It was once a rite of passage, but now a European summer holiday could be unattainable for young people

Posted by Admin June 15, 2024 Travel

Price hikes for hostels this summer in Europe are pushing budget travel out of reach for young Australians keen on a backpacking trip.

Keiarna Brooks has travelled across New Zealand, Canada and the United States over the past 18 months, and has noticed how high prices have climbed for accommodation.

The 20-year-old from the Sunshine Coast made plans to go to Europe this August, and was shocked by how expensive dorm rooms in a hostel have become.

“It’s definitely an obstacle, and it’s skyrocketed since COVID,” she said.

“I’ve booked Vienna for two nights for two people, and that was 128 euros ($213),” she said.

“It’s crazy … three nights in Amsterdam is looking like about $200, and this is in a four-bed mixed dorm.”

Rachel Davey, who has backpacked across 195 countries, documents her travels with her partner Marty as part of their blog the Very Hungry Nomads.

She’s noticed how different the costs of a European summer have become.

“I think it’s sad that it has become more expensive for young people to travel,” she said.

Price hikes ‘necessary’, hostel staff say

In the period from April 2023 to April 2024, almost 10 million residents returned to Australia from overseas — an increase of more than 4.7 million on the previous year, according to the Australian Bureau of Statistics (ABS).

Fifty-seven per cent of people who travelled did so for a holiday, with 1.57 million Australians departing for overseas last month.

Despite masses of tourists returning over the past two years, managers of hostels across Europe say the accommodation price hikes have been necessary to recover from the pandemic.

Macarena Herrero Romero, who manages hostels in Madrid, Brussels and Bilbao, said inflation has caused a massive spike in day-to-day running costs.

“The increase in the price of utilities [post-pandemic] was huge,” she said.

“Electricity, water and our laundry service all increased their prices.

“We make huge efforts not to increase our prices, but it was crazy last year.”

Hayden Alexander says it is cheaper to book ahead and in “shoulder seasons”. (Supplied )

Hayden Alexander, who manages a hostel in London, said electricity has definitely been a factor in the increased cost of a bed.

“We have seen that average price slowly creep up in those peak seasons,” he said.

“You see bed rates are climbing up a lot higher than they used to be.

“[You’re] probably looking at about a 20 per cent increase in a standard dormitory bed.”

Even mixed dorms with up to 20 people, which are usually the cheapest option, are currently averaging about 30 to 56 British pounds ($57 to $110) per night in July.

The increase in price is also due to hostel guests expecting more than a bed from their stays, Venice Hostel manager Gianluca De Vit said.

Gianluca De Vit said hostels are expected to offer more than a bed if they want to compete in the accommodation market. (Supplied: Gianluca De Vit)

Many now offer private rooms, modern designs, free events and a choice between mixed dorms and smaller amounts of beds in dorms which vary in price, to compete with other providers.

“You have to organise events free for your guests, but somehow you have to recover that money — maybe in the accommodation,” he said.

“So of course they are going to attend the event, but maybe even pay three, four, five euros extra in accommodation.”

Mr Alexander said the private rooms in his London hostel are designed to compete with lower-cost budget hotels, which is reflected in the price.

As a result, young backpacker-types aren’t the only travellers attracted to this accommodation style.

‘Flashpackers’ changing the face of hostels

Ms Davey agrees guests in hostels aren’t just young people on a budget anymore.

High demand means “flashpackers”, who travel like backpackers but have more money to spend, will pay higher prices for rooms in hostels.

Rachel Davey has travelled to 195 countries over 20 years. (Supplied: The Very Hungry Nomads)

“After COVID I think we missed a couple of years, [so now] everyone’s travelling again and there’s not enough accommodation — and hostels are usually in a really good location.

“So maybe they’re putting the prices up because demand is there, because they can ask for that and they’ll get it.”

Ms Brooks is travelling to Europe while she can, as she thinks it will become less popular attainable over the next few years.

She said there are other parts of the world where it’s still cheap to go backpacking.

“You can travel in Asia on $6000 if you’re smart with it,” she said.

“How far would that go in Europe?”

Cheaper alternatives

Last year, Skyscanner — based on consumer searches — found that 42 per cent of Australians believe the cost of flights to destinations is the biggest factor in deciding where they will go.

Search volumes for China, Japan and Thailand, which are closer to home, have therefore increased dramatically.

Miss Davey agrees there are still other options for cheaper travel for young people.

“You can make your money go further [in place] like South-East Asia and Latin America,” she said.

But if young people want to experience a European summer, she believes they can still find a way.

“[It’s worth looking at] other cities in popular countries, for example in Greece, instead of Corfu and Santorini there are smaller islands where you can get a cheaper room or dorm,” she said.

Mr Alexander said forward planning and going in “shoulder seasons” — the months either side of the summer season, which is typically between May and August — would also help travellers save.