Each week, we give you a rundown of the latest hostel industry insights and offer our take (we can also provide a variety of GIFs for your entertainment).
1. HOSTELWORLD COUNTS COST OF EUROPEAN HEATWAVE
“Hostelworld Group is the latest European travel company to bemoan the continent’s long, hot summer and its impact on bookings” – Source.
Last week, Hostelworld joined travel giants such as Thomas Cook and TUI Group to blame the European heat wave and the World Cup for a dip in bookings. Over the last couple of months, it’s been found that people who would usually take the summer months as an opportunity to travel have instead stayed at home to enjoy the hot weather the continent has received. As a result of this, Hostelworld’s bookings are down and they have stated that if the current trend continues, growth in group bookings are ‘likely to be flat for the full year’.
Hostelworld is currently going through a period of transition with a new business model, a new CEO Gary Morrison announced in June as well as a new CFO set to join the company in November. Rolling out a free cancellation policy in Europe in April has also altered their expected revenue – although the short term loss is predicted to bring the group in line with market leaders such as Booking.com and will benefit their bottom line in the long term.
2. WHAT INSPIRES US TRAVELLERS TO TAKE A TRIP?
‘‘Younger travelers tended to book closer to their date of travel compared to other age groups; 28% of travelers 18-34 years old booked their last leisure trip within two weeks of travel, compared to just 15% of travelers 55+.’ – Source.
Recently published research from Phocuswright has found that an increasing number of travellers are booking closer to their date of travel, starting their travel research on their mobiles and – perhaps surprisingly – opting to visit destinations they have been to before.
The survey of US travellers also found that the three most important factors when deciding on a destination were the ease of getting there, the food and dining experiences on offer and the landmarks and sightseeing options in the destination.
For hostels, marketing to American travellers presents a unique challenge – despite the popularity of hostels in other parts of the world, negative connotations still exist around the word ‘hostel’ in the US and the industry is only just gaining a foothold there. However, these survey results show that US travellers value the same factors as other travellers – a mobile friendly website with information on what to do and where to go in your local area is a must for all markets.
Although the survey shows that bookings are getting more last minute, the amount of time travellers spend researching is increasing. This gives hostels a much better opportunity of catching potential guests in their dreaming and planning phases – you can do this by sharing high quality images on your Instagram, writing inspiring blog posts or creating a destination guide filled with valuable information on your local area.
In addition to this, 6 in 10 travellers surveyed chose to revisit places they had been before. This shows that you shouldn’t forget about past guests when they check out – focus on creating brand loyalty with rewards schemes to make the most of returning travellers. Using mail-outs or email newsletters to sending offers and promotions to past guests is also a great way to encourage them to book that return visit to stay with you (and boost direct bookings too!).
3. TWO HOSTELS MAKE TIME’S 2018 WORLD’S GREATEST PLACES LIST
“Forget what you think you know about hostels.” – Source
Hostels are increasingly competing with hotels when it comes to providing quality accommodation and the inclusion of two hostels in Time’s 2018 World’s Great Places list is further proof of this.
COO Boutique Hostel Singapore and Generator Madrid were included in the ‘Places to Stay’ category, rubbing shoulders with luxury hotels like Six Senses Fiji and Marriot Mena House Cairo.
Their position reflects how the hostel industry has transformed in recent years to meet the needs of the modern traveller. With rapid improvements in amenities, a focus on design and more private rooms on offer, hostels are ruffling feathers within the travel sphere – transforming how competing accommodation providers are choosing to market themselves.
The use of online channels – such as social media – has driven bookings and helped change the way hostels are perceived by travellers.
It continues to be an exciting time for the hostel industry – we look forward to seeing what happens next…
Enjoy reading our blog?
You can get all the latest industry news, exclusive marketing tips & our special offers straight to your inbox by subscribing to our email newsletter.
PLUS you’ll receive a FREE guide to upgrading your hostel’s digital marketing when you sign up…
