The Hosteller: Hostel Dominance in India’s Youth Travel
Pranav Dangi discussing travel plans with young Indian travelers in a Hosteller common room.
Key Highlights
The Hosteller predicts hostels will dominate young Indian travel within five years. Standardization and accessibility drive this shift. Learn about their expansion plans.
The Hosteller, a backpacker hostel chain in India, is working to standardize its operations and facilities across all properties. According to Founder and CEO Pranav Dangi, this effort aims to establish The Hosteller as a reliable and stress-free option for travelers. Dangi believes that backpacker hostels will become the preferred choice for young Indian travelers in the next five years.
The company recently secured Rs 150 crore in funding to support its expansion throughout India. Dangi’s vision is rooted in his experiences as a management student in Europe, where he frequently stayed in backpacker hostels due to budget constraints.
Dangi explained that in 2013, while on an exchange program, he spent months exploring Europe. As a student with limited funds, he found hotels too expensive. This led him to discover backpacker hostels, which he found appealing.
Inspired by his experiences abroad, Dangi sought to introduce the backpacker hostel concept to India. He observed that Indian travel primarily revolved around family vacations or business trips, with limited interaction among hotel guests. The Hosteller was founded to create a more communal and affordable travel experience.
The Hosteller began with a single hostel in Jaipur in late 2014. Over the past 12 years, the chain has grown to include 75 properties across 50 destinations, serving 2.5 million travelers. These locations range from Tier I to Tier III cities, as well as more unconventional destinations.
The Hosteller is focused on standardizing its operations and facilities to ensure consistent quality across all locations, whether in Munnar, Manali, or Leh. Dangi believes that the backpacker hostel category will mature significantly in the next 5 to 10 years, attracting a growing number of travelers.
Dangi noted that backpacker hostels are a key part of the alternative accommodation sector, which includes villas, B&Bs, and homestays. Currently, there are approximately 2,000 hostels in India, spread across 80 to 90 cities. This number is expected to increase substantially in the next three to five years.
The company aims to establish a pan-India presence with 200 to 250 properties and 25,000 beds within the next three years.
Dangi addressed initial perceptions about hostels, particularly regarding cleanliness and safety. He emphasized that The Hosteller prioritizes cleanliness and hygiene by maintaining adequate staffing levels and implementing standard operating procedures. The company also uses technology for virtual audits and maintenance checks. Additionally, safety measures include SOS buttons in bunk beds, comprehensive CCTV coverage monitored from the head office, and female staff members at most locations.
In response to changing customer needs, The Hosteller has introduced workation and co-living options, expanded its geographic presence, and increased the size of its properties. The company is also developing a travel super app to enhance itinerary planning and social interaction among guests.
Looking ahead, The Hosteller plans to add 5,000 to 6,000 beds in the next year and aims for an in six to seven years. International expansion is planned for early 2028, with entries into Nepal, Sri Lanka, and Southeast Asia.
Dangi identified key trends in the travel industry, including a growing emphasis on work-life balance, a rise in independent travel, and a preference for direct bookings. He remains optimistic about the future of the industry, anticipating further growth and development.