WYSE Travel Confederation recently released the results of their most recent youth and student travel survey in their New Horizons IV report.
With more than 57,000 responses from 188 countries and territories, the survey reveals trends and habit changes in the constantly changing youth travel market.
Here are our 5 key takeaways for hostels:
1. MILLENIALS ARE STILL THE KEY YOUTH TRAVEL GENERATION – BUT GEN-Z ARE HOT ON THEIR HEELS
“Different information sources are also key for the next generation of youth travellers, generation Z.”
Millennials have long been the focus of youth travel marketing efforts, and rightly so – they still accounted for over 80% of respondents in the survey. But attention has began to shift to the next generation.
Generation Z (travellers in their late teens/early twenties) are totally technologically savvy and have grown up using smartphones – which could explain why bookings by this group via mobile internet grew significantly in 2017. They get their information from an ever-growing number of sources, including social media. In fact, social media plays a big role in where Gen-Z travellers want to go – more than a third of this generation have chosen a destination specifically because they saw a post about it on social media.
For hostels, this means selling your experience and the experiences of your past guests by re-posting the pictures and videos they share online. You can find this content by keeping an eye on any photos your hostel is tagged in and searching for your hostel’s name under ‘Places’ on Instagram. Don’t forget to ask permission before you post!
2. NEW TARGET MARKETS ARE ON THE RISE
“The youth travellers themselves have changed, with the traditional picture of the backpacker on a shoestring budget being augmented with the upmarket flashpacker and the globetrotting digital nomad.”
Digital nomads are travellers who use technology to work from anywhere in the world. This relatively new market is set to grow as freelance and location-independent work becomes more mainstream – in fact, it’s predicted that 50 per cent of workers will be working remotely by 2020.
With this growth will come an increasing demand for co-working spaces and fast, free WiFi. Many hostels have decided to set aside designated co-working spaces and some – like Tribe Theory hostels – have been designed to cater to the co-working community.
Flashpackers are another group on the rise – these travellers want to experience the finer things in life without sacrificing the flexibility of low-cost accommodation. With a larger budget than your average backpacker, they’ll be looking to spend on unique activities, eating out and travel comforts (like opting for a private room over a dorm). They are likely to be attracted to boutique hostels and ‘poshtels’.
3. EXPERIENCES > THINGS
“By saving money on travel and accommodation, young people have more cash available for experiences in the destination.”
If you follow us on social media (and Instagram in particular), you’ll see that we’ve often mentioned how today’s young travellers value experiences – and the results of the New Horizon’s survey prove this to be true. In fact, the number and range of activities undertaken in the destination is growing, with a 26% jump in 2017.
It’s important to show potential guests the different activities you have on offer that are unique to you and your destination. In today’s world though, sometimes a picture is not enough – can you use InstaStories to capture the highlights of one of your tours? Or use live video to give potential guests a glimpse of your weekly events?
Try to think outside of the box to catch the attention of Gen-Z travellers – their online attention span may be short but if they see something great, they’ll be sure to stick around.
4. THE LINES BETWEEN HOSTELS AND HOTELS ARE BLURRING
“The growing youth travel market is also seeing increased blurring of travel products, with combined hostel/hotels or mixed modes of travel becoming more common.”
Over the past 10 years, the hostel industry has transformed to meet the needs of modern travellers. From the rise of ‘poshtels’ and luxury options to eco friendly lodges and co-working communities, it’s easy to see that hostels around the world have stepped up their game.
This transformation has largely been led by innovative chains like Generator whose focus on stylish design, social experience and affordable luxury have earned them the top spot in this new generation of hostels.
On the flip side of this, hotels are now beginning to see the value in offering accommodation with shared spaces and a focus on social interaction with chains looking to replicate Generator’s success. Accor Hotels have stepped into the market with new brand Jo & Joe which they say “blends the best of private-rental, hostel and hotel formats”. Whether huge hotel brands like Accor will be able to recreate the authentic, social vibe of a hostel remains to be seen but it’s certainly an area to keep an eye on.
5. SUSTAINABILITY WILL GROW IN IMPORTANCE
“Questions around sustainability and the impact that travellers have on the places and people they visit will continue to be asked… Youth travel is an opportunity to influence positive change in sustainable travel behaviours.”
The wave of sustainable travel has been led by millennials – they are more likely than any other generation to give back to the areas they go to and seek out businesses which place an emphasis on eco-friendliness. Gen-Z are likely to follow suit and will expect sustainable action and practices from the places they stay.
There are many hostels already championing sustainable travel and putting huge efforts into running their hostels as environmentally friendly as possible. Sleep Green Barcelona use an electricity provider whereby 100% of their energy comes from renewable sources, The Backpack have solar hot water geysers and Eco Pampa Palermo use ecological computers that have been made with less plastic and produce less carbon emissions.
Becoming an eco-friendly hostel doesn’t need to happen overnight – think about small changes you can make today that will begin to make a big difference in the future.
In conclusion – exciting times ahead!
The hostel industry is on the rise and change is afoot – but with these changes come new opportunities.
With technologically savvy modern travellers who not just want but expect high online standards, it’s time for hostels to get serious about their digital marketing.
To access the full report from WYSE, click here.
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