A recent article in The Times covers the changes happening at YHA in the UK:
"More than 30 loss-making youth hostels are to close under plans to revitalise the ailing network announced yesterday.
Changing holiday tastes, combined with debts of more than £30 million, have driven the Youth Hostels Association (YHA) to take the radical step, which will lead to the loss of about 70 workers.
Roger Clarke, the chief executive, said the closures, many in remote locations, would help to fund an £18 million package to update the rest of the association’s 227 hostels in England and Wales over the next ten years...
Instead, with budget flights luring young people abroad and boutique hotels changing the face of weekend breaks, youth hostels are having to modernise to compete. Bedrooms for two, four or six people are replacing bigger rooms shared with strangers, private showers are replacing washrooms and many hostels are now serving alcohol to accompany high-quality meals made with local produce, Mr Clarke said."
You can read the rest of the article here.