How to list your Hostel on Airbnb

Hostels are no longer just for backpackers on a shoestring budget. They've become a thriving part of the global travel industry — and the numbers prove it. The global market size was valued at $7.21 billion in 2023 and is projected to grow at a CAGR of 6.5% from 2024 to 2030, according to Grand View Research. This impressive growth is fueled by shifting customer preferences, rising demand for affordable accommodations and the appeal of community-driven experiences. As guests increasingly seek budget-friendly yet memorable stays, platforms like Airbnb have stepped in to accommodate this shift. For property owners and managers, listing on Airbnb isn’t just possible — it’s a smart move.

This article will walk you through everything you need to know to successfully list your hostel in Airbnb.

Is It Profitable to Run a Hostel Business?

The short answer? Yes, it can be very profitable. The hostel business model is built around the idea of minimizing costs while maximizing booking numbers, creating a strong potential for healthy profit margins.

While a it might not generate as much revenue per booking as a hotel, the cost to host each reservation is significantly lower. Plus, you can accommodate far more guests in the same amount of space.

For example, where a standard 30m² hotel room might comfortably house two guests, a dorm of the same size could fit six to eight guests, greatly increasing your earning potential.

To put it into perspective:

Imagine you operate a mid-sized hostel with enough beds for 50 guests, charging $25 per dorm bed per night. When fully occupied, you could earn around $1,250 per night — that’s roughly $37,500 per month before expenses.

And that's just the beginning. You can add extra income streams by offering services like:

• An on-site bar or café for guests to experience local food

• Guided local tours

• Nightly communal dinners or events

• Bike rentals or adventure excursions

These additions not only enhance the customer experience but also boost your overall revenue.

That said, profitability isn’t guaranteed. In today’s competitive travel market, success comes down to delivering an exceptional experience. To truly thrive, you'll need the right knowledge, strong management skills and a customer-focused mindset.

Pro-tip: Travelers today value unique, social experiences just as much as affordability. Highlighting your hostel’s community atmosphere can make your listing stand out!

Today’s travelers are far more eco-conscious and experience-driven than ever before. In fact, research shows that 92% of them now consider themselves "green travelers," actively seeking out ways to lower their environmental impact.

Supporting this trend, 65% of guests say they are more likely to stay in eco-friendly accommodations today than they were just five years ago. Sustainability isn’t just a nice-to-have anymore — it’s a key decision-making factor for many people when choosing where to stay.

Beyond eco-awareness, today's hostel-goers are motivated by authentic experiences over traditional party scenes. Nearly half (49%) say that cultural experiences are the most memorable part of their travels, followed by once-in-a-lifetime adventures (34%), while only 17% prioritize nightlife. Additionally, about one in five guests are more likely to pick a listing that offers free social activities like communal dinners or city tours.

Did you know? Hostels aren’t just for solo travelers — many now cater to families, remote workers, and even older people looking for affordable, community-centered stays.

Requirements to List Your Hostel on Airbnb

Before you can successfully list on Airbnb, it’s important to meet the platform’s basic hosting standards. Airbnb encourages all hosts to deliver a pleasant, reliable, and high-quality experience for every guest. Here’s what you’ll need to focus on:

Be highly responsive: Make sure you reply to inquiries and reservation requests within 24 hours to maintain a strong response rate. Quick communication helps build trust and improves your visibility on the platform.

Accept reservation requests promptly: Whenever your listing is available, try to accept requests in a timely manner. Guests appreciate feeling welcome and reassured during the reservation process.

Avoid cancellations: Reliability is crucial. Avoid canceling on guests unless absolutely necessary, as last-minute changes can seriously disrupt their travel plans — and hurt your listing's reputation.

Maintain a high overall rating: Aim for consistent 5-star reviews by offering clean spaces, friendly service, and an enjoyable stay. Guests love knowing they can count on a certain standard of quality, no matter where they book.

Remember, Airbnb tracks your performance against the platform’s average for all hosts. If your ratings consistently fall below expectations, your listing could face penalties like low visibility.

Key Elements to Consider When Starting a Hostel

Starting a hostel is an exciting venture — but it takes more than just opening your place up to guests. From planning your concept to navigating legalities and logistics, here are the key elements every aspiring property owner should consider:

1. Do your market research

Location is key — those with locations near public transport, city centers or tourist spots tend to book up faster. But to really stand out, you also need to tailor your space to fill gaps in the local market and meet the needs of your ideal customer.

2. Build a strong concept

Start by defining your vibe — are you catering to backpackers, digital nomads, or groups of friends? Once you know your audience, focus on creating meaningful experiences that resonate with them, like communal dinners, local tours, or themed events. It pays off: according to American Express Travel’s 2024 Global Travel Trends Report, 77% of guests now prioritize experiences over cost when deciding where to stay.

3. Plan the size and scale

More beds = more income. There’s no hard rule, but 20 beds is often considered the minimum to make the numbers work. However, planning for 30+ beds helps spread out your fixed costs and improve overall profitability.

