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Cloudbeds report signals new priorities for hostels in 2025

  • Cloudbeds
  • 27 March 2025
  • 2 minute read
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This article was written by Cloudbeds. Click here to read the original article

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San Diego, CA – Cloudbeds, the premier hospitality management software platform, has today released the second edition of its annual State of Hostels report.

The findings point to a shift in focus for hostelers in 2025. As labor shortages persist and travelers become increasingly price-sensitive, 2025 is emerging as the year of optimizing performance – with hostel operators under pressure to improve efficiency and profitability.

The State of Hostels report offers a snapshot of travel patterns operators can expect this year, along with strategies to optimize performance in a challenging and unpredictable market. The findings are grounded in data from 2,300 hostels across 62 countries worldwide, covering nearly 11 million bookings between 2022 and 2024.

Stephan Leuenberger, Head of Market Development, Hostels, at Cloudbeds, said: “In today’s evolving travel market, hostels are seizing opportunities to work smarter and deliver exceptional value to guests. Despite leaner teams and budget-conscious travelers, the industry is meeting challenges head-on with creativity, agility, and efficiency. We’re committed to empowering this vital lodging segment with the data, insights, and tools they need to capture market share and thrive in 2025.”

Key findings from the 2025 report include:

  • Dorms saw year-over-year occupancy growth in 2024, while private rooms dropped. This could indicate travelers’ increased confidence in sharing spaces.
  • Global average daily rates (ADR) for dorms declined by 1.7%, while private room ADR declined by 4% – reflecting softening demand and increased price sensitivity.
  • Online travel agencies (OTAs) captured 74% of hostel bookings globally – a 1% increase compared to 2023.
  • Longer stays were more popular with dorm bookings, with 14+ night stays making up 11% of all dorm reservations, compared to just 4% of private room bookings.
  • Weekends remained the main hub of activity, with 35% of reservations starting on Friday or Saturday, and 20% checking out on Sunday.
  • OTA bookings had the highest cancellation rate at 19%, followed by wholesale bookings at 14%.

Using aggregated and anonymized data from across the globe, Cloudbeds has also identified six emerging trends poised to reshape the travel landscape for hostelers and the wider lodging industry in 2025. These include the rise of value-driven travel, increased reliance on additional revenue streams, rising costs, labor shortages and high staff turnover, as well as the widespread adoption of AI in hostel operations.

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To download a free copy of Cloudbeds’ 2025 State of Hostels report, visit https://www.cloudbeds.com/hostel-report/.

Please click here to access the full original article.

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