Digital Dominates Amid Hostels’ Ascent

Douglas Quinby | May 4, 2018

By Douglas Quinby The broader travel industry may bucket hostels into "alternative accommodations," yet this often-overlooked sector is showing higher online penetration than the hotel or vacation rental categories. Younger travelers (18-34) comprise the largest share of hostel guests, and these digital natives have fueled rapid adoption of online and mobile hostel booking. The US$5.5 billion global hostel market in 2017 will grow to nearly $6.4 billion in 2020. Over the same time period, the online hostel market will grow 7-11% annually, rising from $3.5 billion to $4.6 billion. More than 70% of revenue will be booked online,...