The youth hostel market - France (2024)

1.2 A fast-growing global market

Size of the global youth hostel market

A youth hostel is a friendly, short-term, low-cost type of accommodation in which guests can rent a bed, usually a bunk bed in a dormitory, as well as shared use of a lounge and, sometimes, a kitchen. Hostels offer advantages such as reduced expenses and the chance to meet people from all over the world, find travel partners and share travel ideas. [***]In ****, the global hostel market was valued at US$*.** billion and is expected to reach US$*.** billion by ****.

Hostel growth has outstripped that of hotels, mainly due to the rise of the so-called "millennial" population. The trend towards using third-party booking platforms, the growing number of international travelers and the increasing number of young people and solo travelers are other favorable factors. The inns market is expected to grow at a CAGR of *.*% during the forecast period ****-****.

Major global players in the hostel sector include MEININGER Hotels, Generator Hostels, Freehand Hotels, St Christopher's Inns, Wombat's, and Next House Copenhagen, with the six largest players each holding a market share in excess of *%. Europe represents the largest market, with a share of around **%, followed by Asia-Pacific with **% and North America with **%. The ...

1.3 Estimates and orders of magnitude for the French youth hostel market

Youth hostel market size

According to the latest data available at the time of writing, in ****, the "Youth" sector is made up of youth hostels, international holiday centers andsports centers, representing **,*** beds. These establishments welcomed ***,*** holidaymakers, generating over *** million euros in sales. [***]

The youth hostel sector saw a turning point in the ****s with the entry of private players into the market and the creation of hostel chains. In France, one of the first to open was St Christopher's Inn on the Canal Saint-Martin in Paris. Hotel giant Accord founded a specialized hostel brand called Joe&Joe, which had six establishments in France by ****.

While the sector posted exceptional growth in ****, with the number of establishments up **% between **** and **** and the number of beds up **%, the sector underwent a revival in ****. The term "collective hostels" now officially covers youth hostels, hostels, international holiday centers and some mountain refuges.

The exact distinction between youth hostels and hostels is somewhat blurred: some articles and studies consider them to be two separate categories, while others lump them together as budget and super-budget hotels. Whatever the case, according to KPMG, while the number of super-economy and economy hotels in France is declining, with a supply ...

2.1 French tourism in 2023

The different types of travelers can be grouped as follows:

Source: ****

The reasons for travel are

Leisure, relaxation and vacation Visiting family and friends Health (***) Pilgrimages, sporting events, school trips, etc.

**% of French people went on vacation in summer ****. France is still the preferred destination, even if it has been declining since ****. Poll: Where did you go on vacation? France, in ****, in Source: ****

Most types of accommodation used are for sale. The most popular type of accommodation is with family or friends (***). Poll: what type of accommodation did you use for your vacation? France, in ****, in Source : OpinionWay **% of French people did not go on vacation in summer ****. For **% of them, this choice was linked to financial constraints, a figure up *% since ****. **% also chose not to go on holiday because of high fuel prices, a figure down *% since the previous year. Among the populations most affected by financial constraints, women are more likely to be affected (***), as are adults aged ** to ** and the economically inactive. Single people are also more affected.

Poll: Why didn't you go on vacation this summer? France, in ****, in Source : OpinionWay To adapt to financial constraints, the first behaviors adopted by the French are to favor ...

2.2 Young people: travel and vacations in 2024

In February ****, Webedia conducted a survey on the travel habits of **-** year-olds, who are the primary customers of hostels and youth hostels.

According to KPMG, **% of hostel guests are individual travelers, **% are foreign tourists, and the majority are aged between ** and **.

Representing a third of the world's population and making an average of *.* trips a year, young people and millennials are a solid and resilient business base. They were among the first to resume travel after the health crisis. Thirty-three percent of millennials are influenced by Instagram in their choice of destination, while seventy-eight percent consult online accommodation reviews before making a decision.

Young people, in particular, show a strong desire to travel after years disrupted by the Covid epidemic. Indeed, **% of **-** year-olds plan to travel more in the next few years, compared with **% of the overall sample. For them, travel is synonymous with strong emotions, such as joy and excitement, feelings that are less pronounced among French people as a whole.

The main motivations for travel for **-** year-olds include discovery (***).

Poll: Why do you travel? France, ****, in Source: ****

When it comes to choosing between traveling more often or further afield, only **% of French people opt for "further ...

2.3 Seasonal demand

An analysis of the frequency of Google searches in France for the terms "hostel " and " auberge de jeunesse " shows that demand is highly cyclical: peaks between mid-July and mid-August , and troughs between mid-November and mid-December, reflecting seasonal demand in summer.

