Why Hostels Are Struggling to Adapt The rise of budget travel in the 1990s and early 2000s was largely driven by the proliferation of hostels, which offered affordable accommodations for travelers on tight budgets.
At that time, many city centers were dominated by expensive hotels catering to a more affluent clientele, leaving few alternatives for budget conscious travelers.
Hostels filled this void with basic rooms at rock bottom prices. As cities began to gentrify, hostels became increasingly popular as affordable options near city centers.