OFT CONSIDERED A more “non-traditional” choice of accommodation, hostels are seeing a rise in online bookings in recent years, according to Phocuswright. That surge is due in no small part to the fact that most hostel guests are young, between 18 and 34, and therefore more inclined to plan their trips on the web.
While the global hostel market is expected to grow from $5.5 billion in 2017 to $6.4 billion in 2020, the online hostel market also is expected to grow between 7 and 11 percent in the same time period, from $3.5 billion to $4.6 billion, according to Phocuswright’s Vice President of Research Douglas Quinby.
“More than 70 percent of revenue will be booked online, making hostels one of travel’s most highly penetrated online travel segments,” Quinby said in an article, adding that online travel agencies are the most popular channel for purchasing hostel reservations. “Amid a highly fragmented market of independently operated properties serving mostly younger, more price-sensitive travelers, OTAs have become the leading booking channel. OTA share of total hostel bookings will rise from 44 percent in 2014 to 54 percent by 2020, when OTA bookings will represent just over three quarters of online hostel revenue.”