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Hostel Market Size, Share and Forecast 2026-2036

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.

USD 7.3 bnMarket size 2026
USD 12.2 bnForecast 2036
5.2%CAGR 2026-2036
United StatesLargest country

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5 segmentation views25 countries2026 to 2036 yearly forecast

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.

ScopeRevenue of hostels and budget shared-room lodging from dormitory beds, private rooms, food and activities, sold mainly to backpackers and young travellers.
IndustryTravel and Tourism
Value 2025USD 7.0 bn
Value 2026USD 7.3 bn
Value 2036USD 12.2 bn
CAGR 2026-20365.2%
Volume 2026287 million bed nights
Volume 2036372 million bed nights
Average price 2026USD 25.6 per bed night
Report priceStarts from USD 1,999
PublishedNovember 2026

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Hostel market size and forecast, 2026-2036

Exhibit 1The global hostel market is forecast to grow from USD 7.3 bn in 2026 to USD 12.2 bn by 2036, a rise of 66%Global market value in USD: 2025 base year, 2026 estimate and forecast to 2036. CAGR 2026 to 2036: 5.2%
Hostel market value, 2025 to 2036Market value by year. 2025: USD 7.0 bn; 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. Compound annual growth rate 2026 to 2036: 5.2%.20257.3 bn20269.5 bn203112.2 bn20365.2% CAGR

Source: Compare Market Research analysis.
© 2026 Compare Market Research. All rights reserved.

YearMarket value
2026USD 7.3 bn
2027USD 7.7 bn
2028USD 8.1 bn
2029USD 8.6 bn
2030USD 9.0 bn
2031USD 9.5 bn
2032USD 10.0 bn
2033USD 10.5 bn
2034USD 11.0 bn
2035USD 11.6 bn
2036USD 12.2 bn

Hostel market segmentation

By room type

Exhibit 2Dormitory beds is the largest segment by room type, with 58.0% of 2026 revenueEstimated share of 2026 global revenue, by room type
Hostel market share by room type, 2026Share of 2026 revenue by room type. Dormitory beds: 58.0%; Private rooms: 34.0%; Capsule and pod beds: 8.0%.Dormitory beds58.0%Private rooms34.0%Capsule and pod beds8.0%

Source: Compare Market Research analysis.
© 2026 Compare Market Research. All rights reserved.

SegmentShare 2026Share 2036Value 2026CAGR 2026-36
Dormitory beds58.0%54.5%USD 4.3 bn4.5%
Private rooms34.0%35.1%USD 2.5 bn5.5%
Capsule and pod beds8.0%10.4%USD 588 mn8.0%

By booking channel

Exhibit 3Online travel platforms adds the most revenue by booking channel, growing from USD 4.6 bn in 2026 to USD 8.1 bn by 2036Estimated revenue in USD by booking channel, 2026 and 2036 forecast
Hostel market by booking channel, 2026 and 2036Revenue by booking channel in 2026 and 2036. Online travel platforms: USD 4.6 bn in 2026, USD 8.1 bn in 2036, change +78%; Direct bookings: USD 2.2 bn in 2026, USD 3.3 bn in 2036, change +47%; Groups and travel agents: USD 588 mn in 2026, USD 826 mn in 2036, change +40%.20262036 forecastChangeOnline travel platforms+78%4.6 bn8.1 bnDirect bookings+47%2.2 bn3.3 bnGroups and travel agents+40%588 mn826 mn

Source: Compare Market Research analysis.
© 2026 Compare Market Research. All rights reserved.

SegmentShare 2026Share 2036Value 2026CAGR 2026-36
Online travel platforms62.0%66.6%USD 4.6 bn6.0%
Direct bookings30.0%26.6%USD 2.2 bn4.0%
Groups and travel agents8.0%6.8%USD 588 mn3.5%

By hostel size

SegmentShare 2026Share 2036Value 2026CAGR 2026-36
Under 30 beds30.0%28.0%USD 2.2 bn4.5%
30 to 100 beds46.0%44.0%USD 3.4 bn4.7%
Over 100 beds24.0%28.0%USD 1.8 bn6.8%

By traveller age

SegmentShare 2026Share 2036Value 2026CAGR 2026-36
Under 2540.0%36.0%USD 2.9 bn4.1%
25 to 3438.0%38.0%USD 2.8 bn5.2%
35 and over22.0%26.0%USD 1.6 bn7.0%

By ownership type

SegmentShare 2026Share 2036Value 2026CAGR 2026-36
Independent hostels56.0%50.0%USD 4.1 bn4.0%
Hostel chains28.0%32.0%USD 2.1 bn6.6%
Hotel-hostel hybrids16.0%18.0%USD 1.2 bn6.5%

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%.

