News on the Development of US Hostels (Miami)

[Hostels]

An interesting article about hostels in South Beach, Miami:

Excerpt:

The idea [of hostelling] has always been more popular in Europe and Asia, where the beds are seen as a cheap rest stop. But hostels on South Beach focus on creating a sense of community by organizing trips to the Florida Keys or Fort Lauderdale, enjoying the Miami club scene without waiting in line, or by hosting Sunday beach parties on the sand.

And at $30 a night per person -- sometimes even as low as $16 -- the American hostel market is starting to come into play.

[...]

The hostelling industry in the U.S. generated $17.8 million for the 2007 fiscal year, which ended March 31, according to Hostelling International USA, a nonprofit hostel organization which oversees the largest network of hostels in the U.S.

But some hostels are not members of the organization, like many in Miami Beach, and there is no association that keeps track of any industry data.

Hotel experts note that the industry is going through a transformation, especially in South Florida, where discount hotels are now offering hostel room prices.

"Discount hotels are saying, 'I don't want to convert fully to a hostel because of the connotation that comes with that, but I want to provide hostel rooms,"' said Andrew Wharton, managing director for the accounting firm KPMG LLP, and is responsible for the real estate and hospitality practice in the Southeast.

Plus, older property owners in Miami Beach are realizing they may not have the cash flow to pump more money into renovating their buildings. So owners are looking at converting to a hostel as a way to "put more heads in beds and pack the square footage," he said.

Take a double-room that was once renting for $100 a night. When you put six people in that one room and charge $20 a night per person, you are increasing your revenue by 20 percent.

[Tim]

Originally Posted by Hostels

The hostelling industry in the U.S. generated $17.8 million for the 2007 fiscal year

Surely the hostelling industry in the United States made more than this.

In Australia the backpacking industry made $2.15 billion. OK, that's the whole industry including buses, bars, car rental companies and everything else catering to backpackers but I think it is reasonable to assume that hostels account for 20-25% of this. That's between $430 million and $537 million for a country with 7% of the population of the United States.

There is a lot for travellers to see in the USA - I think it has more to offer than Australia. Surely that figure of $17.5 million is a mistake.

[Hostels]

I think that figure is only for HI hostels. The figure leaves out most US hostels.

I don't think HI has any hostels in Miami anymore. The Clay Hotel used to be HI, but I don't see it in their system anymore.

[santa klaus]

Originally Posted by Hostels

I think that figure is only for HI hostels.

I doubt that. It must be a typo. We made € 6 million = $ 9.3 million last year with only three hostels.

[Hostels]

I wonder if the HI USA figure only includes their self-run hostels. There are something like 75 hostels in the US network, but just a few are operated directly by HI.

[Hostels]

UPDATE: this story was even picked up by mainstream USA Today.

It's good publicity for hostelling in the USA.