Although hostels are not known for a lot of amenities and facilities, they are still getting quite popular among business travelers. People who only preferred 4-star or 5-star hotels are now looking for affordable alternatives during their stay in a city. The primary reason has been the drastic change in the appeal and facilities offered by most hostels. In fact, they’re not anything similar to what you experienced during the old backpacking days.
It is worth mentioning that hostels have been getting more stylish, especially the ones in Europe. In Europe, their user base still remains the strongest. For a particular kind of business travelers, staying at a high-end hostel might be a successful route to attending an association event in the most affordable manner. This route will be even more desirable and cost effective if such design trends reach various hostels in the United States.
The Current Trend
According to a survey conducted by the New York Times, many hostels are being occupied by business travelers. Although the share is small, it is still significant. The total number of business travelers staying at hostels has increased from about 12% to 14% between 2010 and 2011. Most industry experts claim that the increase can be attributed to numerous improvements made by hostels. Experts even believe that this trend will continue to increase with every passing year.
Why the Increasing Popularity?
It is important to understand that hostels have started focusing more on the different aspects of the interior design. This allows them to create the kinds of high-end and communal rooms you may be unable to find at regular hotels. Such rooms not only work well for travelers, but also allow them to meet new people in the city.
For instance, you can enjoy TV rooms, cinema style setups, quality kitchens and other such design aspects integrated into hostel rooms. In addition to this, some hostels even offer other hotel-like facilities, including swimming pools and conference rooms.
Generator Hostels is a popular chain of hostels. In fact, it is located in 7 different cities in Europe, and plans to set up two more establishments soon. In recent times, it has become one of the most popular hostel chains for offering high-end and upscale hostel experience. It’s not even scared to cross the oceans.
The company plans to hit the U.S. market soon. According to the Founder, Josh Wyatt, Generator Hostels has great ambitions from the United States. Currently, the company is in negotiations to set up a branch in New York. They will also be exploring other regions, including Washington D.C, L.A, Boston, Miami and more.
Will They Be Successful in the United States?
If Generator Hostels successfully moves to the United States market, it would face some serious competition. Many New York City budget hotels like The Jane and the Pod Hotel have a similar target audience. Moreover, there has been a rise in online Rent a Home services like Airbnb.
Such accommodation options are more affordable than hotels, but offer the same kind of services. However, experts believe that the U.S. market lacks consistent budget hotels, and hostels would be perfect for business travelers looking to cut costs without compromising on amenities and facilities.