11 years
Hostels that operate like hotels and market to hotel guests are likely to see an increase in business travelers. Hostels that target backpackers are less likely to see any such trend.
The real story is not that hostels are changing or that business travelers are suddenly interested in hostels, but rather that some hostels are targeting new markets. Ultimately I think this is a (successful) PR piece for Generator. There have been quite a few Generator-focused press releases in the news lately with the same message: Hostels appeal to hotel guests.
This particular marketing pitch isn’t new. It started around the time of the economic crisis with the buzzwords “flashpacker” and “boutique hostel” and the idea gained momentum and media coverage. Now we’re hearing a lot about “luxury hostels” too. Why? Because investment companies with the staff and financial resources to influence the media have taken an interest. While it’s frustrating that the general population has a negative connotation of the term “hostel,” (especially in the US) that IS the case. This kind of media coverage has put a much more positive spin on the hostel concept, even if it only describes one segment of the industry.
It’s completely understandable why some operators would want to push the image of hostels in this direction too. They can recruit new customers, charge those customers higher rates, and make more money. Hotel guests are willing to pay more that backpackers, especially for private rooms. Instead of trying to capture more of the backpacker market, these hostels are reaching out into the hotel market to find new customers. As they say, “Don’t get a bigger piece of the pie, get a bigger pie.” It also makes it a lot easier to convince neighbors and local authorities that the new business in town is low-risk if they all think it’s a hotel.
In the end, I don’t think that most of us are going to be filling our bunks with guests in suits anytime soon.
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