Budget-conscious travelers have more options than ever before. While hostels long held the monopoly on attracting these money-saving guests, Airbnb entered the game and changed things. Staying at a hostel vs Airbnb is now a question these travelers must face. Lucky for you, a short-term rental proves itself to be a pretty good option when competing in this market. The truth is, you don’t have to compete dollar-for-dollar with a hostel. This post will explain how you can attract travelers to choose your listing over a hostel.

Host Tools provides an automated, unified calendar for short-term rental hosts, allowing you to seamlessly list on all major channels. Start your free trial today!

What to know about budget travel

Not too long ago, there was a time when the phrase “budget traveler” invoked images of college students with backpacks or young people taking a “gap year.” However, the rise of remote work has added more digital nomads, solo travelers, and young professionals to the market than ever before. This newfound market is a goldmine for short-term rental hosts. These guests typically research their accommodations extensively (think reading every review ever), as they will be booking for a few nights to even a few months.

What do these travelers really want?

Budget travelers are looking for more than a cheap bed in a dorm room. They’re looking for:

• Some place clean
• No concerns about safety
• The ability to cook meals in a kitchen
• Good internet connection
• Tips from locals on where they should eat, drink, and explore
• Flexible cancellation policies
• A common space to hang out with other travelers

The perks of a hostel

Hostels have mastered the art of budget accommodation through several key strategies:

• The shared spaces make nightly rates cheaper. A single night in a co-ed dorm could be as cheap as $15.
• You won’t be lacking for friends, as there are common areas designed for hanging out. Many hostels even run nightly activities like bar crawls.
• They’re often in good locations like the center of the city or right by major tourist hot spots.
• Staff at hostels tend to be local experts.

The benefits of an Airbnb

While hostels have their strengths, short-term rentals have their own perks that hostels can’t compete with.

• You get a space to yourself. Whether it’s the whole home or a private bedroom, you’re not sharing a space. You don’t need to worry about your belongings being safe, nor about being woken up at 2 a.m. by another guest stumbling home.
• No waiting to use the kitchen! Hungry? Get in there. No need to wait in the 10-person deep line.
• You’re living like a local. You can use the local grocery store, ride the bus, and walk down the street for a cup of coffee like any other person who lvies there.
• No shared showers. Everything is clean and in tip-top shape. Plus, who wants to have to wait for the shower anyway?

How to attract budget travelers

• Compare prices of hostels in your area and adjust accordingly
• Offer weekly or monthly discounts
• Adjust your rates based on seasonal demand
• Add a desk and workspace
• Use keywords strategically in your listing
• Highlight cost-saving amenities like your kitchen, free Wifi, and potentially free parking.
• Show how close you are located to public transportation.
• Offer flexible check-in and check-out times.
• Be quick to reply.
• Create a guidebook that shares all your favorite local spots.
• Research hostel prices in your area, then position your rates strategically. Instead of matching their lowest prices, offer better value at a slight premium.

How to improve your Airbnb experience

Master your check-in process

• Invest in self-check-in
• Provide clear instructions on how to access the property and get to it from major airports or train stations.
• Offer flexible check-in and check-out times.

Offer thoughtful amenities

• Focus on the details. What amenities really matter to you when traveling?
• Offer basic kitchen supplies like salt, pepper, cooking oil, etc.
• Invest in high-quality linens and towels.
• Offer high-speed internet
• When possible, include the use of laundry facilities.
• Focus on amenities that provide real value rather than luxury touches:

Communicate

• Have costs upfront, no hidden fees
• Respond to questions as quickly as possible.
• Check in on your guests every so often.

List your home on multiple sites

• Make sure you have your property listed on a variety of sites. Expand beyond Airbnb to sites like Booking.com and Vrbo.
• Join the backpacker grounds on Facebook.
• Partner with bloggers or influencers. A simple mention on Instagram or a blog can drive traffic to your property and direct booking site.

As you can see, competing with hostels doesn’t mean you have to race to the bottom with your prices. Some guests, sure, will always pick the lowest price. But not all. As a short-term rental host, you can find a perfect balance of offering a low-cost stay that still offers quality amenities and earns you a respectable income. Compare prices in your area, research other listings and hostels in your location, and start thinking like a budget traveler today.

Host Tools provides an automated, unified calendar for short-term rental hosts, allowing you to seamlessly list on all major channels. Start your free trial today!