Search frequencies for the terms "hostel" and "auberge de jeunesse" France, ****-****, Google index Source: ****

Interest in youth hostels in France still comes mainly from the French. The graph below shows which term is most searched for by region. Hostels are most popular in the Ile de France, Nouvelle Aquitaine, Grand Est and South East regions. It's worth noting that just two years ago, the term hostel was the most popular in most French regions.

Source: ****

NB: The two graphs above represent the proportion of searches for a given keyword́ in a region and for a specific period, in relation to when the rate of use of this keyword́ was highest (***). Thus, a value of ** means that the keyword was used half as much in the region concerned, and a value of * means that the data for this keyword is insufficient.

In the fourth quarter of ****, hotel occupancy stood at ** million nights, down *.*% on the same period in ****. This decline was ...

2.4 Demand trends: between solo travellers and new customers

More and more people are traveling alone. This change is visible on a global scale, as traditional single-place trips are being abandoned in favor of short-term stays in several locations.

Frequency of Google searches for the term "solo travel World, ****-****, Google index Source: ****

in recent years, Google search interest in the keyword "solo travel" across all categories has evolved positively overall, demonstrating the growing relevance of the topic to all aspects of everyday life.

Solo travelers are motivated by a number of different reasons, although they generally have one thing in common: the desire to interact with others in order to enjoy a local experience. Indeed, solo travelers are regulars at hostels, which are known to be social places. Hostelworld saw a ** percent increase in solo bookings between **** and ****.[***] By ****, **% of nights booked at hostels in France were solo bookings.

Breakdown of hostel nights in France between individual and group bookings France, in ****, in Source: ****

In fact, solo travelers are increasingly women travelers. Blogs, Facebook groups and books on how and where to travel solo as a woman have become increasingly popular in recent years. Examples include Jenny Diab 's Facebook groups Voyager au féminin en sac à dos (***). [***]

3.1 Geographical distribution of youth hostels in France

growth in the number of youth hostels and hostels in France

According to INSEE, in ****. There were *** youth hostels in mainland France, mainly in Auvergne-Rhône-Alpes (***).

The French territory is thus well covered, except for Paris, which has around half as many hostels as cities like Berlin or London. One possible explanation could be the very large number of hotels and Airbnb (***), as well as the very high property prices in Paris.

Source: ****

New challenges and competition

The new hostels seem to be shaking up the youth hostel sector. The arrival of new private players is dusting off the almost century-old model, adapting to the changing expectations of their young customers. [***]

Establishments run by associations still account for **% of the offer, but the giant Accor, among others, landed the market in **** with its low-cost chain Jo & Joe, which already had six establishments in France by ****.[***]

"They've arrived with resources, and their rates are getting closer and closer to ours, with new buildings when we sometimes face renovation challenges,"agrees David Le Carré, General Delegate of the Fédération unie des auberges de jeunesse, the French branch(***) network, which brings together *.*** hostels. He adds: "This forces us to keep up ...

3.2 The different booking channels

Hotel reservations in Europe by channel in ****

Most overnight stays in Europe are booked directly with the hotel Europe, ****, % of total Source: ****

In total, online bookings and social networks account for **. *% of all hotel bookings in Europe in ****. The majority of offline bookings are made directly with the hotel or via a travel agent.

Despite the increasing digitization of the accommodation sector, offline bookings still account for a third of all hotel bookings in Europe. More than half of all European guests book their accommodation directly with the hotels where they are staying, whether offline or online.

OTA booking

According to a figure published by the Tendance Hôtellerie website , as early as ****, two-thirds of hostel revenues were generated by online bookings (***). This corresponds to a younger clientele, who want to be able to book from their phone.

Another source, from a BFM article citing figures from a Phocuswright study, indicates that the share of online bookings for all hoteliers has risen from **% in **** to **% in ****.

The general trend in the hotel industry is to increase the share of online bookings This phenomenon is further accentuated by youth hostels, which cater to hyper-connected young people.

Online booking has even become a ...

3.3 A fragmented market

Despite the emergence of hostel chains, their importance remains fairly limited. For example, according to The Wandering Walker, the Mad Monkey Hostel Group, which operates in Asia and Australia, has "only" ** hostels, * of which are in Southeast Asia. Similarly, Vietnam Backpackers' Hostels has just * establishments worldwide.

Thus, the hostel accommodation offer is mainly covered by independent hostels or small groups, rather than large chains imposing their model. This is probably linked to the ideal of freedom and authenticity associated with the youth hostel, which is difficult to reconcile with the need for security that the brand image of an international group would bring.

