Hostelworld CEO Gary Morrison recently spoke about the role of hostels in the lodging market and his company’s future plans. According to Morrison, hostels cater to a specific need: social connections. Unlike hotels or short-term rentals, where privacy is highly valued, hostels aim to create a space for travelers to meet and connect with others. This is particularly important for solo travelers who are looking for companionship but don’t have anyone to travel with.
Morrison believes that accommodation options like hotels, Airbnbs, and bed and breakfast inns are just descriptions of the type of place people stay in. Instead, he suggests thinking about the underlying need these accommodations satisfy. For Hostelworld, that need is to help people find others to hang out with while traveling.
While the company primarily targets travelers who prioritize social connections over business or leisure, they are not ignoring other segments of the market. Morrison acknowledges that there are travelers with higher disposable incomes who may be looking for different experiences. To cater to them, Hostelworld is considering creating a sub-brand that offers different kinds of accommodations, such as longer weekend stays instead of extended vacations.
Morrison mentioned the possibility of acquiring a small business with a suitable brand and domain name to accomplish this. By 2025, he expects Hostelworld to have either organically created a sub-brand or acquired one. The goal is to address the “loneliness segment” and provide travelers with more social-focused features.
In the next three years, Hostelworld plans to focus on growing this new brand alongside their existing business. Morrison hopes that by the summer of 2025, they will have a solid brand in place. However, he also remains open to the possibility of an acquisition if the right opportunity arises.
Overall, Hostelworld aims to position itself as a platform that not only connects travelers with affordable accommodation options but also helps them forge social connections. By understanding the specific needs and desires of different traveler segments, Hostelworld hopes to expand its offerings and provide a more comprehensive range of experiences for its customers.