Every fortnight, we give you a run down of the latest hostel industry news and offer our insight.
SELINA SECURE MORE HUGE INVESTMENT
Selina have secured a further $100 million in Series C financing and will use the funds to continue their rapid expansion as well as to invest in technology and talent.
Following on from their $150 million investment in real estate funding from DD3 Capital Partners at the end of 2018, the latest round has seen Selina reach a post-money valuation of $850 million. Co-founder and CEO Rafael Museri said in an interview that the startup is likely to tip over $1 billion in its next round.
Since launching in 2015, Selina have capitalised on the rise of the digital nomad and successfully tapped into the modern traveller’s desire to ‘live like a local’. This year, their rapid expansion will ensure even more remote workers can work, sleep and play with them – the plan is to open 35 properties across countries including the US, UK, Portugal, Israel and Greece.
As many of you know, we are a remote business ourselves and it’s really exciting to see accommodation providers like Selina (as well as groups such as Tribe Theory) creating communities and connecting digital nomads and entrepreneurs all over the world.
THE RYANAIR OF THE HOSTEL INDUSTRY
Everyone in the hostel industry knows about the design-led revolution that the sector has undergone – but is there a different model that can lead a hostel brand to success?
A&O Hotels and Hostels believe there is. Instead of focusing on concocting Instagrammable food and drink menus and creating slick social spaces, their main aims are to cut costs, prioritise pricing and offer guests as cheap a stay as possible.
Comparing his brand to budget airline RyanAir, CEO Oliver Winter said: “We bring some new demand because of the price, like RyanAir is creating demand…that’s what we’re doing as well but we never create the reason…to travel. That’s a bit different then Generator.”
So, is this what modern travellers are looking for? The hostel market is highly fragmented and with a wider scope of travellers now opting to stay in hostels, we believe there is space for both design-led hostels like Generator and cost-focused models like A&O’s.
Despite the well-known fact that millennial and Gen-Z travellers are all about the experience, many travellers are looking to explore the world on a shoestring budget and simply want a comfy bed in a great location. A&O’s purpose is not to inspire travel but to serve a purpose for travellers looking for an affordable place to stay.
And it is clearly working for them – A&O are currently the biggest commercial hostel operator in the market, ahead of industry giants Generator and Meininger. They have also chosen not to follow in the footsteps of their competitors by heading stateside – instead, focusing on expanding in European markets including Portugal, Italy and Spain.
As the industry continues to grow and change, it will be interesting to see how the wider scope of travellers choosing to stay in hostels allows for a variety of models to succeed.
TRIPADVISOR DWINDLING – IS THE AGE OF ONLINE REVIEWS OVER?
We all know that the power of online reviews is monumental – but, if the latest figures are anything to go by, the popularity of reviews on platforms such as TripAdvisor, Google and Facebook might be wavering.
Reviews on these platforms have been continuously growing year on year, but 2018 saw single-digit growth of 8% for the first time which suggests traditional online reviews have reached their maturity point. The popularity of TripAdvisor, in particular, is dwindling with a 21% reduction in the number of reviews left in 2018.
So, does this mean that guests are no longer interested in giving feedback to hostels online? Not quite. The fact is, the way travellers are sharing their experiences online is changing and it’s all down to one thing: social media. More and more travellers are sharing photos, videos and comments about their stays rather than taking the time to write out a full review.
When you consider that social media is exactly where travellers are now heading to find inspiration for their next trip, this is actually a positive change for hostels as long as you are providing a great guest experience.
From our experience managing our client’s social media accounts, we have seen an increasing number of guests sharing their thoughts about their stay (and tagging where they stayed) on Instagram and InstaStories. We’d love to hear where your hostel receives the most feedback so please let us know your experiences.
INSTAGRAM = ULTIMATE TRAVEL INSPO
More than half of those aged 18-65 booked their holidays based on Instagram posts, according to a new report by airline operator easyJet.
The report – which surveyed 2000 people – also found that almost a third of travellers said the biggest driver for choosing a holiday destination was based on its Instagrammability.
Daniel Young, Head of Digital Experience at easyJet, said: “As people’s attention turns to booking their summer holidays, our research shows that they are not only turning to social media to showcase their travels but also to inspire their next adventure in the first place.”
We may sound like a broken record but this research once again proves how vital it is for hostels to be putting out high quality, consistent content on social media – especially Instagram. Pairing inspiring photos of your hostel and destination with informative captions is a sure fire way to get noticed by travellers who might just be looking for an excuse to book their next trip. Don’t forget to add relevant, popular hashtags and location tags to ensure you are reaching the widest possible audience.
Need support getting your Instagram in check? We can help – drop us a message and let’s chat.
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