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Hoteliers looking to get into hostel business

Tuesday, 24 May 20053 min read

Some hoteliers are eyeing the fast-growing hostel market.

“You have more guests who pay less but the cost of managing rooms is lower. Your decorating and servicing costs are also less,” said Niamh Ni Mhir, marketing director for Hostelworld.Com.

Her company is one of the largest in the market with 9,000 hostel properties in 155 countries around the world. Travelers can also pre-book tours, activities, bus or rail journeys, or bye air tickets at the Web site.

The biggest lingering misconception about hostels?

“That everyone has to stay in a large dorm room and share a single bath. People don’t always realize that most hostels have single rooms and private showers,” said Ms Mhir.

That makes hostels viable alternatives for families as well as couples, she says.

Other misconceptions about hostels: they have curfews, and residents are required to do chores. “That was years ago,” said Ms Mhir.

She adds that hostels have also become trendy. Hotelier Andrew Balazs cited hostels as the inspiration for his new boutique hotel, Hotel QT, in New York City.

Hostels traditionally have catered to younger “backpack” travelers, but that’s also changing, she says. Even seniors are frequently found in hostels.

Report by David Wilkening