For this reason, St Christopher's Inns occupied a significant amount of space, opening "only" two hostels in Paris between **** and ****. Similarly, other chains such as Generator and Meininger opened an establishment in the capital in **** and **** respectively. In spite of this, the supply is low, although growing; the director of the regional tourism committee, François Navarro, declared in early **** that Paris, although lagging behind other European capitalsennes, is improving, with supply crossing the year **** mark from *,*** to *,*** beds between the start of **** and ****, and by ****, an additional *,*** beds are expected . [Les Echos

Nevertheless, we're facing a highly ...

4.1 Player panel and offer typology

The offer in a nutshell

A quick look at the offers available on the Internet reveals that the different hostel accommodation packages are very similar. They offer a bed in a shared room or dormitory, access to sanitary facilities, as well as communal areas such as lounges and cafeterias where you can eat and get to know your fellow travelers.

Hostels may sometimes have limited food or a bar, but this is not the norm. Breakfast is generally not included, and staffing is very limited.

As the competition is mainly on the price per night, hostels are encouraged to align themselves on a common model, and offer a travel experience and encounters with other travelers rather than a "comfortable" stay.

According to the Don't Mess With The Receptionist website, the characteristics of the hostel offer are shared dormitories where the model is based on a price for a bed rather than a room, a reasonable price, shared rooms, storage space for luggage, shared bathrooms and friendly staff.

Nevertheless, there is also a more upscale offering, with private rooms for example, which have become democratized in hostels, with * out of ** establishments offering them in ****[***].

Typology of the offer and its players FUAJ ...

4.2 Youth hostels focus on price competitiveness with traditional hotels

Average rates for hostels and youth hostels are much lower than those for conventional hotels, while overall hotel prices have risen in recent years.

Average hotel price excluding tax January ****, France, in €/night Source: ****

we can see that even "super-eco" hotel offers have a higher average price than some hostels : for example, vertigo offers a bed for **euros, Gastama, FranceHostel or Meininger ** euros and Eklo hotels ** euros.

In ****, the average price of hostels, excluding taxes, was €** in Paris and €** in the provinces. [***]

4.3 Typology of prices in France

Looking in the Hostelworld catalog, taking the price for one person in August **** in several European capitals and in several French cities, we get the following table:

Source: ****

It's interesting to note that while prices are fairly similar between private groups, it seems that the FUAJ (***). [***]

Chains arriving in Paris will be able to lower prices, as Meininger or France Hostels own or plan to own several establishments, and only want to offer overnight stays from €**, thus aligning themselves with European entries.

4.4 Between "coliving" and "youth hostel" concepts

In recent years, we've seen the rise of"coliving", a lifestyle that falls somewhere between the concept of shared accommodation and that of a hotel residence. In effect, this concept implies the idea of sharing one's private life, but also of working with someone else, as in a coworking space. These spaces often offer large accommodations that can be occupied by up to ten people (***), with private spaces as well as attractive communal areas. By ****, the coliving market will account for over *,*** spaces in France.

As a result, startups such as Casa Coliving and Colonies are entering this fast-growing market, always on the lookout for more innovation (***). [***]

In this way, it is also possible to link the youth hostel concept with that of coliving, which is what Bordeaux-based CG Saumur is working on. Indeed, its aim is to open a high-end youth hostel in Saumur by ****, also offering "coliving" as well as "coworking" spaces, depending on customer preference. [***]

5.1 Current regulations

Like all establishments catering to the general public, hostels and youth hostels must comply with current regulations on safety - concerning technical installations in particular - and with hygiene rules

As for youth hostels

The Ministry of Youth and Sports (***) Accommodation for schoolchildren (***) Organized stays (***)

Regulations relating to the Covid-** pandemic

The site ordinance no. ****-*** of March **, **** is related to the financial conditions for the resolution (***) of certain tourist travel and vacation contracts in the event of exceptional and unavoidable circumstances or "force majeure".

It applies to contracts whose cancellation is notified by the consumer, the professional or the consumer association (***).

The said ordinance is based on article ** of the law on the protection of the environment, emergency law no. ****-*** of March **, **** relating to the Covid-** pandemic , which authorizes the government to take measures likely to derogate from the provisions applicable to contracts for the sale of travel and stays. Its aim is to enable professionals to offer credit instead of refunds.

5.2 Youth hostels can now be classified in 2022

Since September **, ****, youth hostels have been able to apply for classification. This classification certifies that the hostel meets * major quality criteria (***). [***]

6.1 Segmentation

• St Christopher’s Inns
• Generator Hostels
• Jo & Joe
• France Hostels
• Meininger
• SLO Living Hostel
• Cool & Bed
• Vertigo
• Gastama
• Fédération Unie des Auberges de Jeunesse