAGR of 10.80% between 2024 and 2032 to reach nearly USD 12.08 Billion by 2032.
2023
Base Year
2018-2023
Historical Year
2024-2032
Forecast Year
- 1 in 5 travellers prefer booking hostels providing free social experiences.
- Nearly 49% travellers prefer cultural experiences over nightlife events (17%), which is expected to favour the hostel market dynamics.
- As per industry reports, 92% hostellers across the US, Australia, and the UK regard themselves as green travellers.
Global Hostel Market Growth
In 2023, the global occupancy index for hostels reached 110, recording a significant growth from year-on-year growth from 104 in 2022. The steady increase in the demand for dormitory rooms and private accommodation has led to an increase in the hostel market value. In 2023, the average daily rate (ADR) index of hostels increased by 27% from 2019 levels, reaching 127. Globally, hostels’ RevPAR (revenue per available room) index reached 117, and RevPAB (revenue per available bed) index reached 125, which indicated the rising appeal for shared spaces among travellers. This is favouring the establishment of family room accommodations across budget-friendly travel destinations, such as Laos and Mexico.
As per the market report, online travel agencies have dominated the hostel booking landscape. In 2020, they accounted for around 60% of all hostel bookings worldwide. This number surged to 70% in 2023, with direct channels accounting for just 30% of all bookings generated. Online travel agencies account for most of the hostel bookings in Europe (73%), followed by the Asia Pacific (64%), and Latin America (56%). This is prompting small travel agencies to create mobile-friendly websites with SEO-based content to attract more travellers towards them, which is expected to contribute to growth of the hostel market over the forecast period.
Compound Annual Growth Rate
Value in USD Billion
10.8%
2024-2032
Hostel Market Outlook
*this image is indicative*
Key Trends and Developments
Increase in travel rates; rise of collaborative consumption; technological advancements; and increase in demand for sustainable offerings are factors favouring the hostel market growth.
Increase in travel rates
Though the demand for hostels has traditionally remained the strongest in Europe; Hostelworld, a leading global travel agency reported a substantial surge in bookings for Egypt (+106%), Guatemala (87%), Turkey (67%), and Mexico (55%). The increasing shift towards solo travel is also expected to positively impact the hostel market outlook over the forecast period.
Rise of collaborative consumption
By enabling users to share resources and establish personal connections, the sharing economy has led to the emergence of a culture of collaborative consumption. This has led to an increased demand for shared accommodation spaces, including hostels.
Technological advancements
As per hostel market analysis, online booking platforms have revolutionised the experience of accommodation booking by accepting digital payments and confirming online room bookings, thereby ensuring a hassle-free travel experience.
Increasing interest in sustainable offerings
This trend can be attributed to increasing environmental consciousness among consumers, which is prompting major companies to establish climate-neutral hostels.
Global Hostel Market Trends
The Hostels World Group suggests that 65% of hostelers across the United States, the United Kingdom, and Australia, prefer staying in eco-friendly accommodation spaces. As per the market analysis, alternative accommodation spaces such as hostels emit 75% less carbon dioxide emissions, which has increased their appeal among the youth travellers and millennials. This is expected to drive the hostel market expansion over the forecast period.
Global Hostel Industry Segmentation
The EMR’s report titled “Global Hostel Market Report and Forecast 2024-2032” offers a detailed analysis of the market based on the following segments:
Breakup by Accommodation
- Private Room
- Sharing Room
- Family Room
- Others
Breakup by Booking Channel
- Online Booking
- In-person Booking
Breakup by Tourist
- Domestic
- International
Breakup by Consumer Orientation
- Men
- Women
- Children
Breakup by Region
- North America
- Europe
- Asia Pacific
- Latin America
- Middle East and Africa
Global Hostel Market Share
Based on region, the market is segmented into North America, Europe, the Asia Pacific, Latin America, and the Middle East and Africa. Over the forecast period, the Asia Pacific is expected to grow at a CAGR of 12.1% due to the increasing tourist footfall in the region. As per the market analysis, a major hotel booking platform of India reported a 24% increase in the demand for alternative accommodation options such as hostels. The demand for apartments/hostels under INR 2,500 has also surged significantly, leading to further market expansion.
Leading Companies in the Global Hostel Market
Major players are expanding their range of premium accommodation options while ensuring cost-effectiveness of existing offerings to capture a greater hostel market share.
London Backpackers
London Backpackers was founded in 2004 and is headquartered in London, United Kingdom. It provides large/small booking accommodations for tourists and students wishing to explore London.
The Green Tortoise
The Green Tortoise was founded in 1974 and is headquartered in California, United States. It provides adventur...
WOMBATS Holding GmbH
WOMBATS Holding GmbH was founded in 1999 and is headquartered in Vienna, Austria. It is a hospitality company ...
Generator Hostels ltd.
Generator Hostels ltd. was founded in 1995 and is headquartered in London, United Kingdom. It offers a range o...
*Please note that this is only a partial list; the complete list of key players is available in the full report. Additionally, the list of key players can be customized to better suit your needs.*
Other players included in the hostel market report are Hostelling Internationa, Safestay PLC, goSTOPS Hospitality Pvt. Ltd., a&o hostels Marketing GmbH, GRUPO VAN BARON Y BUSH SL, Onefam Hostels, among others.
*While we strive to always give you current and accurate information, the numbers depicted on the website are indicative and may differ from the actual numbers in the main report. At Expert Market Research, we aim to bring you the latest insights and trends in the market. Using our analyses and forecasts, stakeholders can understand the market dynamics, navigate challenges, and capitalize on opportunities to make data-driven strategic decisions.*
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Key Questions Answered in the Report
In 2023, the market reached an approximate value of USD 4.80 Billion.
The market is projected to grow at a CAGR of 10.80% between 2024 and 2032.
The different regions considered in the hostel market report are North America, Europe, the Asia Pacific, Latin America, and the Middle East and Africa.
The different booking channels for hostels are in-person and online booking.
The different segments considered in the market are men, women, and children.
Domestic and international tourists both require hostels.
Key players in the market are Hostelling International, London Backpackers, Safestay PLC, goSTOPS Hospitality Pvt. Ltd., The Green Tortoise, Generator Hostels ltd., a&o hostels Marketing GmbH, WOMBATS Holding GmbH, GRUPO VAN BARON Y BUSH SL, and Onefam Hostels, among others.
The market is estimated to witness healthy growth in the forecast period of 2024-2032 to reach a value of around USD 12.08 Billion by 2032.
Report Summary
Explore our key highlights of the report and gain a concise overview of key findings, trends, and actionable insights that will empower your strategic decisions.
| REPORT FEATURES | DETAILS |
| Base Year | 2023 |
| Historical Period | 2018-2023 |
| Forecast Period | 2024-2032 |
| Scope of the Report |
Historical and Forecast Trends, Industry Drivers and Constraints, Historical and Forecast Market Analysis by Segment:
|
| Breakup by Accommodation |
|
| Breakup by Booking Channel |
|
| Breakup by Tourist |
|
| Breakup by Consumer Orientation |
|
| Breakup by Region |
|
| Market Dynamics |
|
| Competitive Landscape |
|
| Companies Covered |
|
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