The hostel sector is set to grow across Europe, as the sharing economy takes hold, according to a new report from hotel consultancy firm HVS.
Research on the limited service and hybrid hotel sector showed consumers increasingly value experience over formality and are influenced by social media when making accommodation decisions.
The Budget Hotel Sector's Position in the Sharing Economy report was published to coincide with the second Hostel & Budget Traveller conference, which took place in London on 16-17 November.
According to the findings from HVS, the biggest users of budget accommodation are accustomed to booking through their smartphones, either direct or through online travel agents (OTAs).
The global budget and hostel sectors are expected to continue to grow, along with the fast emerging commercialised private rental market, which includes sites such as Airbnb.
HVS said the sector was starting to shape part of a sharing economy where consumers value ‘access to' rather than ‘ownership of' goods and services.
Report author Harry Douglass, said: "There are now signs that rather than consolidating the larger hotel groups' positions, the proliferation of OTAs is fragmenting the market, which may benefit smaller operators who can crowd together.
The budget and hostel sector has grown from about 8% of the market share in 2008 to 10% in 2014, based on research across eight European countries. This share is forecast to increase to around 12% by 2017, particularly as the sector gains recognition in new and emerging markets.