HOSTEL MARKETPLACE

Despite being one of the most expensive countries in the world, hostel development in the U.S. has yet to take hold. Creative design and changing guest expectations make the U.S. a prime market for Alchemist's upscale hostel concept.  

Revenue: $935 m

Supply: 27% 

Revenue: $620 m

Supply: 22%

Revenue: $492 m 

Supply: 3%

Revenue: $429 m

Supply: 4%

U.S. & Canada

L. America & Caribbean

Australia & N. Zealand

Asia

Middle East & Africa

Revenue: $101 m

Supply: 4%

Europe

Revenue: $2,679 m

Supply: 40%

U.S. LEISURE DEMAND

Travel preferences have changed but traditional branded accommodations are poorly designed and managed to meet the needs of today's leisure traveler. Gen Z is just beginning to graduate from college and seeking unique, affordable adventures heavily marketed on blogs, podcasts, and social media. However, the affordable options available in Europe and Asia are not readily available in the U.S...well,..not yet.

Existing U.S.-Canada Hostel Revenue 

$492 Million

U.S. Hostel Revenue Potential 

$4.5 Billion

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Phocuswright: The Global Hostel Marketplace 2016-2020

Age Mix of Hostel Guests​...

Age 18 - 34

63%

Age >35

28%

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Phocuswright: The Global Hostel Marketplace 2016-2020

Gen Z Top Travel Activities

  1. Eating Out

  2. Visiting Museums

  3. Outdoor Adventures

  4. Tours and Excursions

  5. Sightseeing

  6. Partying

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UNiDAYS and Ad Age

% Gen Z Influenced by
Social Media

90%

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Expedia and The Center for Generational Kinetics

U.S. Leisure Travel Spending 

$761.7 Billion

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U.S. Travel Association

American % Solo Travel

+33%

Millennial % Solo Travel

42%

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Expedia and The Center for Generational Kinetics

I Look For The Best Deals​...

% of Gen Z

93%

% of Millennials

92%

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Expedia and The Center for Generational Kinetics

Gen Z Preferred Vacation

36% - Beach

31% - City

22% - Outdoor Adventures

11% - Luxury Getaway

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UNiDAYS and Ad Age

Allocation of Travel Budget

25% - Food & Beverage

21% - Lodging

10% - Recreation & Activities

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U.S. Travel Association

"Middle Income travelers place a priority on sightseeing or tourism. Gen Z travelers value adventure experiences."

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Expedia and The Center for Generational Kinetics

Gen Z Spending Power

$143.0 Billion

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UNiDAYS and Ad Age

% Gen Z Prefer Affordable Travel 

69%

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UNiDAYS and Ad Age