What is a hostel? The comprehensive beginner’s guide

What are hostels?

A hostel is a type of accommodation that offers travellers an affordable stay and more opportunities to socialise with fellow guests.

What is the easy definition of a hostel? It’s simply a cheaper and more communal version of a hotel. Some hostels also offer long-term lodgings.

Why is it called a hostel? The word has roots in Latin and Old French, having been used to describe a place offering shelter, often shared, to travellers.

Is a hostel like a dorm?

Hostels traditionally offer shared sleeping quarters, called ‘dorms’. These rooms can have anything from three to dozens of beds, and offer travellers that cheaper, more communal and more social experience that hostels are known for.

Many properties also offer private rooms. What is a private room in a hostel? It’s essentially a hotel room within a hostel – sometimes minus a private bathroom – which gives a guest an opportunity to enjoy the social aspects of a hostel, while still retaining a level of privacy.

What is a hostel like to stay at? For a certain type of traveller, hostels are the ultimate type of accommodation, offering plenty of fun at a far lower price than any other type of property.

In this guide we’ll take a closer look at hostels: how they work, who they target, and what other types of properties can learn from them.

Difference between a hostel and a hotel

Is a hostel a hotel? No, not quite. The main difference is the communal nature of a hostel. While hotel guests largely keep to themselves, apart from potential interactions at on-site bars, pools and other communal areas, hostel guests tend to sleep, cook and relax together.

This privacy aspect is also the main difference between a hostel vs Airbnb, although some small, independent, boutique hostels may be allowed to offer beds through the Airbnb platform.

What is the purpose of a hostel?

The purpose of a hostel is to help guests save money, both through lower room rates and (usually) through the opportunity to cook for themselves using shared kitchen facilities, while granting them the opportunity to meet and mingle with other travellers.

What is a hostel room good for on the business side? Put simply, a dorm gives a property owner the chance to fit more people into their property, and to potentially make more money doing so. Hostels are also just fun businesses to be involved in!

Why do people stay in hostels?

Hostels are particularly popular with younger, budget-conscious travellers who are happy to enjoy more basic amenities. What are the benefits of staying in a hostel? Backpackers on longer trips can make their money stretch further while meeting like-minded people.

Why are hostels so cheap?

Simple: economies of scale. A hotel room for two can be converted into a hostel dorm for four, six, or maybe even eight. While a hostel might charge each of its guests far less, it can ultimately make more money by fitting in a greater headcount.

What is it like to stay in a hostel? Quality properties can offer a surprisingly luxurious experience! Many modern hostels offer privacy curtains on their dorm beds, while lower bed counts and female-only dorms can also make a stay more comfortable.

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Types of hostels

Hostels come in a few different categories, although there are areas of overlap for the types of hostel listed below (and many hostels might describe themselves as all three).

What is a youth hostel?

Youth hostels specifically cater to younger travellers. Some actually have age restrictions, only accepting bookings from guests who are younger (typically under 35).

What is a party hostel?

Party hostels are unashamedly social. They tend to have bars, and host on-site events most nights of the week. They will often organise tours of the local nightlife too.

What is a backpackers hostel?

Backpacker hostels cater to the long-term budget traveller. These hostels are often more economical, and usually offer guests a shared kitchen where they can cook their own meals.

Key features of a hostel: Room and house

What features define a hostel? A few include:

• Size and space: With a focus on fitting more guests in, hostels tend to be more compact and tightly packed than hotels. The challenge for property owners is to make the most of what you’ve got.
• Cleanliness and comfort: These two simple features are perhaps the most important for any hostel guest – they don’t ask for much, but they do want the property, particularly beds, dorms and kitchen, to be clean and comfortable.
• Amenities: Common hostel amenities include shared kitchens, pools, on-site bars, and communal relaxation areas.
• Privacy: In recent years many hostels have been offering guests greater levels of privacy by adding curtains or screens to hostel beds.
• Security: Many hostels give guests cards that grant access to their dorm and the hostel outside of reception hours. In-dorm lockers are also a must-have.
• Activities: Walking tours, game nights, family dinners and nights out as a group are great ways to build a sense of community within the hostel.

