the youth hostel market | France

1.1 Presentation & definition

According to INSEE, a youth hostel is an establishment governed by a non-profit association. It provides users with accommodation and limited food service and/or individual cooking as well as other services, programs and activities. They are mainly intended for young people for educational and recreational purposes.

The conceptual and functional significance of youth hostels, however, has much older roots. In the Middle Ages, numerous structures were built to provide rest for pilgrims or travellers. In the 1900s, these accommodations, originally known for their hospitable character, underwent numerous transformations that brought them closer to the image they have today. The particularity of these accommodations is the sense of sharing: in general, hostels have common dormitories and common facilities.

Hostels are usually preceded by the word "youth", which reinforces the intrinsic connotation of being designed for young people, backpackers or travellers. Notable features include a common space and an affordable price. Although, since lifestyles and travel habits have changed dramatically over time, hostels have adapted to an ever-changing demand.

Globally, the market of youth hostels was estimated to grow at a CAGR (compound annual growth rate) of 6,8% between 2020 and 2023, before being heavily impacted by the Covid-19 pandemic, due to the drastic reduction of tourism and to the different lockdowns put in place by the government.

In Europe, hostels are now flourishing as alternatives to short-term rentals (e.g. Airbnb) or typical hotels, with many features such as private rooms, social events, extra facilities (e.g. swimming pool, café lounge), extravagant amenities. 

In France, the historical actors of the market are the non-profit associations that offer low-cost accommodation throughout France. However, more and more private actors have entered this promising market to create new concepts to seduce young travelers eager to meet and travel.