Hostel market in Romania valued at EUR 1.4 mil.

Hostels, defined as the low-cost alternative of hotels, mainly destined to youth, become a more and more competitive market worldwide, of over EUR 8 bn. annually. In Romania, however, the niche is in its early period, but there are a couple of dozen hostels on the market.

At the beginning of this year, Romania had 44 hostels. Most of them are located in cities with tourism tradition.

In 2008, the value of the local hostel market reached approximately EUR 1.2-1.4 mil. The number of overnight stays in hostels was 120,000.

Ildiko Matyas, president of Youth Hostel Romania (YHR), the association of hostels in Romania, stated that tariffs are similar to those applied abroad. Tariffs vary from one location to another according to room type and services, from EUR 8 to 16 per night.

Ildiko Matyas stated that the standards of the Ministry of Tourism for Romanian hostels are more rigorous than those of the International Federation of Youth Hostels, from many points of view.

YHR representative considers that the hostel market in Romania could turn into a long term profitable business under crisis period for those dreaming of developing a business related to their passion for tourism. Thus, excepting the tourists leaving on tour of Europe or Romania, hostel owners can benefit from the business segment also, as traveling budgets of companies are lower at present.

The average length of stay of tourists in hostels in Romania is 1.5-1.8 nights, while the average age of those choosing this type of accommodation is 23 years old. In case of hostels for foreign tourists, the average age goes up to 29-30 years old.

Sursa: Wall-Street [04.05.2009]