Global Hostel Market Size, Share and Growth Analysis Report - Forecast Trends and Outlook (2025-2034)

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.

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Purchase the Regional Overview for USD 1099

If you choose to purchase the full report at a later stage, the amount already paid will be adjusted, and you will only need to pay the remaining balance.

Purchase the Regional Overview for USD 1099

If you choose to purchase the full report at a later stage, the amount already paid will be adjusted, and you will only need to pay the remaining balance.

Purchase the Regional Overview for USD 1099

If you choose to purchase the full report at a later stage, the amount already paid will be adjusted, and you will only need to pay the remaining balance.

Key Trends and Developments

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

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

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.