Market overview
The global hostel market is worth USD 7.3 bn in 2026 and is forecast to reach USD 12.2 bn by 2036, growing at a 5.2% CAGR. United States is the largest country market and Dormitory beds is the largest by room type segment.
| Scope | Revenue of hostels and budget shared-room lodging from dormitory beds, private rooms, food and activities, sold mainly to backpackers and young travellers. |
|---|---|
| Industry | Travel and Tourism |
| Value 2025 | USD 7.0 bn |
| Value 2026 | USD 7.3 bn |
| Value 2036 | USD 12.2 bn |
| CAGR 2026-2036 | 5.2% |
| Volume 2026 | 287 million bed nights |
| Volume 2036 | 372 million bed nights |
| Average price 2026 | USD 25.6 per bed night |
| Report price | Starts from USD 1,999 |
| Published | November 2026 |
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Hostel market size and forecast, 2026-2036
Source: Compare Market Research analysis.
© 2026 Compare Market Research. All rights reserved.
| Year | Market value |
|---|---|
| 2026 | USD 7.3 bn |
| 2027 | USD 7.7 bn |
| 2028 | USD 8.1 bn |
| 2029 | USD 8.6 bn |
| 2030 | USD 9.0 bn |
| 2031 | USD 9.5 bn |
| 2032 | USD 10.0 bn |
| 2033 | USD 10.5 bn |
| 2034 | USD 11.0 bn |
| 2035 | USD 11.6 bn |
| 2036 | USD 12.2 bn |
Hostel market segmentation
By room type
Source: Compare Market Research analysis.
© 2026 Compare Market Research. All rights reserved.
| Segment | Share 2026 | Share 2036 | Value 2026 | CAGR 2026-36 |
|---|---|---|---|---|
| Dormitory beds | 58.0% | 54.5% | USD 4.3 bn | 4.5% |
| Private rooms | 34.0% | 35.1% | USD 2.5 bn | 5.5% |
| Capsule and pod beds | 8.0% | 10.4% | USD 588 mn | 8.0% |
By booking channel
Source: Compare Market Research analysis.
© 2026 Compare Market Research. All rights reserved.
| Segment | Share 2026 | Share 2036 | Value 2026 | CAGR 2026-36 |
|---|---|---|---|---|
| Online travel platforms | 62.0% | 66.6% | USD 4.6 bn | 6.0% |
| Direct bookings | 30.0% | 26.6% | USD 2.2 bn | 4.0% |
| Groups and travel agents | 8.0% | 6.8% | USD 588 mn | 3.5% |
By hostel size
| Segment | Share 2026 | Share 2036 | Value 2026 | CAGR 2026-36 |
|---|---|---|---|---|
| Under 30 beds | 30.0% | 28.0% | USD 2.2 bn | 4.5% |
| 30 to 100 beds | 46.0% | 44.0% | USD 3.4 bn | 4.7% |
| Over 100 beds | 24.0% | 28.0% | USD 1.8 bn | 6.8% |
By traveller age
| Segment | Share 2026 | Share 2036 | Value 2026 | CAGR 2026-36 |
|---|---|---|---|---|
| Under 25 | 40.0% | 36.0% | USD 2.9 bn | 4.1% |
| 25 to 34 | 38.0% | 38.0% | USD 2.8 bn | 5.2% |
| 35 and over | 22.0% | 26.0% | USD 1.6 bn | 7.0% |
By ownership type
| Segment | Share 2026 | Share 2036 | Value 2026 | CAGR 2026-36 |
|---|---|---|---|---|
| Independent hostels | 56.0% | 50.0% | USD 4.1 bn | 4.0% |
| Hostel chains | 28.0% | 32.0% | USD 2.1 bn | 6.6% |
| Hotel-hostel hybrids | 16.0% | 18.0% | USD 1.2 bn | 6.5% |
Top 25 countries for hostel by revenue
Countries are ranked by revenue earned from sales in the country, not by where the product is made. The ten largest hold 72.0% of 2026 revenue and the 25 countries below together hold 90.5%.
Source: Compare Market Research analysis.
