Himalayas to Berlin: Indian hostel brands go global for budget travellers

Business Standard

15 hours ago

Hostels or a luxury hotel? Well, it all depends on your preference and, more importantly, budget. A growing number of young Indian travellers are now fulfilling their dream of travelling abroad by piecing together cost-conscious itineraries. That shift has triggered a clear trend: camps and hostels are in, not just within India, but in international destinations too.
Seizing the moment, Indian hostel brands are now setting up shop beyond domestic borders, from Bir to Berlin, bringing their community-driven backpacker model to a global audience.
'At the heart of their success is a community-first approach. Take Zostel, for instance: there's a strong emphasis on crafting social experiences through shared spaces, curated activities, and a vibrant traveller community. This model is now being replicated internationally to appeal to like-minded global travellers,' said Dharamveer Singh Chouhan, CEO and co-founder at Zostel and Zo World.
He added that their identity travels well. 'Their youth-friendly brand identity, shaped by social media-savvy communication, bold design, and culture-driven storytelling, makes these hostels instantly relatable across borders.' According to Chouhan, the average growth this year is up by 20–22 per cent for hostels when comparing six-month periods.
Recently, Zostel, an Indian chain of backpacker hostels, marched into its first international location in Berlin. The Berlin hostel, which is part of its broader strategy to become a global brand, aims to offer curated travel experiences and community-focused stays, aligning with the evolving preferences of modern travelers.
Affordability, flexibility, and a social vibe top the list. According to Pranav Dangi, CEO and founder of The Hosteller, 'Hostels offer immersive travel that hotels don't—ideal for solo trips, digital nomads, and spontaneous getaways.'
Dangi said the primary age group is between 18 and 35. 'Students, young professionals, and digital nomads dominate, but we're also seeing a rise in 35+ travellers looking for social yet affordable options,' he added.
Demand is clearly growing. 'The percentage rise is around 30–40 per cent year-on-year, driven by budget travel, remote work, and a growing preference for experiences over luxury,' said Dangi.
Zostel's Berlin launch, he said, proves that there is space abroad for Indian hostel brands. 'Focus on niche storytelling, cultural relevance, and community engagement from day one,' he said.
According to Dangi, hostels tend to be 40–60 per cent cheaper than basic hotels. 'They blend affordability with vibrant design, cultural storytelling, and a strong youth vibe,' he said.
Why hostels appeal to Indians
• Budget-friendly, clean, and well-maintained accommodation
• Strong focus on community and social interaction
• Greater freedom and flexible schedules compared to hotels
• Curated local experiences like food walks, city tours, and cultural events
• Co-working spaces and remote work-friendly infrastructure
• Instagram-friendly aesthetics and themed interiors
• Safety features such as female-only dorms and CCTV
'Ultimately, hostels offer more than just a place to sleep. They create a sense of belonging. For Indian travellers who seek openness, meaningful conversations, and spontaneous friendships,' said Chouhan.
Expansion plans and strategy
Indian hostel brands are carefully choosing their next markets—often prioritising destinations with a high number of Indian tourists or diaspora, which helps in building brand familiarity.
'A strong digital backbone, from app-based bookings to targeted social media marketing, enables leaner, more cost-effective international growth,' said Chouhan.
To scale sustainably, many brands are using franchise or local collaboration models. These help them enter new markets without large upfront investments, while staying adaptable to local preferences and regulations.
'Having already dealt with the complexity and diversity of India has made us more agile. It's a real advantage when stepping into international markets,' Chouhan added.
Where to next?
The Hosteller is eyeing expansion across Asia, Eastern Europe, and well-known digital nomad hotspots—places with a solid backpacker culture and rising interest in Indian tourism.
This growth coincides with a wave of first-time Indian travellers heading overseas. According to visa application platform Atlys, international visa requests from first-time applicants rose by 32 per cent over the past year. Of these, 56 per cent came from Tier 2 and Tier 3 cities such as Chandigarh, Surat, Pune, Lucknow, and Jaipur.
And it's not just one source. In May, Thomas Cook India and SOTC Travel released their 'India Holiday Report 2025', showing how travel aspirations are changing fast.
Key findings from the report:
• Over 30 million Indians travelled abroad in 2024, the highest ever
• 85 per cent of respondents plan to take four-six holidays annually, up from two-three
• 84 per cent expect to increase their travel spending by 20 per cent to 50 per cent this year
'The survey reflects a shift driven by rising disposable incomes and the growing aspirational value of travel, including experiential holidays,' the report said.