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Thursday, 16 August, 2018, 15 : 58 PM [IST]
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Indian Backpackers’ Hostels on their Growth Trajectories
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Backed by a growing
middle-class base, higher
disposable income and
a new cultural wave,
more and more Indians
are travelling and the
travel and tourism
industry in India thus
has witnessed a meteoric rise. One trend
that has long existed among the western
travellers and is catching up in India is that
of backpacking. As more and more Indians
are taking up backpacking, this industry has
got a positive boost and hostel chains such as
Zostel, STOPS, Lavie, Roadhouse, Backpacker
Panda, etc., are amongst many other smaller
chains and standalone properties which have
sprouted up and are successfully running
the show. However, to exploit this trend to
its advantage there is a huge concern in the
infrastructure readiness of the country which
includes services related to accommodation,
entertainment and food where the country
ranks at a meagre 110th (World Economic
Forum, April 2017).
 The travel and tourism industry in India has
emerged as one of the key growth drivers in the
service sector industry. India has rediscovered
its potential as a major tourist destination for
both domestic and international travellers.
With its rich culture, diverse set of people,
high historical capital, abundance of natural
bounty and thriving business opportunities,
there has been an understandable increase
in the tourism activities. Apart from direct
contribution to the economy, tourism is also a
major employment generator and contributor
to the foreign exchange. In 2017, India has
been ranked at the 40th place amongst the
list of 136 countries in Travel and Tourism
Competitive Index (World Economic Forum,
April 2017). India ranks high on the cultural
quotient (9th) and vast natural resources
(24th) which serve as a major attraction for
tourist and is also ranked 10th on the price
competitiveness. The tourism and hospitality
sector in India contributed USD 71.53 billion
in 2016, which accounts for 9.6% of the total
GDP and is the third largest foreign exchange
earners in India. Foreign exchange earnings
(FEEs) in February 2018 were USD 2.706
billion. The number of Foreign Tourist Arrivals
(FTAs) in February 2018 only was 1.05 million.
A sum of USD 27.693 billion was earned under
foreign exchange through tourism during
calendar year 2017. This direct contribution
of travel and tourism industry is expected
to reach USD 147.96 billion by 2027 (Indian
Brand Equity Foundation, 2017). Also, the
total contribution to the job market facilitated
by the travel and tourism industry stood at
9.3% of the total employment (40,343,000
jobs). INR 2,284.9 billion worth of investment
was made in the travel and tourism industry
in India in 2016, 5.7% of the total investment
(World Travel and Tourism Council, March
2017). With a stronger middle class, increase
in the young professionals, higher disposable
income and an optimistic economy, we have
seen a rise on the number of domestic tourists
in India. Indians are increasingly travelling
more than any time before, both within the
country and to foreign countries. According
to the Ministry of Tourism data, the domestic
tourist visits (DTVs) to the state and union
territories has grown by 15.5% on a year
on year basis and stands at a count of 1.65
billion. The foreign tourist arrival (FTA) has
also increased by 18% on a year on year basis
to reach 7,23,000 in September 2017 (Indian
Brand Equity Foundation, 2017). The increase
in domestic travellers is also backed up with
the fact that domestic tourists are the major
contributors to the travel spending. Domestic
travel spending generated 88% of the direct
travel and tourism gross domestic product
in 2016 as compared to 12% by the foreign
tourist counterparts. This gives a major boost
to the hostels in the country and is a testimony
to the fact that these new age social settings
are set on a growth trajectory (World Travel
and Tourism Council, March 2017).
Travelling today can be induced by various
factors. There are myriad motivations,
reasons and factors for people to travel that
may range from a weekend leisure escape
to a family holiday or for business purposes.
All these different travellers have different
needs and requirement that they expect out
of their travel experience, both transactional
and psychological. Popular media has always
been a direct reflection of the society itself.
Whatever is simmering amongst the people at
large and whatever is their popular sentiment
gets extrapolated, and mixing it with some
dose of melodrama and intrigue we get the
most popular media content. Bollywood in
India is the best example to understand this
phenomenon as a mere glance as the genre
of the movies over years after independence
would show a striking correlation to the
general trends in the country at large. Drawing
on this it is obvious that you must have taken
note of Ranbir Kapoor touring the world with
a professional camera jiving to Ilahi, Kangana
Ranaut grooving in London and Paris, Shah
Rukh guiding a clueless Gujarati belle across
Europe, Alia hitting the Highway amongst
other such believable characters who are on
solo journey of joy and self-discovery. Thus,
it is important for the industry to understand
these travellers and align themselves with their
needs to provide the expected service quality.
One such group of travellers who has been on
the rise are the backpackers. The phenomenon
of backpacking and study of backpackers
can be traced way back to 1972 when Cohen
for the first time differentiated between
institutionalised and non-institutionalised
travellers. The former referred to as the
conventional and traditional tourists in sync
with the features of mass tourism whereas the
later characterised of an off-beat set of middleclass
young tourists with an unconventional
travel pattern and service consumption
habits. This is the latest trend if not a fad in
our country right now, solo travelling and off
beat travelling. So what is it? More and more
people of the young generation, the well to
do college goers and young professionals are
backpacking and heading out to popular as
well as off-beat destinations as solo travellers.
