Trying to keep up to date with what’s going on in the hostel industry? We give you a rundown of the latest news and offer our insight.
TRAVEL MORE IMPORTANT TO GEN-Z THAN ANYTHING
Travel is a bigger priority for Gen-Z than any other generation – so much so, that they’re putting exploring the world ahead of saving up for a house, clothes, technology and eating out.
The findings from Booking.com’s latest report revealed that when travel was pitted against other spending choices, travel always came out on top for the younger generation.
When it comes to what they want from travel, experiencing the destination like a local is a given. We know from Expedia’s research last year that this generation are all about authentic experiences and activities that are unique to the destination – they continue to want more of that. 56% of Gen-Z are seeking an adventure-packed experience with 52% planning on trekking to an extreme location.
Recent research from Hostelworld found that solo female travel has increased by 88% over the past four years – and it’s not just the ladies who are taking off to see the world alone. The report found that a third say they prefer to be alone when travelling and almost 20% say they want to take a solo backpacking trip or gap year.
Hostels play a huge part in the increase in younger generations who feel comfortable and happy to travel solo. With authentic, local experiences on offer, hostels are also well positioned to capture this generation’s attention more than any other.
In your marketing, make sure you are showcasing these experiences and the social atmosphere of your hostel to appeal to solo travellers in particular. You can do this effectively through InstaStories and Highlights which show activities happening ‘in the moment’ and also by sharing that all-important user-generated content from past guests.
STOP THE HIGH PRESSURE SELLING, SAYS ALL TRAVELLERS EVERYWHERE
Travellers are increasingly not swayed – and not impressed – by high-pressure selling, the Maru/Matchbox’s 2019 Travel Benchmark Report has found.
The study shows that while 81% of holiday shoppers have experienced pressure messaging in the last year, only 56% actually booked earlier than planned because of it.
This comes after hotel agents such as Booking.com and Trivago faced intense criticism for ‘high-pressure’ selling tactics which include promoting room availability or the number of users viewing a property at one time. From September 2019, these tactics will be banned under the new CMA (Competition and Market Authority) regulations.
So, what DOES turn potential guests into bookers? Well, two in three travellers trust customer reviews when making purchase decisions and this overshadows even the best prices, promotions and pressures.
Customer reviews don’t just come in the traditional form any more, though – user-generated content on social media is another form of online review that the younger generations are increasingly turning to over sites like TripAdvisor. Make sure you’re sharing positive photos and videos from past guests on your social channels to build trust with your target audience. Mix up your content with inspiring yet informative captions and focus on storytelling over the hard sell.
To increase direct bookings, ensure your direct booking promotion code (and if you haven’t got one, create it today!) is in the bio of your Instagram profile. You can include it on some posts, but do so sparingly – modern travellers don’t like overly ‘salesy’ brands.
Don’t underestimate the power of the little things you can do online – when it comes to influencing travel purchase decisions, they make a big difference.
GENERATOR SWEEPING UP THE COMPETITION
Earlier this week, Generator’s backer announced that they have bought US competitor, Freehand Hotels, for a sweet sum of $400m.
Freehand, a micro-hotel operator which has four properties in New York, Chicago, Los Angeles and Miami, will be sold off to Queensgate Investment Co as the competition increases in the US market.
This is the latest in a series of moves by Generator that continues to distance themselves from their past branding as a hostel operator. Instead, they are moving more and more towards becoming an affordable boutique hotel brand with a range of lodging options which include dorms.
Generator CEO Alastair Thomann: “Our industry, in general, what we used to call the hostel industry, in terms of the luxury hostel, is moving more and more toward boutique hotels.
And you’re finding boutique hotels adding dorm rooms; they’re moving toward the hostel model. It’s more about the social spaces and the community. At some stage, we’re going to be very close together, these two segments.”
The US market is heating up as Generator’s European competitors such as Meininger are hot on their heels as they announce plans to head stateside soon too.
Will the US take to the big guns? Only time will tell…
GET MOBILE FRIENDLY – AND QUICK
Traveller’s purchase habits are constantly changing – and it is largely down to transforming technology and social media.
Adobe’s ‘State of Travel 2019’ report has found that customers are increasingly researching travel plans on their mobile but are switching to their laptop to book.
While 74% of hotel rooms are booked on desktop, 47% research happens via a smartphone – this shows the importance of a well designed, mobile-friendly website because if travellers can’t find the information they need on their phone, they’ll look elsewhere.
We’ve said it before and the reports keep rolling in saying the same thing – social media is one of the most powerful ways to market your hostel and encourage direct bookings.
The study also found that travellers are using platforms such as Facebook and Instagram to discover the next destination they will head too with one-third of 18-24 year olds finding hotels through social media. One-fifth of this age group are finding hotels through influencers which also illustrates the power of a (relevant) blogger or vlogger’s endorsement.
There’s a lot of ‘noise’ on social media but it’s worth the investment to get it right and get in front of your potential guests. Need some guidance? Drop us a message and let’s chat.
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