Examples of hostels around the world

Now that we’ve answered the questions “what is a hostel house?” and “what is a hostel room?”, let’s look at a few real-world examples from across the globe.

Hostels in Europe

• Pfefferbett Hostel, Berlin: What is a hostel in Europe that’s kicking goals? As perhaps the coolest hostel in one of the world’s coolest cities, it’s hard to go past Pfefferbett.
• Ostello Bello, Milan: Located in the heart of Milan, Ostello Bello is a vibrant hostel that was recently nominated as the best in Italy.

Hostels in the UK

• Seadragon Backpackers, Brighton: This boutique hostel pairs homely comfort with clever tech, including smart locks that grant property and dorm access with a smartphone.
• Castle Rock Hostel, Edinburgh: What is a hostel UK hoteliers can aim to replicate? Look no further than Castle Rock, which is continually voted Edinburgh’s best hostel.

Hostels in Spain

• The Central House Barcelona Gracia: Sleeping is optional at Central House, a beautiful property that feels like the answer to the question “what is a hostel in Spain supposed to look like?”
• Onefam Centro, Sevilla: This popular and ultra-social hostel hosts group activities every day and night.

Hostels in the USA

• California Dreams Hostel, San Diego: What is a hostel in the USA that captures the Californian vibe? Look no further than California Dreams, located steps from the beach.
• Generator Miami: A hostel in Florida that takes style to the next level, here you’ll enjoy budget yet boutique surroundings in the heart of Miami Beach.

Hostels in New York

• Chelsea International Hostel, 20th Street: What is a hostel in New York that almost any traveller could afford? This hotel, one of the city’s first, could be the answer.
• HI NYC Hostel, Amsterdam Avenue: This hostel offers a sprawling array of comfortable room options, and is part of Hostelworld’s Best Hostel Network in North America (2024).

Hostels in Australia

• Wake Up! Sydney: Located in the heart of the CBD, Wake Up! Sydney offers comfortable quarters and easy access to all the city’s most famous sights.
• Gilligan’s, Cairns: What is a hostel in Australia that’s not a hostel? Part hotel, part resort, all fun, Gilligan’s gives guests the best of every type of property.

Hostels in Japan

• UNPLAN Shinjuku, Tokyo: What is a hostel in Japan that gives you a distinct Tokyo experience? From the pod beds to the integrated tech, our pick is UNPLAN Shinjuku.
• The Evergreen Hostel, Hiroshima: Cosy and traditionally appointed, Evergreen in Hiroshima is also just five minutes’ walk from The A-Bomb Dome.

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Strategies to implement hostel-style elements

By taking a bit of inspiration from how hostels operate, and implementing hostel elements within your property, you grant yourself the opportunity to attract a large demographic of travellers that you may never have attracted before. Here are a few ways to do just that.

Create inviting communal spaces for social interaction

Lounges, shared kitchens, pool areas and on-site bars can encourage guests to interact. Human connections can greatly enhance the guest experience, and they do so with minimal effort from your side – all you need to do is provide the space for them to happen.

Diversify room options to attract a wider range of travellers

Consider adding discounted dorm beds to your room offerings. Or perhaps a private room with a shared bathroom. These options can help you attract a wider range of travellers.

Appeal to digital nomads and long-term guests

Create co-working spaces where digital nomads can work and network. Offer the fast and reliable internet that modern remote workers need.

Use efficient property management practices

In search of greater efficiency, hostels often lead the way in terms of tech. Consider implementing mobile check-in and self-service options, or streamlining guest communications through a dedicated tool.

Set flexible and competitive pricing models

Use a business intelligence tool to understand the room or bed rates that will earn you more bookings while making you more money. Save on OTA fees by offering direct bookings, and do all that you can to guide guests toward that booking option.

For modern properties, enhancing operational efficiency and pricing your beds smarter than your competitors is only possible with the help of smart tech – which is where SiteMinder comes in.