The independent hostel industry is growing rapidly in many cities around the world, such as New York, Rome, and Miami[4]. This is reflected in the development and expansion of dozens of hostel chains worldwide[5]. The recent eruption in independent hostels has been called, "the single biggest news in the world of low-cost travel"[6].
The development of independent backpackers hostels is a strong business model, with some cities reporting a higher average income per room for hostels than hotels. For example, in the city of Honolulu, Hawaii, upscale hotels are reportedly making $141 to $173 per room, while hostel rooms in the same city can bring in as much as $200 per night[7].
Though in the past, hostels have been seen as low-quality accommodation for less desirable travellers, at least one Australian study has shown that backpackers (who typically stay at hostels) spend more than non-backpackers due to their longer length of stays[8]. Self-described backpackers make up as much as 10% of international visitors in countries like Australia[9].
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