Behold, the experience economy is alive! Just like the way evolution works, the experience economy is built upon the establishment of the service economy. First coined in 1998, in July’s edition of Harvard Business Review – by economists B. Joseph Pine II and James H. Gilmore, in their article titled, “Welcome to the Experience Economy” – it provides its readers with a clear explanation as to why: being the inevitable progression of economic value, the what: the concept of an experience, and the how: the best ways to stay competitive in the shift. 

Flash forward 25 years and we can begin to see its massive surge!

For hostels…this is the moment they’ve been waiting for. They have been homes to unforgettable experiences, to lifelong memories since their creation and this is their moment to expand!

So, what does this mean for your hostel’s business? It means that competition will increase and success will be based upon the experience you are able to create for your guests. The memories you help create are now the products you offer. No longer are you simply selling a bed, you are now looking to attract the market by offering an experience- a “beyond-bed”. And selling it!

Read below for insider tips on what makes a hostel thrive! 

HandyTip #1

Have your most friendly at the front! First impressions are everything for creating an experience. Pine & Gilmore often refer to the experience economy in the terms of work being theater, and business being the stage. Not only do travelers want a comfortable environment to stay in, but they also want a magical experience. To begin with your best foot forward, place your most outgoing employee/volunteer at the front! Someone who can easily entertain and captivate guests from the very first impression will help you set the opinions of your guests in the positive direction. Funny catchphrases, or unique taglines are great for this memorable introduction. This foundation of positivity will set the course in the right direction for your guests. 

This is also best implemented by having a designated person who makes sure guests are feeling engaged and invited in. A friendly and fun atmosphere throughout one’s stay is integral to the experiences travelers are looking for in hostels. Just because someone is a solo-traveler does not mean they have overcome all their social anxiety, an outgoing soul always helps to create opportunities for others to break from their shyness and gain a sense of connections with others, and therefore themselves! In this experience economy, every hostel needs a beyond-bed facilitator – an events manager, atmosphere creator, built-in friend- to enhance your guest’s experience.

HandyTip #2

Open spaces! The beds should not be the only effort of design in your hostel. In Claire Martin’s 2011 essay, “The Creation of Place In The Experience Economy” she forcefully states that, “Placemaking is not simply about reconnecting people with place, it’s about reconnecting people with each other.” She expands on the idea that spatial design must refocus on immersive spaces in order to create meaning in everyday experiences. If meeting others is a main factor in staying in hostels, then your space must reinforce that opportunity. 

This is best implemented by having areas that are inviting to socialize so guests can easily meet one another. The main factor when deciding what hostel to stay at – for travelers – is what you are offering, beyond just bed. These will be things mainly outside of the dorms, so be creative and bold with your designs! Themes or unique decor, or paintings and art will make you stand-out easier. Open spaces that provide areas to relax, lounge, allow shade, and mingle are always a factor in popular hostels. However, don’t forget to dedicate a quieter corner or area for bookworms, remote-workers, yogis, or those just needing to recharge their social batteries. Place as much focus, or more, on the spaces outside of the beds and people will be quick to take up the space you offer! 

Handy Tip #3 

Provide activities daily, if not every other! Not many travelers are staying long-term in hostels, but what you definitely don’t want guests to do is leave early to go find another hostel, in the same city! Or leave a mediocre review! By providing activities daily, you help engage your guests in more opportunities for experiences, especially ones unplanned in their itineraries. Part of the mystique of traveling is to open the door to possibility. By providing these services you directly help fill in guests’ gaps with spontaneous adventure! And who knows, you might just change someone’s life from it!

…And of course earn a few extra bucks ;).

This is best implemented by creating a daily schedule of events, or a rotating roster to make sure each experience is fairly offered to all guests, no matter their duration of stay. Sometimes it just might even convince a traveler to stay longer! By doing this daily or close to, you eliminate the risk of a guest falling into the pocket of bad timing. 

Not only are they an addition to your guests’ satisfaction, but also the better the beyond-bed experience you offer, the more demand you indirectly create for your hostel. This helps open avenues for expanding your hostel’s capacity, or for even increasing your prices. With beyond-bed activities you don’t just start generating “beyond-bed revenue”, but the potential for “the bed revenue” also increases, making it a win-win! 

Handy Tip #4

Let your travelers leave a mark on your hostel! Everyone wants to make memories that feel eternal. Small initiatives like noteboards, wall muraling, book exchanges, and instruments, can all help make a place feel more one-of-a-kind. It’s an integral part to the experience economy. Travelers are special people who seek magic in the world around them. The more whimsical and meaningful you prepare your hostel to be, the more room there is for the magic that people bring with them to weave into it! 

By engaging travelers to feel a part of your hostel and its stories, guests can begin to visually see the movement they are a part of, and the inspiration they can leave behind for others! 

Handy Tip #5

Use software to better organize your communications with guests and highlight your unique experiences and surroundings! As your hostel’s popularity flies off the charts, staying organized is a key to keeping the consistent value you provide to guests. HandyHostel’s platform features real-time data analytics to help you keep track of each activity you arrange, supporting you to seamlessly implement new ideas and replace underperforming ones. In addition, you can also use it to communicate start times/reminders to all your guests, as well as booking them directly with you, increasing engagement overall! 

As Gen Z is the main driver of the experience economy, as well as a favorable portion of hostel travelers, upgrading your hostel digitally will help you coordinate more efficiently with their preferences. All conveniently located on one platform for your hostel and for guests, HandyHostel can help you bridge the divide with a sustainable choice. Lose the papers and gain the people! 

In this economy? Finally the answer is yes! 

The experience economy is here and you should be setting up your hostel to reap the benefits of it! To all the hostel-owners out there, and to those who dream of owning one, now is the time to join the beyond-bed movement and create the new vision of hostels in the experience economy! 

Be sure to check out next week’s article for guidance and inspiration on unique and original experiences for hostels.