Independent Hostels that Offer Discounts for HI Members?

HI marketing describes their membership card as a "discount" card. Which I suppose it is from their regular rates for non members. This was more accurately a discount when there were no other hostels in a city. However today there are many choices for backpackers and a new city wide market price has evolved. Each city settles around a free market price, which the HI hostels match and then advertise this price as a free market comparative price but in reality it is a members only price.

Many travelers arrive expecting to pay the advertised price and then have shell out a premium because they are not members. All HI's in Canada have this complaint in their online reviews. Most HI's at least in Canada then add the various taxes on top of the market price + the premium ($3-$4 bucks for a dorm and $10 for a private usually). So say a dorm bed advertised at a market price of $25 becomes $25 + $4 + 13% tax (in Canada for instance) the final price being almost $33 which is a huge increase on a percentage basis. ie about 25%! Yes their are a few limited benefits to having a membership outside of the matching of market price in a city. (The customer is subsidizing the HI so they can offer market prices in a free market btw.)

In our hostels we get many guests that ask us if we accept HI membership cards. As I am positive most independent hostels do every day. I have also heard of hostels taking the card and giving a discount of some type. Usually this is done in a competitive market.

In Canada we are starting to have price wars more frequently in the major centres as more cheap options are presented to customers via the online booking engines. In the rush to grab suppliers the online booking agents have diluted many markets by allowing non hostels to list a few of their beds which has a downward force on prices, quality and service. These online services would be a lot smarter if they shifted their focus to improving the travelers experience rather than creating price wars. Working with hostels to improve the product and to reach out to new customers by showing why hostels are such great places to stay. Instead of watering the Hostelling product and customer experience down by introducing marginal non-committed players to our industry. But that is another topic.

Getting back to the membership card I am also interested to hear about anyone's experience with independent hostels offering discounts for HI members. We are developing a similar program and strategy right now and are interested in feedback too.