A rise in solo travellers flocking to destinations for budget-friendly hostels is partly caused by break-ups and is causing a significant shift in the travel industry, according to Hostelworld's chief.
An industry traditionally geared towards couples is in the midst of a big change. Gary Morrison believes that the travel sector has long been "closed off" to adventurers. He pointed out that the change is spurred by an increase in people being "solo by circumstance, not by design", such as relocating to new cities or undergoing personal changes like ending a relationship.
"To a large extent, the travel industry has been kind of closed off to solo travellers and it doesn't really cater to them," Mr Morrison explained to the PA news agency. "Every single hotel room is for two people. I think, in the longer term, other parts of the travel industry will start catering to solo travellers – which is, to stop charging them for two-person rooms."
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Hostelworld, a global hostel booking platform, has also tapped into the social aspect of travel with its chat room app, introduced post-Covid pandemic. The app connects individuals who have booked into hostels at the same destination, enabling them to plan together or meet fellow travellers with similar interests.
Booking statistics from the site reveal that the share of solo travellers has increased from 57% in 2021 to 63% in 2024. Moreover, young female backpackers are now the fastest-growing demographic, driven by better chances to connect with fellow travellers and improved safety features like women-only hostel dorms.
Mr Morrison highlighted that the "vast majority" of European wanderlust is directed towards Asia, especially Thailand, lured by the affordability of hostels and lower cost of living. He conceded that this trend "obviously hurts revenues" for Hostelworld, which reported a dip in average booking values from 14.36 euros (£12.26) in 2023 to 13.21 euros (£11.28) in 2024 last month.
The CEO, whose passion for travel led him to Hostelworld, shared that the company aims to build the "world's largest travel network". While the chat function on their platform doesn't directly generate income, it fosters engagement that leads to bookings as users recommend stays or make economical reservations just to use the feature.
Mr Morrison disclosed ambitious plans for Hostelworld to harness artificial intelligence (AI) to analyse booking trends and traveller chats, aiming to gain deeper insights into international travel behaviours. He also unveiled intentions to broaden the platform's scope to include various budget-friendly accommodations beyond hostels.
The company is anticipating a "crunch" period as it invests in the new features and shifts its focus away from more expensive destinations, but this move is predicted to drive longer-term sales growth.
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