© 2026 Compare Market Research. All rights reserved.
| # | Country | Value 2026 | Share 2026 | Value 2036 | CAGR 2026-36 |
|---|---|---|---|---|---|
| 1 | United States | USD 882 mn | 12.0% | USD 1.4 bn | 4.5% |
| 2 | Japan | USD 662 mn | 9.0% | USD 1.1 bn | 5.4% |
| 3 | Germany | USD 662 mn | 9.0% | USD 1.0 bn | 4.5% |
| 4 | Spain | USD 588 mn | 8.0% | USD 952 mn | 4.9% |
| 5 | United Kingdom | USD 588 mn | 8.0% | USD 915 mn | 4.5% |
| 6 | Italy | USD 514 mn | 7.0% | USD 830 mn | 4.9% |
| 7 | France | USD 368 mn | 5.0% | USD 574 mn | 4.5% |
| 8 | Australia | USD 368 mn | 5.0% | USD 598 mn | 5.0% |
| 9 | Thailand | USD 368 mn | 5.0% | USD 720 mn | 7.0% |
| 10 | Mexico | USD 294 mn | 4.0% | USD 525 mn | 6.0% |
| 11 | Canada | USD 171 mn | 2.3% | USD 298 mn | 5.7% |
| 12 | Portugal | USD 154 mn | 2.1% | USD 268 mn | 5.7% |
| 13 | Netherlands | USD 138 mn | 1.9% | USD 242 mn | 5.8% |
| 14 | Brazil | USD 125 mn | 1.7% | USD 217 mn | 5.7% |
| 15 | Vietnam | USD 112 mn | 1.5% | USD 209 mn | 6.4% |
| 16 | Indonesia | USD 101 mn | 1.4% | USD 188 mn | 6.4% |
| 17 | Argentina | USD 91 mn | 1.2% | USD 159 mn | 5.7% |
| 18 | Colombia | USD 82 mn | 1.1% | USD 143 mn | 5.8% |
| 19 | Czech Republic | USD 74 mn | 1.0% | USD 128 mn | 5.7% |
| 20 | Poland | USD 66 mn | 0.9% | USD 115 mn | 5.7% |
| 21 | Peru | USD 60 mn | 0.8% | USD 104 mn | 5.7% |
| 22 | South Korea | USD 54 mn | 0.7% | USD 94 mn | 5.8% |
| 23 | India | USD 49 mn | 0.7% | USD 90 mn | 6.4% |
| 24 | Philippines | USD 43 mn | 0.6% | USD 76 mn | 5.7% |
| 25 | Turkey | USD 39 mn | 0.5% | USD 68 mn | 5.8% |
| Rest of world | USD 700 mn | 9.5% | USD 1.2 bn | 5.3% |
Source: Compare Market Research analysis.
© 2026 Compare Market Research. All rights reserved.
Competitive landscape
Group 1: Global leaders
- Generator Hostels
- HI Hostelling International
- a&o Hostels
- Hostelworld Group
- YHA England and Wales
Group 2: Regional and specialist players
- Safestay
- Meininger Hotels
- St Christopher's Inns
- Selina
- Stayokay
- Deutsches Jugendherbergswerk
- Hostelling Scotland
- Zostel
Group 3: Emerging and niche players
- Mad Monkey Hostels
- Wombats City Hostels
- Lub d Group
- Hostel One
- Kex Hostel
Research methodology
Every figure on this page comes from the research framework that we apply to all of the markets we cover. The 2025 base for the hostel market is built from the volume sold and the price that buyers pay, and is cross-checked against the size of the wider industry the market belongs to. Where a market can be sized in more than one way, the routes are compared before a figure is set.
The forecast runs year by year from the 2025 base to 2036. Growth in each year reflects demand from the industries that buy the product, adoption of new technology, pricing, regulation and replacement cycles. Volume and price are modelled together, so revenue in each year equals volume multiplied by average price. The 2026 to 2036 compound annual growth rate of 5.2% is calculated from the resulting values.
The market is divided by room type, by booking channel, by hostel size, by traveller age, by ownership type. The 25 largest countries are ranked by revenue earned from sales to buyers in each country, not by where the product is made. Segment values and country values add up to the market total in every year, and every report is checked for consistency before it is published.
Companies are placed in three groups: global leaders, regional and specialist players, and emerging and niche players. The groups describe how companies compete in the market. They are not a ranking and they are not market shares.
Our analysts also carry out primary research. Customized reports add interviews with key opinion leaders, such as senior executives, technical specialists and buyers, to test the assumptions behind the numbers for the question being asked.
Frequently asked questions
How big is the hostel market?
The global hostel market is estimated at USD 7.0 bn in 2025 and USD 7.3 bn in 2026.
How fast will the hostel market grow?
It is forecast to reach USD 12.2 bn by 2036, a compound annual growth rate of 5.2% from 2026, an increase of USD 4.9 bn.
Which country is the largest market for hostel?
United States is the largest market by revenue at USD 882 mn in 2026, 12.0% of the global total. The three largest countries together hold 30.0%.
Which country is growing fastest?
Among the ten largest markets, Thailand is growing fastest at 7.0% a year from 2026 to 2036.
Which hostel segment is largest?
In the by room type split, Dormitory beds is the largest segment with 58.0% of 2026 revenue.
Who are the leading hostel companies?
Global leaders include Generator Hostels, HI Hostelling International, a&o Hostels, Hostelworld Group.
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