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Hostels have been a staple for young travelers between the ages of 18-35 since 1912. Even though the COVID-19 pandemic shook the travel industry, young adult travelers are already planning their future trips and hostels are an obvious part of their plans. Thanks to the many benefits they offer, hostels continue to remain favorable to young travelers. 

On that note, let’s have a look at the revenue streams of different types of accommodations in the hospitality industry. 

Hostels Versus Traditional Hotels

Hostel travelers spend an average of $4474 annually, as opposed to general travelers who spend about $3155 annually, according to an article by Forbes.

Though this may be an unexpected statistic, it’s not too surprising when one considers that travelers today are increasingly interested in valuable experiences and social connections. 

Traditional Hotels

Traditional hotels generate maximum revenue from room rentals, sale of food and beverages, and conference room rentals. They offer luxurious, comfortable accommodation with the assurance of privacy and security.

Some hotels may provide additional amenities such as gyms, swimmings pools, gaming centers, etc. However, these are usually in the more high-end hotels and are not universally available in every hotel.

That said, what traditional hotels lack is the casual, carefree, energetic ambiance of a dormitory or hostel.


Hostels, on the other hand, are unique stays. They have been extremely popular throughout Europe, and are gaining more popularity in Asia, usually in locations that offer a little taste of the city’s unique culture and landscapes. They’re also gaining momentum across the world amongst travelers regardless of age, ethnicity, and to some extent even income.

Hostels are much more than just a bed, bath, and breakfast set up. They offer a social element to their guests’ stay – something that traditional hotels lack. 

Yet, the most appealing aspect of hostels is that the space is shared by people of all kinds, with no restrictions! Guests are free to mingle and get to know each other, and perhaps even find a traveling companion.

Hostels offer all the essential amenities for a safe and fun trip, just like a hotel – you get access to a bathroom, a comfortable bed, and easy meals. A traditional hotel may surpass hostels where additional facilities for comfort and luxury are concerned. However, for most travelers today, it’s worth the bargain.

Social Locations And Revenue

If you are a hostel owner, you can use the social aspect of your accommodation to increase your revenue. Apart from stay and food, offer local tours to your guests. You can earn anywhere between 20-30% commission by selling tours and attract more customers at the same time! 

You can also consider going for a local joint venture partnership. Team up with local bars and pubs, movie theaters, tourist spots, etc. within walking distance from your hostel. Hotels in locations with an active social scene are also more successful in generating more revenue per guest. 

If you are located in an offbeat destination, offer transportation services to your guests in terms of car rentals, etc. Consider adding airport transfers, ticket bookings, etc. to your portfolio of services. 

Everyone Likes Hostels

Socializing is a huge aspect of any fun travel experience and having fun social experience can make your guests come back for more. Travelers today consider their accommodation to only be a minor aspect of the overall experience. They are more focused on enriching interactions with like-minded individuals, meeting new and interesting people to broaden their horizons, and just having fun with strangers!

Hostels offer them all of that, and more, usually at the fraction of a cost of a hotel room. So, if you’re a hostel owner, you already have a bankable business at hand. Just make it more profitable by adding different revenue streams discussed above. 

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