Cloudbeds report shows hostel bookings split by region

Cloudbeds has released its State of Hostels report for 2026, drawing on 32 million bookings across 180 countries.

The study examined hostel performance trends and traveller booking behaviour in 2025, finding a widening gap between accommodation types, regions, and booking channels. Occupancy rose for both private rooms and dorms, but room pricing moved in different directions as operators faced heavier competition and more price-sensitive demand.

Worldwide, private-room average daily rate held steady, while dorm average daily rate fell 8.2%. Occupancy increased 2.8% for private rooms and 2.6% for dorms, suggesting demand remained intact even as pricing pressure intensified in parts of the market.

This pattern was not consistent across regions. Asia Pacific was among the strongest-performing markets, with growth in both private rooms and dorms, while Latin America recorded rising occupancy alongside sharp rate compression.

Booking channels

A similar divide emerged in distribution. Online travel agencies accounted for 73.7% of hostel bookings globally, highlighting operators' growing reliance on intermediaries to maintain visibility and fill beds.

In several markets, intermediary dependence exceeded 80%. Cancellation rates also remained far higher for OTA bookings, which posted a global cancellation rate of 20.7%, compared with 9.2% for direct bookings.

The data points to a trade-off for hostel operators. Intermediaries continue to deliver volume, but they also leave properties more exposed to booking volatility and margin pressure, especially in a segment where lower-cost inventory such as dorm beds is already under pricing strain.

Booking windows showed little change. Travellers booked an average of 24 days in advance in 2025, unchanged from 2024, suggesting lead times have stabilised after the disruption of earlier years.

Operating pressures

The findings reflect a more fragmented hostel sector, where performance is increasingly shaped by property format, local market dynamics, and how operators manage their systems and sales mix. The report also points to rising operational complexity as businesses balance occupancy, rates, channel costs, and changing guest expectations.

"Hostels are operating in a far more fragmented and competitive market than just a few years ago," said Stephan Leuenberger, Head of Market Development, Hostels, at Cloudbeds.

"What the data shows is that operators who are connecting their systems, aligning their teams, and adapting to changing traveler behavior are putting themselves in a much stronger position to navigate the challenges ahead," Leuenberger said.

Alongside the performance data, the report outlined themes expected to shape the hostel market in 2026. These include tighter margins, the expansion of experience-led hostels, stronger demand from digital nomads and longer-stay guests, greater attention to sustainability in day-to-day operations, and wider use of artificial intelligence in discovery, booking, and operational workflows.

The study also highlighted demand for more unified technology across hostel businesses. Cloudbeds said operators are moving away from fragmented systems in favour of a more connected approach to managing accommodation, distribution, and guest activity.

Market context

The findings add to a broader picture of a travel sector that has recovered unevenly across segments. For hostels, resilient occupancy suggests continued traveller interest in lower-cost and social forms of accommodation, but falling dorm pricing indicates many operators are finding it harder to convert demand into stronger yields.

The gap between private rooms and dorms may also reflect a changing guest mix. Private rooms increasingly appeal to travellers seeking hostel settings without shared sleeping arrangements, while dorms remain more vulnerable to price competition and swings in budget demand.

At the same time, the high share of OTA bookings underlines the commercial challenge facing independent operators. Hostels often depend on third-party platforms for international reach, yet those channels can weaken direct customer relationships and increase exposure to cancellations and commission costs.

Cloudbeds is used by tens of thousands of properties in more than 150 countries. Founded in 2012, it provides management software to hotels and other accommodation businesses.

The report suggests occupancy alone provides an incomplete picture of hostel health, with rate performance, channel mix, and cancellation patterns playing a larger role in how operators perform across markets.