Current Hostel Market in America
The current hostel market in America is limited to owner-operated properties, youth hostels, and not-for-profit hostels. Traditionally, the youth hostel represented an inexpensive, basic accommodation provided to enable people less than 18 years of age to travel in groups to rural or countryside destinations. Youth hostels and owner-operated hostels comprise dormitory rooms with between four and six beds and do not include private rooms or twin/double rooms.
While American travelers may readily stay in hostels in Europe, the default option when traveling within America is to stay at a motel or a budget hotel. Mr. Jesper Arnoldsson recognizes that meeting, socializing, and sharing experiences with new people propels the hostel culture in Europe. This culture, he says, has to be fostered by hostel developments in the U.S. that include communal spaces and provide a vibrant social atmosphere for guests. Currently, there are no high-end boutique hostels in America (with the exception of Freehand, featured below) and the lower-end U.S. hostels do not have such socially charged communal spaces.
Some elements of the European model, however, simply aren’t replicated in America. The long distances between major U.S. cities and the lack of efficient, inexpensive public transportation options (such as the Euro Rail) create a scarcity in the backpacking demographic—a cornerstone of hostel demand.