Youth Hostel Businesses: the COVID-19 Aftermath

Youth Hostel Businesses & the COVID-19 Aftermath

Youth hostels have been an instrumental element in tourism economic development. Not only do youth hostels provide an alternative to less expensive lodgings, but they are also symbols of youthful energy and camaraderie. Travellers enjoy the lively atmosphere and appreciate the shared experiences with fellow young adventurers.

However, unlike other forms of lodging, youth hostel businesses have been affected by the pandemic, mainly as the space setup consists of shared spaces. Indeed, this has affected the reservations and, ultimately, the revenue of these lodging establishments. Furthermore, as youth hostels were first popularised in Western nations, they are still a relatively new concept for travellers from developing countries, including young Chinese guests. Given these concerns, this study explores tourists' perceptions of risk and their impact on behaviour towards youth hostels, addressing essential problems in the industry.

Sunway University's Dr Philip Pong Weng Wong and colleagues' study sample focused on 534 university students in the Jiangsu and Shanxi provinces in China, where a close-ended questionnaire survey was administered on wenjuan.com, a Chinese online survey platform. The hypotheses for this study were developed based on perceived risk elements, including psychological, functional, financial, time, and health risks, which impact mindset and emotions. The goal was to understand how these risk elements affect a young tourist's willingness to pay or visit youth hostels. The hypotheses testing was carried out using SPSS and AMOS-SEM.

This study confirmed that one’s thoughts and emotions influenced the perception of a specific site or destination. Consistent with previous studies, there are indications from this study that one’s mental image of youth hostels influences one's emotional attitude or inclination towards visiting or staying at the youth hostel.

This study also offered insights into how youth hostels can adjust their marketing strategies to address and manage perceptions of risk:

1)    Psychological risk
Youth hostel managers should consider boosting guests' physical comfort and mental well-being. One strategy that can be adopted is categorising travellers based on their profiles, such as grouping backpackers. Living in shared spaces in youth hostels can foster short-term friendships among guests, which may be vital when encountering challenges during their travels.

2)    Functional risk
Youth hostels often adopt the "share economic" concept as an operational strategy, featuring shared facilities like kitchens, rooms, and communal areas. While this approach can contribute to reducing carbon emissions, youth hostel managers must ensure that high-quality services are maintained within this shared concept.

3)    Financial risk
A transparent and competitive pricing strategy can attract more guests to youth hostels. It is essential to ensure that there will be no additional charges during their stay. Furthermore, pricing should reflect the facilities offered, and safety standards must be prioritised to address guests' financial concerns.

4)    Time risk
Youth hostel operators should consider facilitating parties or tour activities to reduce guests' time risk. This also enables guests to mingle and experience different region’s cultures and customs.

5)    Health risk
Due to the shared nature of bedrooms, washrooms, kitchens, etc., in youth hostels, there are significant concerns regarding the health conditions of these facilities. To reassure potential guests about these conditions, youth hostel managers should provide information about the frequency of sterilisation processes. It is also crucial for youth hostel employees to obtain health qualifications to alleviate guests' concerns about health risks.

This study sheds light on the importance of youth hostels in tourism development, emphasising their affordability, vibrant atmosphere, and challenges. Nonetheless, it also highlights the need for strategic marketing and service quality adjustments to address diverse risk perceptions and ensure a positive guest experience.

While this study provided insights into how youth hostels attract young people, it did not consider other populations. Additionally, the study mainly focused on first-order perceived risk elements (psychological, functional, financial, time, and health risks). There is still a need to consider other physical, social, and privacy risks. Nevertheless, the findings of this study are crucial to forming a better understanding of the modern tourism industry.

 

Dr Philip Pong Weng Wong
School of Hospitality and Service Management
Email: @email

This article has been adapted from Yue Gong, Qian Gong, Jongsik, Philip Pong Weng Wong & Lei Wang (2024), How negative factors influence youth hostel stay aftermath COVID-19 pandemic, DOI: 10.1016/j.actpsy.2024.104162