Exhibit 4United States is the largest country market at USD 882 mn in 2026, and the three largest countries hold 30.0% of global revenueEstimated 2026 revenue in USD and share of the global market, ten largest countries
Hostel market, ten largest countries in 2026Ten largest countries by 2026 revenue. United States: USD 882 mn, 12.0%; Japan: USD 662 mn, 9.0%; Germany: USD 662 mn, 9.0%; Spain: USD 588 mn, 8.0%; United Kingdom: USD 588 mn, 8.0%; Italy: USD 514 mn, 7.0%; France: USD 368 mn, 5.0%; Australia: USD 368 mn, 5.0%; Thailand: USD 368 mn, 5.0%; Mexico: USD 294 mn, 4.0%.United States882 mn 12.0%Japan662 mn 9.0%Germany662 mn 9.0%Spain588 mn 8.0%United Kingdom588 mn 8.0%Italy514 mn 7.0%France368 mn 5.0%Australia368 mn 5.0%Thailand368 mn 5.0%Mexico294 mn 4.0%

Source: Compare Market Research analysis.
© 2026 Compare Market Research. All rights reserved.

#CountryValue 2026Share 2026Value 2036CAGR 2026-36
1United StatesUSD 882 mn12.0%USD 1.4 bn4.5%
2JapanUSD 662 mn9.0%USD 1.1 bn5.4%
3GermanyUSD 662 mn9.0%USD 1.0 bn4.5%
4SpainUSD 588 mn8.0%USD 952 mn4.9%
5United KingdomUSD 588 mn8.0%USD 915 mn4.5%
6ItalyUSD 514 mn7.0%USD 830 mn4.9%
7FranceUSD 368 mn5.0%USD 574 mn4.5%
8AustraliaUSD 368 mn5.0%USD 598 mn5.0%
9ThailandUSD 368 mn5.0%USD 720 mn7.0%
10MexicoUSD 294 mn4.0%USD 525 mn6.0%
11CanadaUSD 171 mn2.3%USD 298 mn5.7%
12PortugalUSD 154 mn2.1%USD 268 mn5.7%
13NetherlandsUSD 138 mn1.9%USD 242 mn5.8%
14BrazilUSD 125 mn1.7%USD 217 mn5.7%
15VietnamUSD 112 mn1.5%USD 209 mn6.4%
16IndonesiaUSD 101 mn1.4%USD 188 mn6.4%
17ArgentinaUSD 91 mn1.2%USD 159 mn5.7%
18ColombiaUSD 82 mn1.1%USD 143 mn5.8%
19Czech RepublicUSD 74 mn1.0%USD 128 mn5.7%
20PolandUSD 66 mn0.9%USD 115 mn5.7%
21PeruUSD 60 mn0.8%USD 104 mn5.7%
22South KoreaUSD 54 mn0.7%USD 94 mn5.8%
23IndiaUSD 49 mn0.7%USD 90 mn6.4%
24PhilippinesUSD 43 mn0.6%USD 76 mn5.7%
25TurkeyUSD 39 mn0.5%USD 68 mn5.8%
Rest of worldUSD 700 mn9.5%USD 1.2 bn5.3%
Exhibit 5United States and Japan account for 19% of the USD 4.9 bn the market is forecast to add by 2036Forecast revenue added between 2026 and 2036 by country, in USD
Hostel market, where the growth to 2036 comes fromRevenue added between 2026 and 2036. Market value 2026: USD 7.3 bn. United States: +USD 485 mn; Japan: +USD 461 mn; Spain: +USD 364 mn; Germany: +USD 364 mn; Thailand: +USD 352 mn; 20 other countries: +USD 2.3 bn; Rest of world: +USD 477 mn. Market value 2036: USD 12.2 bn.Market value 20267.3 bnUnited States+485 mnJapan+461 mnSpain+364 mnGermany+364 mnThailand+352 mn20 other countries+2.3 bnRest of world+477 mnMarket value 203612.2 bn

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.

Read the full research methodology

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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