The hostel industry is far from being known as fast adapters to new technologies; however, one thing is true: those hostels that are adapting have a substantial advantage over those that aren't. There has been much attention not only on using technology to attract guests but now the focus has also shifted to communicating with guests while they are staying at your property. Below, Michael Norton and Mia Grosen of Comundu will take you deeper into this new trend.

A digital revolution in the hostel industry?

Tech in the hostel industry is not very diverse, being heavily dominated by a few OTAs (Online Travel Agencies) and a large number of Property Management Systems (PMSs). This is understandable, considering that two-thirds of travelers use online channels to make their bookings, and PMSs are essential for the efficiency of a hostel. However, there's an emerging trend in the hostel industry that is yet to firmly establish itself among hostel tech. Because the technology is still finding its footing, I haven't come across a standard title defining it. For now, we'll call them Guest Communication Platforms (GCPs). Simply put, these are platforms that focus on providing hostels with a direct digital channel to their current guests during their stay.

Young travelers going mobile

It's not surprising to see these platforms popping up. Seventy-five percent of all travelers, and more importantly, eighty-seven percent of millennial travelers, consider their smartphone a travel essential. They are more likely to pack their smartphones than their toiletries. Another important number to note is that forty-six percent of all travelers and fifty-five percent of millennial travelers believe in-room Wi-Fi is a must-have, with only six percent willing to pay extra for it. I'm sure, as a hostel manager or owner, you don't need to be reminded of these numbers; you can see it happening in your common areas, bars, and in reviews mentioning the performance of the Wi-Fi. The combination of these trends presents several challenges. It's difficult to create the social atmosphere that is so unique to hostels and to draw guests' attention to events and promotions when they are focused on being connected. However, this focus has also created the market for GCPs.

Hotels are already there

GCPs are steadily making their mark in hotels, characterized as mobile concierges. Through these platforms, hotels can understand their guests' needs before they arrive, allowing for a more personalized stay. For example, guests can select their room preferences, view settings, and even pillow preferences. Hotels are seizing the opportunity to drive commerce through their apps, allowing guests to order drinks, food, and check in/out with ease. But would a mobile concierge find a place in a hostel?

Hostels are slowly following

LobbyFriend Inc, which launched in 2012 in Canada, was the earliest indication that the concept could be established in hostels. They describe themselves as the first-ever "temporary social network," aiming to connect guests to each other at their properties, thereby improving their social experience. Guests also have access to exclusive offers, nearby attractions, and events provided by the hotel. Unfortunately, this was met with some skepticism by frequent travelers and industry professionals, mainly due to concerns about privacy and unwanted attention from strangers. The issues arise from the combination of the type of guests at hotels and the primary function (social) of this particular platform.

Hostels are more likely to succeed than hotels

The social aspect is part of the hostel culture. So far, there have been a few attempts to create an effective GCP for hostels. Gulliver, Rm8, and Hallways all launched their platforms in 2014. Their platforms were similar, offering hostels and guests a way to communicate with one another and to promote and view events and activities. Rm8, a Russian startup, offered some additional functions, allowing guests to book directly at the hostel, view who was staying in what rooms, and claimed to provide hostels with extensive marketing opportunities. Rm8 was also the only platform to generate revenue by charging hostels. Unfortunately, as promising as these platforms looked, none of them broke any ground for the same reason: a lack of users. Without users, it is impossible to generate revenue, no matter how strong the concept is. However, the social aspects of GCPs are more likely to succeed in hostels, given their existing social focus combined with young mobile travelers.

GCPs today

Currently, there are two Guest Communication Platforms for hostels attempting to cement their places in hostel tech: Comundu and GuestU. Both platforms generate revenue by charging a fixed fee for usage. GuestU advertises itself as the world's number one mobile concierge and is aimed at both hotels and hostels. They offer to build personalized branded apps based on their existing framework with a degree of customization. GuestU focuses on helping hostels provide their guests with information on services and points of interest with GPS routes. GuestU differs from its predecessors in that it builds individual apps for each hostel and does not have a function for guest-to-guest communication. Although it still seems they are yet to crack the issue of onboarding guests at the hostels, they do offer help to hostels in promoting their app through various channels. As a result of building separate apps, GuestU may face an even bigger challenge in onboarding guests in the hostel industry. They claim that "guests will download an app if the benefits of doing so are clear and emphasized," which I do agree with. However, when a traveler stays in approximately 10 hostels, they may be put off by having to download 10 separate apps. Comundu is specifically targeted at hostels and aims to create a network of hostels within one app that both guests and hostels can benefit from. The platform is similar to Comundu's predecessors, offering a comprehensive platform that allows guests to connect to each other and the hostel, view events and recommendations, see other guests staying at their hostel, make direct bookings, and provides ample marketing opportunities. There is a significant focus on the social aspect of this platform. Comundu's goal is to encourage guests to reach out to one another and connect, ultimately getting them off their phones and encouraging in-person interactions. What separates this platform is that Comundu is doing something creative to onboard guests to their app. They are leveraging travelers' need to be online and have integrated their app with the hostel’s Wi-Fi. This integration turns the hostel’s Wi-Fi into a communication channel, allowing the hostel to reach all of their guests who are connected. This two-channel platform ensures that hostels are reaching their guests with valuable content and successfully onboarding them onto the app.

GCPs in the future

Currently, Comundu has 19 hostels on their platform throughout Europe. As the network grows, it will develop into a valuable tool for travelers to select which hostel to stay at next. As has been proven, hostel networks provide unique marketing opportunities. It will be interesting to see how these platforms develop and whether either of them will make a significant enough impact on the hostel industry to establish themselves as essential tech.

HostelTrends Note: GCPs feed off the rise of the 'Silent Traveler,' a millennial guest who would rather communicate through an app than approach a desk. As more millennials (and younger travelers) travel increasingly often, GCP models will likely become more validated. Even Hostel Rocket is now focusing on this space under the Hostelite brand. The space of online travel will surely heat up, so consider whether a GCP is right for your hostel.

All statistics are taken from TripAdvisor's TripBarometer Report for Travel Trends 2016.