Hospitality management software platform, Cloudbeds, has published the second edition of its annual State of Hostels report.
The findings point to a shift in focus for hostelers in 2025. As labour shortages persist and travelers become increasingly price-sensitive, 2025 is emerging as the year of optimising performance – with hostel operators under pressure to improve efficiency and profitability.
Based on data from 2,300 hostels across 62 countries worldwide, covering nearly 11 million bookings between 2022 and 2024, it found that 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.
There’s been an increase of 1% in bookings captured by OTAs compared to 2023. It captured 74% of hostel bookings globally.
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, while weekends remained the main hub of activity, with 35% of reservations starting on Friday or Saturday, and 20% checking out on Sunday.
Finally, OTA bookings had the highest cancellation rate at 19%, followed by wholesale bookings at 14%.
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.”
Using aggregated and anonymised data from across the globe, Cloudbeds has also identified six emerging trends poised to reshape the travel landscape for hostellers and the wider lodging industry in 2025.
These include the rise of value-driven travel, increased reliance on additional revenue streams, rising costs, labour shortages and high staff turnover, as well as the widespread adoption of AI in hostel operations.
