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Is the dorm aspect of hostels dying?

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aboriginalhostel started this discussion 15 years 11 months ago

Scotch Argus' post in another, derailed thread made me thinking of his words and IMHO it's worth for a discussion in a new thread.

Just to remind, this was the post:

I do wonder how much of the market really wants to share sleeping accommodation though. As a HI hostel we used to get a lot of dorm bed bookings, but now it's mostly enquiries and bookings for private rooms. I think despite what people say the dorm aspect of hostelling is dying. 10 years ago most hostel beds sold would have been in dorms - now I'd say the majority would be in private rooms.

These words caught my attention. Once my thoughts settled and when I've read Hostelworld's newsletter this morning, I realized something... so I've been looking through the most of the previous articles what have been written about hostels and guess what? Most of these PR articles which has been sponsored by either Hostelworld or Hostelbookers, has one common message:

"Hostels are not dodgy. They have private rooms."

As a conclusion, what will these readers think of hostels? Hostels are good option for private rooms. Not dorms. Dorms were mentioned nowhere.

IMHO, the reason for a decline of demanding dorms is not just a trend, but a result of a campaign change from booking engines. As they are the biggest advertisers for hostels nowadays, hostels' revenue strongly depends on their results as well.

Without conspiring but from the booking engine point of view, selling private rooms is a better business. Why?

- Bigger commission (due the higher room price),
- there are more people to target from the classic holiday market,
- classic holiday travelers rather prefer to make secured bookings as their schedule is fixed (as opposite to backpackers, who rather tend to stay on a flexible itinerary, often still without making online bookings, especially during off season).

So there are some motivations, but how does it affect?

We live in a world of consumption and advertisements. If you run a business and don't advertise, you can shut it down before you even start it. The concept of an ad is providing a message to identify a product or service among others. It helps you to choose against else.
Ads are mind work. Our subconscious filters out a lot of unnecessary information: If I say think about a pink elephant, it pops into your mind, because your mind associates with the context. You won't think about blue, yellow, or green ones (until now because it's been mentioned ;)).

It happens the same when hostels are mentioned. Those who will read these articles, won't think about dormitories as an option, because it was not mentioned. Also IMHO those people who read these PR articles are not the same target group who wants to stay in dormitories.

On the other hand, there is still a a lot of opportunity promoting dorms.
The question is, can a cheap, socializing option win against the more expensive private rooms? Why are dorms better?

Meanwhile, should those engines campaigning after the "flashpackers"* and give a chance for other engines? Should hostels focus on and build up direct channels with our good old clientele?

(*-Flashpackers again: which seems to be a guessed, no-one-knows-who-they-are trend, as I haven't seen a concrete, facts proved definition for it - So tell your definition and discuss it ;))

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aboriginalhostel

15 years

this is really just the whole backpacker vs flashpacker discussion, but focussing on room types.

personally i think you'll find a split in the hostel community; some favouring the flashier, private room type, blurring the lines between hotels and hostels. others will go the other way and strip things back, emphasising the communal aspect, the social side of things.

I'd rather think that flashpacker hostels will merge into the hotel sector, meanwhile backpacker hostels will be reduced until the split happens and then grow again. You either follow a trend or be a rogue.

If flashpackers prefer private rooms, then flashpacker hostels will offer more private rooms. The big margin between hotels and hostels is the dorm, IMHO, so as soon as they won't have dorms, we could call them flashpacker hotels.

id see myself sitting in the latter camp; hostels are more than a business IMO. its a way of life.

ps... good lord, how cliched was that line?!?!?

Well, it wasn't that big cliche, no worries. :)

I'm saying this because I'm organising a non-profit organisation for such matter, it is called Backpacking Lifestyle. Will inform all of you as soon as I got further.

