Thailand Hostel Business Projected to Grow 10% in 2016

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Thailand’s hostel sector is expected to grow 10% in 2016 due to an increase in solo travelers from overseas. Deputy dean at College of Management at Mahidol University Burim Otakanon stated that there will be new developments in several of Thailand’s major tourist hubs in 2016.

Despite safety concerns and other negative factors, tourism has remained a bright spot for the Thai economy, maintaining growth in 2015.

Currently, there are more than 2,000 hostels on the market, and they account for about 12% of all total accommodations. Bangkok alone is home to 400 hostels.

One of the main advantages of hostels is that they allow guests to save money while also offering more experiences.

A team of researchers at Mahidol are studying the hostel business, and are suggesting that new developers focus on five areas if they plan on opening hostels. These areas include customer experience, accommodation and services, location, customer needs and communication.

The cost of running a hostel is significantly lower than running a large hotel, and better accommodate solo travelers. According to a recent study conducted by Visa, solo travel has increased, accounting for 24% of all tourists in 2015. Individual travelers accounted for just 10% of travelers in 2014. The study also found that 64% of tourists between the ages of 18 and 30 preferred to stay in hostels rather than larger hotel chains.

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