Backpacking can be understood as the form
of travel, mostly solo or in a small group,
with a longer and more flexible itinerary on a
tight budget, with the intent of exploring and
understanding a particular place as intimately
as possible and not just being a point to point
popular destination tourist. For a backpacker
the travel experience which includes the
transit, the people and the place itself matter
the most rather than the tourist spots. As a
concept, backpacking popularly originated
in the west where travellers would take out a
month to travel and explore places on a tight
budget. Naturally as discussed the motivator
for a backpacker is the ethos and the culture
of the place being visited, experiencing the
place first hand, understand the people and
culture, meet new people and interact with
them. And moreover, because
they have a longer and more
flexible itinerary on a tighter
budget, conventional staying
options which do not fulfill any
of their requirements gave way
to the concept of backpacker
hostels.
Backpackers’ hostels differ
from conventional stay options
in the fact that they offer the
traveller with option to book
a bed in a common dormitory
rather than a private room
thus cutting the individual’s
accommodation cost drastically.
There are several factors
which make them unique and
differentiate from hotels. A recent research
conducted by Dr. Anjali Bansal and her former
student, Ayan Bairolia in MICA, Ahmedabad
to identify such factors corroborates the
same. The research was undertaken in three
stages using a mixed method approach with
both qualitative and quantitative methods.
The first stage of the research has employed
online content analysis, where in 150 traveller
reviews across 15 different Indian backpackers
hostel on a leading travel review website were
analysed. This exercise helped in identifying
the various service dimensions that affect
back-packers’ perception of the hostel. The
content analysis was followed by the in-depth
interviews with hostel owners and managers
as well as habitual backpackers in the second
stage of the research. All of those are based in
India, this stage also witnessed the extensive
interviews of 20 Indian backpackers. The
qualitative research was backed by a
quantitative study amongst 130 backpackers
which indicated 9 distinct factors that Indian
backpackers keep in mind before their hostel
selection. These factors in the priority order
are- staff behaviour, cleanliness of the hostel,
the flexibility offered to the guests, the safety
and security measures, the facilitation of social
interaction, the services and facilities offered,
the price of the beds, the location of the hostel
and the gender based dorm composition.
This research clearly suggests that the most
important consideration for the service factor
is the staff. The staff of the hostels are the first
point of contact and the most dependable
for a backpacker in a new environment. The
guest is looking forward to a hostel where
in the staff is efficient in their work, is a
friendly person and helpful to the guest when
needed. In the Indian market, the behaviour
and attitude of the staff towards the guest
could go in a long way in determining the
success of the hostel property. The factor staff
behaviour is followed by other softer aspects/
factors like opportunities of interactions with
other travellers, fun activities, guided tours
clearly indicate a shift in the needs of this
unique category of travellers. Besides, the
importance of the physical / hard factors i.e.
clean spaces, spaces for parking, proximity
to the prime locations, safety and security
etc. does not get compromised. These remain
crucial in decision making. Hence, it becomes
essential to the hostel brands to build their
communication and marketing strategies in
accordance with these need priorities. And
thus the communication by the backpackers’
hostels which offer the inexpensive stay
options should be centered around important
factors such as friendly staff, clean bedding
and a socially active atmosphere rather than
the location and price of the bed per night. But
before that it will be interesting to see how
and to what extent the backpackers’ hostels
in India which are characterized by being
low investment budget accommodations will
build on the above mentioned service quality
dimensions and meet the requirements of the
backpackers.
Hostels moreover, are designed and
maintained in a manner which is in ethos
with the culture of the place it is located in,
helping the travellers explore and experience
with local guidance as well as to facilitate
interaction with fellow traveller lodged in the
hostel through common areas. Hygiene factors
such as security, cleanliness, assistance,
food and other allied services are kept in
mind and popular hostel chains are the ones
that have aced the above factors well. They
have received rave reviews and have helped
kick in the change from conventional hotel
accommodation in India to bed based dorm
accommodation in hostels. The interviews with
the owners and these travellers
have clearly indicated that the
challenge of the infrastructure
readiness still lies.
The hostel market in India is
at a nascent stage and with the
overall expansion of properties
and upcoming hostel brands,
it is important to understand
the service factors in the
context for Indian backpackers
staying in Indian hostels. While
India has got huge youth
dividend to exploit sectors like
backpacking and backpackers’
hostels, at the same time the
youth at large will be looking
for options to strengthen their
travel experiences. The service providers
in hostels are definitely sensitive to their
requirements and are hopeful that this sector
will receive high pace in the coming years.
Deep Kalra, the founder and CEO of an online
travel company, MakeMyTrip.com has rightly
mentioned that today’s travellers want unique
experiences tailored to their priorities and
want to take control of their own itineraries
(Business World, January 2018). Delivering to
them starts with the very point of understanding
their unique travel behaviour and predicting
what they will need even before they begin
the booking process.
The views expressed within this column are the
opinion of the authors, and may not necessarily be
endorsed by the publication
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