Hostelworld, a travel agency specializing in connecting travelers with hostels, recently introduced a chat tool for guests to communicate before staying at the same hostel, making it the first agency to offer this feature. Its app social features, used by around 80% of bookers, have been driving growth in reservations, catching the attention of other players in the online travel sector looking to boost user engagement. The company is also focusing on sustainability through a new partnership with hostels.
Despite a decrease in average booking value, Hostelworld reported an increase in net revenue in 2023, driven by a geographic mix that includes a significant surge in bookings in Asia. The company’s emphasis on sustainability is reflected in its collaboration with hostels on the Staircase to Sustainability initiative, which showcases hostels’ efforts in sustainability practices. Hostels are partnering with the Global Sustainable Tourism Council to promote eco-friendly stays, with Bureau Veritas conducting research to demonstrate the carbon emission benefits of staying in a hostel versus a hotel.
Hostelworld’s social features, such as chats and Hostel Hosted Linkups, have been well received by users, with around 80% of bookings now made by social members. The platform has city- and hostel-based chat rooms that allow guests to connect with others staying in the same city or hostel and participate in various activities. The social features have significantly contributed to the company’s revenue growth and increased user engagement.
The company is currently focused on innovating in its current category and monetizing its social features to grow market share in the next 18 months. Hostelworld is also exploring opportunities to cater to communities of travelers with higher disposable income, focusing on serving travelers with specific interests such as surfing, yoga, or hiking. The social aspect of hostelling, where guests can meet new people, has been a significant draw for travelers, leading to a surge in app bookings and revenue growth.
The demand for hostelling has been on the rise, with an increase in solo travel searches and a shift towards more solo bookings in recent years. Hostels are evolving to cater to a diverse range of guests, including families, with modern amenities and communal spaces. The stereotype of hostels being primarily for post-grad backpackers is changing, with a greater emphasis on community-driven accommodation at affordable price points. Hostelworld is capitalizing on these trends by providing social features that meet the needs of modern travelers seeking connection and community while traveling.
