Focus points for the backpacker Hostel space in 2022
Pranav Dangi, Founder of Hosteller
The pandemic-induced “new normal” has caused a tectonic shift in consumer behavior, especially when it comes to travel and hospitality, paving the way for new trends and practices. In addition, the notion of a backpacker is evolving; hostels are no longer solely for young, solo travelers. They have started appealing to a wide range of people, from professionals to families, depending on the brand and design, and particularly for those looking for affordable, experience-driven accommodations that will elevate their travel.
Additionally, with individuals working from home, the workcation trend has exploded, with several professionals packing their bags and their gadgets and setting off on workcations that last from anywhere between a week to months on end. These travelers often look for comfortable, safe, and pocket-friendly accommodations that will allow them to work and explore the locality. As a result, the demand for backpacker hostels has skyrocketed, resulting in fierce competition to expand and survive. As we begin the new year, here are some of the key focus aspects for the backpacker hostel industry in 2022.
Perfecting product-market fit
The importance of USPs (unique selling characteristics) in attracting guests to your hotel cannot be overstated. They are the eye-catching features of your hostel and even have the potential to make or break the business. As a result, the main focus for the backpacker hostel industry in 2022 would be on having a solid USP, improving the product from the customer’s perspective, allowing them to select your hostels every time they travel. And this can easily be attained by bringing in technological advancement in the operational structure, which leads to creating a seamless workflow for all the stakeholders involved.
Fundraising
Opening and successfully operating a hostel necessitates a sizeable financial investment. So, if players in this market want to grow their presence, they must focus on raising funds. Consider crowdfunding, which is a method of raising funds from a large number of individuals in a modest amount. It would not only assist them in raising funds for the company but would also increase brand awareness and reach.
Expansion into newer geographies
Progress is an essential aspect of every company’s success, for, without it, the business becomes redundant and will cease to exist. It is no longer sufficient to do business with existing clients to succeed in an increasingly competitive global market. Backpacker players should focus on expanding into new regions to develop a foothold in a country like ours, which has a rich culture that will allow them to explore new markets while also providing a solid pipeline to fuel their company’s future growth. The focus should be on creating a custom-tailored hub-and-spoke approach for operationally managing locations across several geographies.
Focus on powering the operational growth
With rising competition, hostel players must introduce tech-powered tools to make operational endeavors smooth and gain a competitive edge in the market. This will enable the team to understand customer needs better and respond to them more quickly than before. It will also give them more control to cater to travelers’ specific needs, keeping in mind the data from each hostel location.
Hiring the right talent
The players in the backpacker hostel industry should consider bringing in more new and skilled minds. The hired staff should be familiar with the hostel’s policies and procedures (Standard operating procedures). Above all, the focus should be fine-tuning the training modules to ensure seamless transitions. This would help to provide the guests with a hassle-free and memorable stay. It will also help in keeping a check on maintaining the service quality.
Bottomline
With people looking for more unique, experience-based stays that are affordable, hostels will continue to gain popularity as the preferred choice. If hostel players make the correct moves today to entice eager guests, their business in 2022 might expand like never before.
