Design-led hostels across the UK – known as “poshtels” are proving popular with British travellers and value-driven overseas holidaymakers, reveals the WTM Global Trends Report 2014, in association with Euromonitor International, released today (Monday 3 November) at World Travel Market.
“Poshtels” embrace modern and luxurious design with high-tech facilities, offering restaurants, twin en-suite rooms, free Wi-Fi and breakfast. They are popular across all demographics and appeal to leisure and business travellers alike, the report reveals.
Leading brands include Clink, St Christopher’s Inn-Village, Safestay, The Dictionary and Generator Hostels.
However, budget and mid-range hotel chains have seen the shift and are rethinking not only their design but also their pricing and distribution in response to the rise of the poshtel.
The WTM Global Trends Report 2014 says the hostels segment in the UK is set to record growth of 3% over 2013-2018 to reach sales of £216 million in 2018, with a total of 653 hostel outlets by the end of the same year.
The report quotes Generator Hostels Executive Chairman Carl Michel. “The term ‘poshtel’ identifies the lifestyle hostels that have sprung up, as distinct from the more basic hostels. It highlights the desire to have a more differentiated offering – it’s not about being the absolute cheapest anymore.”
VisitEngland highlights the segment as a growing market niche. Generation Y – those born between 1981 and 1990 and who embrace mobile technology and favour designer brands – represent a key potential consumer segment. Trading with Bitcoins and accepting digital wallets for payment are ways that poshtels can diversify their client base and help them compete with the OTA channel.
World Travel Market, Senior Director, Simon Press said: “Poshtels are more than a buzzword. They represent a viable accommodation option for a number of traveller segments and are helping to raise standards across the entire UK hospitality sector.”
Euromonitor International, Head of Travel and Tourism, Caroline Bremner said: “Hostels identified that consumption patterns shifted after the global economic crisis, changed quickly and are now seeing impressive growth. Travel brands that combine high design with value for money continue to appeal to British visitors.”
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