Hostels Market Report 2026

The hostels market size has grown rapidly in recent years. It will grow from $5.69 billion in 2025 to $6.35 billion in 2026 at a compound annual growth rate (CAGR) of 11.6%. The growth in the historic period can be attributed to growth of budget travel, rise of backpacker tourism, expansion of youth travel, popularity of shared accommodations, growth of online travel platforms.

The hostels market size is expected to see rapid growth in the next few years. It will grow to $9.79 billion in 2030 at a compound annual growth rate (CAGR) of 11.4%. The growth in the forecast period can be attributed to increase in solo travel, rise of digital nomads, growth of experiential tourism, demand for affordable urban stays, expansion of hostel chains. Major trends in the forecast period include growth of social and community based hostels, rising demand for hybrid hostel hotel concepts, expansion of digital booking and check in, focus on sustainable and eco friendly operations, increase in experience driven hostel stays.

The increasing migration of students for educational purposes is expected to drive the growth of the hostel market in the coming years. Student migration refers to the movement of individuals, mainly young people, from their home countries or regions to other countries or locations within their own country to pursue higher education or academic studies. Hostels benefit from their close proximity to educational institutions, affordability, flexibility to meet student needs, and their ability to foster a sense of community among diverse student groups, making them a vital housing option for students seeking convenient and cost-effective accommodation during their academic journeys. For example, in September 2024, according to the Parliament of the United Kingdom of Great Britain and Northern Ireland, a UK-based government agency, during the 2022-23 academic year, 758,855 international students were enrolled at UK universities, including 95,505 from the EU and 663,355 from non-EU countries. This represented the tenth consecutive year of record enrollment and accounted for 26% of the total student population. Therefore, the rising migration of students for education is fueling the growth of the hostel market.

Major companies operating in the hostel market are increasingly adopting strategic partnerships to introduce innovative services that address the evolving needs of budget-conscious travelers. Property management software is a digital solution designed to help property owners and managers efficiently handle operations such as bookings, payments, and tenant communication. For instance, in September 2024, The Hive Hostels, an India-based company, partnered with Crib Ltd., another India-based company, to digitize its operations and improve efficiency in preparation for an upcoming IPO. This partnership focuses on deploying Crib’s property management software to automate and optimize operational processes, including reservations, payments, and customer management. Through digitization, The Hive Hostels aims to improve resource utilization and strengthen communication between staff and residents.

In August 2024, Collective Hospitality Ltd., a Singapore-based company, acquired Selina Inc. for an undisclosed amount. Through this acquisition, Collective Hospitality seeks to expand its backpacker hostel portfolio by integrating Selina’s expertise in hostel operations. Selina Inc. is a UK-based company that provides hostel accommodations.

Major companies operating in the hostels market are A&O Hotels and Hostels, Che Lagarto, St Christopher’s Inns, Vietnam Backpacker Hostels, Loki Hostels, goSTOPS, MEININGER Hotels, Bohemian Hostels, Sundance Hostel, Beijing Downtown Travelotel, 11 Youth Hostel, Hostel One, Lijiang Garden Inn, Mad Monkey Hostels, Chengdu Dragon Town Sichuan Style Hostel, The Hosteller, Kunming Cloudland Youth Hostel, Viajero, Grand Pearl Hostel for Boys, New Teddy Hostel, Plus Hostels, Toc Hostel & Suites, Backpacker Panda, Generator Hostels, Hostelling International, YHA England & Wales, Clink Hostels, Safestay Plc, Combo Hostels, Vedanta Wake Up, Hostelling International Canada, High Garden Hostels (Nigeria), Canada Hostels, Wombat’s Hostels, Pakachere Backpackers Lodge, Green Tortoise Hostel, Moustache, The BIG Backpackers, Dar Surf Hostel, Nomads, International Youth Hostels (YHAI), The Hostel Crowd.

Asia-Pacific is the largest region in the hostels market in 2025. Asia-Pacific is expected to be the fastest-growing region in the global hostels market during the forecast period. The regions covered in the hostels market report are Asia-Pacific, South East Asia, Western Europe, Eastern Europe, North America, South America, Middle East, Africa. The countries covered in the hostels market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Taiwan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

The hostel market consists of revenues earned by entities by providing hostels and related services. Values in this market are factory gate values, that is the value of goods sold by the manufacturers or creators of the goods, whether to other entities (including downstream manufacturers, wholesalers, distributors, and retailers) or directly to end customers. The value of goods in this market includes related services sold by the creators of the goods. Only goods and services traded between entities or sold to end consumers are included.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD unless otherwise specified).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.

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