For those that are very eager to see the world but find themselves confined to a tighter budget, hostels are more likely a reality rather than a nightmare. The good news, however, is that hostels are going “posh” in many places bringing about modern and well-decorated, not to mention inexpensive places to stay.
Poshtels. Just like regular hostels, poshtels offer shared rooms or private rooms, and lucky for all travelers they seem to be popping up all over. As Business Insider reports, “At first glance it’s easy to think that poshtels would be geared specifically towards millennials traveling on a budget.” However, data from numerous sources cited in the Business Insider suggests that a decent amount of travelers are actually over the age of 30.
One of the more well-known poshtel is Generator Hostels, which claims to be the fastest growing brand in Europe. They plan to provide 12,500 beds and 15 different properties by the year 2018. Currently Generator Hostels can be found in, Barcelona, Berlin, Copenhagen, Dublin, Hamburg, London, Venice and Paris. The web site advertises that Rome and Amsterdam are “set to arrive” in 2016.
This leaves one to wonder, how do these businesses make money if they’re providing such a great atmosphere, as well as expertly designed space for such low rates? How have they basically taken a hotel experience and slapped the description “boutique hostel” on it and been able to keep it profitable?
Business Insider reports that the hostels make their money from the food and beverage sold as well as “merchandise” which could be anything from shampoo, soap or even locks to secure their items.
The concept of poshtels is not lost in America, currently one of the more well-known poshtel chains stateside is The Freehand which offers two locations, one in Miami and one in Chicago. For more information, the Lonely Planet gives readers a great look at six different poshtels around the globe.