In the backpacking world Hostelworld has become a household name, which makes sense considering the fact that www.hostelworld.com is the world’s number one hostel booking website, and “the leading provider of online reservations for the budget, independent and youth travel market.” With the mission: “to become the fastest-growing online provider of great value accommodation, using innovative technology to inspire independently minded travellers everywhere,” the company has certainly done just that, now listing over 35,000 properties in 180 countries, with over 3.5 million guest reviews.
The website was created by a hostel owner and IT entrepreneur who realized that at that time, 1999, there was no way to book and pay hostel reservation deposits online. The company started out as a platform connecting backpackers in need of cheap accommodation with budget hostel owners but has the platform has grown to include other types of accommodation including campsites, self catering accommodations, B&B’s and budget hotels.
Hostelworld created “the network effect, with value growing as the platform matched demand from both sides…increasing returns to scale,” (Eisenmann, 2006). One of the ways the website attracted so many users was through their affiliate program with over 3,500 distribution partners, including big names in the travel industry such as Lonely Planet and Ryanair.com.
So how was Hostelworld been able to attract more clients than similar platforms? Continue reading Hostelworld: More than just a place to book your next accommodation