Think about:

• Number of rooms

• Shared vs. private setups

• Space for common areas and events

Pro Tip: Start with a scalable model that allows you to expand once you gain traction.

4. Get your legal requirements sorted

Licenses and permits are essential. Before opening, ensure your hostel complies with local laws, zoning, and safety regulations. This may include business licenses, health permits, and building code approvals. Skipping these steps could end up in hefty fines or even forced closure.

5. Source the right equipment

A great hostel is more than just beds. You’ll need to invest in:

• Dorm essentials: Bunk beds, quality mattresses, lockers, linens

• Bathrooms: Toilets, showers, hot water systems, hair dryers

• Common areas: Beanbags, board games, foosball/pool tables

• Kitchen gear: Ovens, fridges, cutlery, cookware, dining space

• Reception setup: Desk, booking software, printer, card reader

• Security: Lockable doors, access control systems, CCTV cameras

Depending on the size of your hostel, you will also find that you need full-time staff, especially if you offer social experiences and some amenities like campfires

6. Prioritize safety and risk management

Safety is a must. You’re hosting dozens of people, so your space should support customer well-being, emergency readiness and legal protection.

Physical safety

Start with the basics:

• Install secure entry systems like keycard access or keypad codes for rooms and main doors

• Set up surveillance cameras in public areas (lobbies, entrances, hallways) to deter theft and increase guest confidence

• Ensure all rooms have working smoke detectors, fire extinguishers, and clear exit signage

• Create an emergency evacuation plan and display it prominently throughout the building

• Offer secure lockers for guests to store valuables — it’s an expected feature in most hostels today

• Conduct regular safety inspections and maintenance checks to avoid hazards before they become problems.

Insurance

Even with the best precautions, accidents can happen and you don’t want to be unprepared. That’s where liability insurance comes in. This type of coverage protects you financially in case a guest is injured on your property or claims negligence.

Here are the key types of insurance hostel owners should consider:

• General liability insurance: Covers injuries or accidents involving guests on your premises

• Property insurance: Protects your building and major equipment from damage (e.g., due to fire, flood, or vandalism)

• Contents insurance: Covers the contents inside your hostel — beds, electronics, kitchen gear, etc.

• Business interruption insurance: Helps compensate for lost income if you’re forced to shut down temporarily (for example, after a fire or major repair)

While platforms like Airbnb offer basic host protection, it’s often limited. You’ll want comprehensive coverage tailored to hostel operations, ideally from a hospitality-specific insurance provider.

7. Write a solid business plan

A clear, detailed business plan sets you up for success. It should include:

• Mission statement – Why are you starting this hostel?

• Management plan – Who’s running the show?

• Description – Your concept, size, and services

• Market feasibility – Research + competitor analysis

• Channel strategy – Will you list on only on Airbnb?

• Financials – Room prices, occupancy estimates, startup costs, and projections

How to List Your Hostel on Airbnb

Listing on Airbnb can open the door to a world of opportunity for you — from increasing your bookings to reaching a global audience of budget-conscious, experience-driven travelers. Follow these instructions to get listed on Airbnb.

FAQ about Listing Your Hostel on Airbnb

Airbnb is a powerful platform for reaching budget-conscious travelers, but there are a few important things to keep in mind to ensure you stand out for the right reasons.

Can you book hostels on Airbnb?

When listing your hostel, you'll find that Airbnb’s ‘Shared Room’ category is the closest listing type that matches the typical hostel setup. It’s designed for spaces where multiple guests sleep in a shared space, like dormitories. However, keep in mind that this category is also home to a wide range of low-quality or poorly maintained hostels, which can affect how your property is perceived in search results.

What is the efficiency of Airbnb management software?

While Airbnb provides basic tools to manage availability, messaging, and pricing, its features can fall short for properties with multiple rooms and high turnover.

Use a Property Management System (PMS) like Hostaway which integrates directly with Airbnb (and other channels), giving you centralized control over calendars, automated messaging, dynamic pricing, and real-time updates. It’s the kind of tech that helps owners stay organized and scale without burning out.

What is the 25 rule on Airbnb?

The "25 Rule" refers to Airbnb’s restriction on guests under the age of 25 reserving entire homes, particularly in their locality, if they have fewer than three positive reviews. While this rule is aimed at preventing party-related issues in whole-property rentals, it’s worth knowing in case you list private rooms or full dorm suites. Shared or private room listings are generally unaffected by this rule — but it’s still smart to review Airbnb’s guest eligibility.

Final Check-In: Launch with Confidence

Listing your hostel on Airbnb is more than just uploading photos and waiting for bookings — it’s about crafting an experience that reflects your unique space and attracts the right kind of guests. From understanding today’s eco-conscious, experience-driven travelers to setting up your listing with the right tools and safety measures, success comes down to preparation, presentation, and consistency.

P.S. Get the most out of Airbnb and all other OTAs with Hostawy's channel manager for vacation rentals.