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As Airbnb falters, hostels seek to compete

Airbnb may have met its match

By SALLY FRENCH of NerdWallet
Published - Nov 29, 2023, 07:03 AM ET
Last Updated - Dec 21, 2023, 12:04 PM EST

Once a niche market for frugal, globetrotting young people, hostels are becoming a popular form of alternative lodging. No longer just rows of bunk beds, some hostels now offer private rooms and amenities like rooftop pools and spas.

Take the Selina Boquete hostel in Panama. Guests are served an evening welcome drink. While there’s a shared option called a community room, the hostel offers hotel-style private rooms and the unique option of a pod-style room made from an “upcycled” concrete cylinder. Some nights, guests are treated to live music.

“It honestly felt like a resort and was a better experience than an Airbnb,” says Melissa Middlestadt, a Canadian travel blogger who runs the website My Beautiful Passport, about her stay at Selina Boquete. “It was quiet, which is what I look for in an Airbnb, but it had more amenities and was in a better location.”

The private room she booked at the hostel was $50 to $100 cheaper per night than what she would have paid for an Airbnb nearby, she says.

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