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Josh Hostels

15 years

I split this thread into two sections -- the part about travel and bicycling was moved here:
http://www.hostelmanagement.com/forums/budget-travel.html

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EuroHostels

15 years

We are, I guess, a 'Flashpacker' hostel. We are this way because we respond to market needs and trends very quickly. The more people that travel with laptops and iPods the more we need to cater towards them.
With 364 beds in 116 rooms we are continually finding that more and more people do not want to share a room with others if they can still stay cheaply in a private ensuite room. Each year we are reducing our 4 bed dorms and increasing our twin and double rooms. Also, each year, our yield per square metre increases.
We will always be a 'Hostel' and will always maintain our 8, 12 and 14-Person dorms, but if we can make more revenue from private twins and doubles we will continue to increase the availability of these roomtypes. Room configurations have nothing to do with the atmosphere and sociability of a hostel. This, to me, is the 'real' difference to a hotel... not where or how somebody sleeps.
We don't make the market, we respond to it... as all should.

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aboriginalhostel

15 years

We are, I guess, a 'Flashpacker' hostel. We are this way because we respond to market needs and trends very quickly. The more people that travel with laptops and iPods the more we need to cater towards them.

Dear Steve,

Thanks for sharing your thoughts. However I'd like to clarify my point: People traveling with iPods and laptops and staying in private rooms are not necessarily related to each other.

Humans are not homo sapiens (tool using man) anymore. We are homo informaticus (information using man), which uses technical gadgets and internet for every day, regardless how we travel. Laptops are portable, wifi is comfortable and easy to use even in your room and iPod is the biggest selling portable music device ever. So that is a general evolution on technology use, which has nothing to do especially with hostels.

However, there is a generation change between those who use dormitories or private rooms. If you do a quick check on your clientele, you can see that those guests who use private rooms are older, more frequent flight user and they travel less destinations than those who stay in dormitories. As you have several location in the UK, you can check that as well about how many private room guests have been to your other locations during the same trip or even at all? How many of them have they stayed in hostels at all previously?

With 364 beds in 116 rooms we are continually finding that more and more people do not want to share a room with others if they can still stay cheaply in a private ensuite room. Each year we are reducing our 4 bed dorms and increasing our twin and double rooms. Also, each year, our yield per square metre increases.

Cheap is relative... as you said your yield per square metre increases, which means your rooms are actually more expensive by making them private than having it shared. So it is definitely not cheap for those who used to stay in hostels, but for those who used to stay in four star hotels or B&Bs, was not convinced to stay in three star hotels but wanted to spend their time in a cheaper solution with similar standards.

We will always be a 'Hostel' and will always maintain our 8, 12 and 14-Person dorms, but if we can make more revenue from private twins and doubles we will continue to increase the availability of these roomtypes. Room configurations have nothing to do with the atmosphere and sociability of a hostel. This, to me, is the 'real' difference to a hotel... not where or how somebody sleeps.

That's the "problem" with the demand market... it is always changing. But how big is the demand from those private room guests to meet other people?

We don't make the market, we respond to it... as all should.

In all respect, let me have the option to have a different opinion in this matter. First of all you do make some market for yourself by branding. You advertise all your hostels under the same name and offer the same standards as well.

My favourite example is McDonalds (I don't want to compare it to yours or any other hostels), where you get the same quality and services, regardless you visit one in London, Edinburgh, Moscow or Bangkok. It works because you know you'll get the same quality, even if you choose only between the 6-8 kind of burgers.
It takes a while for everyone to find a decent, not overpriced and good service restaurant and you can pop in without having a reservation. So one global advertisement with global reputation does work well for the business. It's the same effect with hostels or any other products or services which can globalize. You trust Puma or Adidas more than a noname brand, even if it was made in the same factory in China.

Otherwise we all depend on the market advertisers. The way they promote hostels is the result what we get from them. You can name which resources you get the majority of your guests from but I doubt it will be more than three. As the trend goes, sooner you realize you'll find your major competition rather EasyHotel than other hostels, IMHO. They are just not as spread out yet.

I was wondering what can a property bubble give to these low budget high standard hotel business models, especially if the four stars will be too expensive? IMHO a lot of cheap properties for a lot of people who want to stay in a budget... :rolleyes:

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