I came across a service called Airbnb. Its kind of similar to Couchsurfing except that the host can charge for their space. And because hosts can charge for their space, travelers can choose from a range of space. What astonished me about this service is that it is possible to find a private bedroom for less than 10 pounds a night in relatively central London.
Its so cheap for what’s on offer that even Hostels can’t compete. And I don’t see a reason why the popularity of these DIY room share services will fade away any time soon. So what will be left for cheap hotels if they can’t compete on price?
I think one additional reason why young people choose to stay in hostel is because of its social nature. But this is also being replaced by abundant social networks. So I think that These budget hotels needs to reconsider their value proposition.