9 years
I think that the word itself is an iteration of the "flashpacker" and "boutique hostels" idea:
Boutique hostels
The general backpacking community is no longer exclusively typified by student travelers and extreme shoe string budgets. In response to demand, as well as increasing competition between the rapidly growing number of hostels, the overall quality of hostels has improved across the industry. In addition to the increase in quality among all styles of hostel, new styles of hostels have developed that have a focus on a more trendy, design interior.The phrase "boutique hostel" an often-arbitrary marketing term typically used to describe intimate, luxurious or quirky hostel environments. The term has started to lose meaning because the facilities of many "boutique hostels" are often no different from hostels that aren't referred to with that label. Also, marketers and online booking websites sometimes include boutique hotels in lists of "boutique hostels," further diluting any specific meaning of the phrase.
A related term, "flashpackers", often refers to hostels that target themselves as catering to a slightly older, tech-savvy clientele, but in practice, many of the new class of higher-quality hostels across the industry offer these tech-oriented facilities, and even the flashpacker websites that appeared in 2006-2008 during the peak of the "flashpacker" hype are neglected or offline as of 2012 as the term has rapidly lost popularity.
https://en.wikipedia.org/wiki/Hostel#Etymology
I don't know if the hostel scene needs a word like "poshtel", but as long as hotels don't creep into that definition, it doesn't really bother me. I don't know if the word will work in the US, since "posh" is not a well-known word here. To me, "posh" sounds like the "glam" in "glamping". It isn't my favorite word, but it may appeal to some travelers. Maybe it sounds better in UK English.
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