Rising hostel prices this summer in Europe are making budget travel out of reach for young Australians wanting to go on a backpacking trip.
Keiarna Brooks has traveled across New Zealand, Canada and the United States over the past 18 months and noticed how accommodation prices have soared.
The 20-year-old from the Sunshine Coast was planning to travel to Europe in August and was shocked by the high price of hostel dorms.
“It’s definitely a barrier, and it’s exploded since COVID,” she said.
“I booked Vienna for two nights for two people, and it cost 128 euros ($213),” she said.
“It’s crazy…three nights in Amsterdam costs like $200, and here it’s in a four-bed mixed dorm.”
Rachel Davey, who has backpacked 195 countries, documents her travels with her partner Marty as part of their blog the Very hungry nomads.
She noticed how different the costs of a European summer have become.
“I find it sad that it has become more expensive for young people to travel,” she said.
“Necessary” price increases, according to hostel staff
Between April 2023 and April 2024, almost 10 million residents returned to Australia from overseas, an increase of more than 4.7 million from the previous year, according to the Australian Bureau of Statistics (ABS).
Fifty-seven per cent of people who traveled did so for a holiday, with 1.57 million Australians going overseas last month.
Despite the massive return of tourists over the past two years, hostel managers across Europe say rising accommodation prices were necessary to recover from the pandemic.
Macarena Herrero Romero, who runs hostels in Madrid, Brussels and Bilbao, said inflation had caused a massive increase in daily operating costs.
“The increase in the price of utilities (post-pandemic) has been enormous,” she said.
“Electricity, water and our laundry service have all increased their prices.
“We try really hard not to raise our prices, but it was crazy last year.”
Hayden Alexander, who runs a hostel in London, said electricity was certainly a factor in increasing the cost of a bed.
“We saw that average price slowly increase during these peak seasons,” he said.
“You see, bed rates are increasing much more than before.
“(You're looking at) probably about a 20 percent increase for a standard dorm bed.”
Even mixed dorms for up to 20 people, which are usually the cheapest option, currently cost an average of £30 to £56 ($57 to $110) per night in July.
The price increase is also due to hostel guests expecting more than a bed from their stay, Venice Hostel manager Gianluca De Vit said.
Many now offer private rooms, modern designs, free events and a choice between mixed dorms and a smaller number of beds in dorms that vary in price, to compete with other providers.
“You have to have events for free for your guests, but you have to somehow make that money back, maybe in lodging,” he said.
“So of course they will attend the event, but maybe even pay three, four, five euros more for accommodation.”
Mr Alexander said the private rooms at his London hostel are designed to compete with lower-cost budget hotels, which is reflected in the price.
As a result, young backpackers aren't the only travelers attracted to this style of accommodation.
“Flashpackers” are changing the face of hostels
Ms Davey agrees that hostel customers are no longer just young people on a budget.
High demand means flashpackers, who travel like backpackers but have more money to spend, will pay higher prices for rooms in hostels.
“After COVID, I think we missed a few years, (so now) everyone is traveling again and there's not enough accommodation – and the hostels are usually in a great location.
“So maybe they raise prices because the demand is there, because they can ask for this and will get it.”
Ms Brooks travels to Europe while she can, as she believes it will become less popular in the coming years.
She added that there are other parts of the world where it is still cheap to hike.
“You can travel to Asia on $6,000 if you’re smart,” she said.
“How far would this go in Europe?”
Cheaper alternatives
Last year, Skyscanner, based on consumer research, revealed that 42% of Australians believe the cost of flights to a destination is the most important factor in deciding where they will go.
Search volumes to China, Japan and Thailand, which are closer to us, have therefore increased significantly.
Miss Davey agrees that there are still other options for cheaper travel for young people.
“You can put your money to work further afield, like in Southeast Asia and Latin America,” she said.
But if young people want to experience a European summer, she thinks they can still find a way.
“(It's worth looking into) other cities in popular countries, for example in Greece, instead of Corfu and Santorini there are smaller islands where you can find a cheaper room or dorm ” she said.
Mr Alexander said forward planning and “shoulder seasons” – the months either side of the summer season, which is usually between May and August – would also help travelers save.
Connections and security are worth it
Although she may still re-evaluate the timing of her future trips, Miss Brooks said the hostel experience remains an essential part of her trip.
“It’s expensive, but we go to meet people and for the connection,” she says.
“As a solo traveler, it’s also for safety…being with other people.”
Ms Davey agrees that homes remain a great way for young people to learn and gain confidence.
“I think budget travel is still doable, depending on where you go, and I always encourage young people to do it,” she said.
