Hotels, hostels or homestays abroad? From budget to safety, choose right

Business Standard

2 days ago

Planning a trip abroad and confused about where to stay? Between hotels, homestays, and hostels, the options can be overwhelming, especially if you're booking for the first time or looking to stretch your rupee without sacrificing comfort or safety. But what are Indian travellers choosing, and why?
Hotels still top the list—but not for everyone
For families and older travellers, hotels remain the preferred choice, according to Karan Agarwal, director at Cox & Kings.
'Hotels continue to be the top accommodation preference, particularly for Indian families and older travellers going abroad,' he said. 'They offer predictability, privacy, and comfort—factors that are still very important for this segment.'
However, Agarwal noted a clear shift post-Covid. 'Younger travellers are seeking more than just a bed. They want experiences, cultural immersion, and connection. That's where hostels and homestays come in.'
Hostels: From budget bunk beds to boutique experiences
Agarwal said many Indian Gen Z and millennial travellers are intentionally booking hostels—not just to save money, but to find community.
'Today's hostels come with rooftop cafes, podcast rooms, and themed events. They're not just accommodation—they're social ecosystems,' he said. 'Even in cities like Berlin or Amsterdam, where top-rated hostels may cost as much as a budget hotel, travellers still prefer them for the vibe.'
This trend, he added, isn't limited to international trips. Domestic players are also entering the co-living and boutique hostel space in India.
Pranav Dangi, founder of The Hosteller, said hostels offer something many travellers crave today: flexibility and shared experiences.
'They're perfect for solo trips, digital nomads, and spontaneous getaways,' said Dangi. 'We see strong growth from the 18–35 segment, but even 35+ travellers are starting to explore social yet affordable options.'
He pegged the year-on-year demand growth at 30–40 per cent, driven by budget-conscious youth and remote workers looking for community over luxury.
In between the formality of hotels and the social buzz of hostels, homestays offer a more personal touch—often with access to kitchens, local hosts, and home-like comforts.
'Homestays are a great middle ground,' said Agarwal. 'They're often used by small families or couples who want a more intimate setting without losing the convenience of being well-located.'
Many also offer weekly housekeeping and access to local tips, though travellers are advised to check amenities and policies carefully.
What's it going to cost?
Accommodation costs vary by country, season, and how early you book. Here's a rough guide for major international cities:
Hotels: ₹8,400–₹21,000 per night (mid-range)
Homestays: ₹4,200–₹10,000 per night
Hostels: ₹1,700–₹5,000 per night
In cheaper destinations like Eastern Europe or Southeast Asia, these rates drop substantially.
Across categories, hostels tend to be 40–60 per cent cheaper than even basic hotels, according to Dangi. But peak travel seasons can drive prices up by 30–60 per cent for hotels and 20–40 per cent for homestays.
'Hostels are a bit more consistent, but even they get pricier when demand spikes,' said Agarwal. 'We often recommend shoulder seasons to save money.'
What's included, and what's not
Hotels: Daily housekeeping, 24/7 reception, in-house laundry, and optional breakfast.
Homestays: Kitchen access, basic laundry, occasional housekeeping, sometimes breakfast.
Hostels: Shared kitchen, self-service laundry, limited cleaning, minimal reception.
'Wi-Fi is fairly standard now, but always check reviews and the fine print,' said Agarwal. 'Cleaning fees, city taxes, or breakfast charges are often missed by first-time travellers.'
What about safety and scams?
Safety can vary depending on region, property, and how you book. Agarwal warned about staying in unlicensed homestays in cities like Barcelona or Amsterdam, where local authorities have cracked down on illegal short-term rentals.
'In less regulated areas of Eastern Europe, South America or Southeast Asia, we've seen verification issues with hosts and listings,' he said.
For solo female travellers, Agarwal suggested hostels or shared accommodations with verified reviews and high safety ratings. 'Always use trusted platforms,' he said.
Timing matters
Booking well in advance can save you money and stress.
Hotels: 2–3 months in advance for international cities
Homestays: 1–2 months ahead
Hostels: Flexible, but avoid last-minute bookings in peak seasons
'We advise planning at least a quarter ahead for long-haul or multi-country trips,' said Agarwal.
Indians going global—and hostel brands going with them
Indian hostel chains are now expanding abroad. Zostel, for instance, recently opened its first international outpost in Berlin.
'There's strong demand for our brand of social, community-driven travel,' said Dharamveer Singh Chouhan, CEO and co-founder at Zostel. 'Our identity—bold design, social media presence, curated experiences—translates well across borders.'
He said their hostels are growing 20–22 per cent every six months, with international expansion a natural next step.
Dangi agreed. 'There's definitely room for Indian hostel brands abroad, especially those with strong storytelling and cultural relevance,' he said.
What the latest data says
According to the 'India Holiday Report 2025' by Thomas Cook India and SOTC Travel:
< Over 30 million Indians travelled abroad in 2024—a record high
< 85 per cent of respondents now plan four to six trips a year
< 84 per cent say they'll increase travel spending by 20–50 per cent this year
As Indians travel more and spend more, the accommodation they choose is becoming less about convenience and more about the kind of experience they want to take back with them.