Europe Hostel Market Insights Forecasts to 2033

• The Europe Hostel Market Size was valued at USD 2.56 Billion in 2023.
• The Market is Growing at a CAGR of 5.47% from 2023 to 2033
• The Europe Hostel Market Size is Expected to Reach USD 4.36 Billion by 2033

The Europe Hostel Market is Anticipated to Reach USD 4.36 Billion by 2033, growing at a CAGR of 5.47% from 2023 to 2033.   

Market Overview

Hostels are a type of lodging that is typically more affordable than hotels, providing a budget-friendly way to travel. Guests can book a bed, usually in a shared room, and enjoy access to communal spaces, kitchens, and laundry facilities. There are approximately 10,000 hostels in Europe, which has the second-largest number of hostels in the world. The cost of staying in a hostel in Europe varies based on the city, season, and dorm size. Prices can range from less than $20 per night in some Eastern European cities to over $100 per night in major cities during the summer. Additionally, the rising trend of solo travel has increased the demand for hostels, which offer excellent value for money, convenient locations, and opportunities for social interaction with fellow travelers. Millennials, in particular, are a significant driving force in the hostel market, as they tend to spend more on travel and are eager to explore the world. In response to changing traveler preferences, hostel operators are introducing hybrid models that include private rooms and co-working spaces, appealing to a wider range of guests.

Report Coverage

This research report categorizes the market for the Europe hostel based on various segments and regions and forecasts revenue growth and analyzes trends in each submarket. The report analyses the key growth drivers, opportunities, and challenges influencing the Europe hostel market. Recent market developments and competitive strategies such as expansion, product launch, and development, partnership, merger, and acquisition have been included to draw the competitive landscape in the market. The report strategically identifies and profiles the key market players and analyses their core competencies in each sub-segment of the Europe hostel market.

Driving Factors

The hostel market in Europe is influenced by several key factors. Europe has a long-standing reputation as a budget travel destination, making hostels a popular choice for travelers seeking affordable accommodations. The continent's rich cultural heritage attracts many visitors, and hostels provide an excellent option for those exploring multiple countries. Moreover, Europe boasts a vast network of low-cost transportation options, facilitating easier travel for tourists. Hostels also offer unique social experiences, including local tours and events, which enhance the travel experience.

Restraining Factors

Many people hold negative views about hostels due to misconceptions that they are exclusively for young travelers or that they are unsafe and unhygienic. Additionally, those who have had a bad experience at a hostel may unfairly generalize their negative opinions to all hostels.

Market Segmentation

The Europe hostel market share is classified into accommodation type and guest type.

• The dormitory rooms segment is expected to hold the largest market share through the forecast period.

The Europe hostel market is segmented by accommodation type into dormitory rooms, private rooms, family rooms, and others. Among these, the dormitory rooms segment is expected to hold the largest market share through the forecast period. The demand for dormitory rooms in the hostel industry is growing significantly due to several interconnected factors. Dormitory accommodations mainly attract budget-conscious travelers, particularly younger generations like millennials and Gen Z, who prioritize affordability in their travel experiences. By offering shared sleeping spaces, hostels can provide lower-priced options that appeal to solo travelers and groups alike. Furthermore, dormitory arrangements create a communal atmosphere that encourages social interaction and cultural exchange among guests from diverse backgrounds.

• The backpackers and solo travelers segment is expected to dominate the Europe hostel market during the forecast period.       

Based on the guest type, the Europe hostel market is divided into backpackers and solo travelers, students and interns, families, business travelers, and others. Among these, the backpackers and solo travelers segment is expected to dominate the Europe hostel market during the forecast period. The rising popularity of hostels among backpackers and solo travelers is largely due to their affordability and social atmosphere. Backpackers, who often have limited budgets, find that hostels offer a cost-effective option, allowing them to spend more on experiences and activities instead of accommodation. Hostels typically feature shared dormitory rooms and communal spaces, which encourage interaction and are perfect for solo travelers seeking to meet like-minded individuals. This communal environment not only enhances the travel experience through cultural exchanges but also fosters a sense of belonging, making it particularly appealing for those exploring unfamiliar destinations alone.

Competitive Analysis:

The report offers the appropriate analysis of the key organizations/companies involved within the Europe hostel market along with a comparative evaluation primarily based on their product offering, business overviews, geographic presence, enterprise strategies, segment market share, and SWOT analysis. The report also provides an elaborative analysis focusing on the current news and developments of the companies, which includes product development, innovations, joint ventures, partnerships, mergers & acquisitions, strategic alliances, and others. This allows for the evaluation of the overall competition within the market.

List of Key Companies

• Youth Hostel Association
• Safestay
• Meininger Hotels
• St Christopher’s Inns
• Generator Hostel
• A&O Hotels and Hostels
• Hostelling International
• Others

Key Target Audience

• Market Players
• Investors
• End-users
• Government Authorities 
• Consulting And Research Firm
• Venture capitalists
• Value-Added Resellers (VARs)

Recent Developments

• In October 2024, a&o Hostels, a popular hostel brand in Europe, is set to open its first location in Belgium with the launch of a&o Antwerpen Centraal on November 1, 2024. The property, formerly known as the “Century Antwerp” budget hotel, will undergo extensive renovations, with a&o investing 4 million euros through early 2025. This opening will mark the company's 41st location, expanding its presence across 11 European countries.

Market Segment

This study forecasts revenue at Europe, regional, and country levels from 2020 to 2033. Spherical Insights has segmented the Europe Hostel Market based on the below-mentioned segments

Europe Hostel Market, By Accommodation Type

• Dormitory Rooms
• Private Rooms
• Family Rooms
• Others

Europe Hostel Market, By Guest Type

• Backpackers and Solo Travelers
• Students and Interns
• Families
• Business Travelers
• Others