B&B Hotels & Hostels

The Bed and Breakfast and Hostel Accommodations industry expanded strongly before the coronavirus hit, reflecting growing consumer preferences toward affordable accommodation. Before the COVID-19 (coronavirus) outbreak, demand for industry services grew substantially, bolstered by the expansions of both domestic and international travelers. Moreover, industry demand is largely driven by retirees and price-conscious millennials, thus fueling the growth of hostel establishments in the United States. However, the industry has contended with challenges stemming from the pandemic since early 2020, which caused travel rates to decline drastically. In 2021, travel rates picked up gradually and this is expected to continue into 2022. As a result, industry revenue has risen at an annualized rate of 0.1% to $2.5 billion over the five years to 2022, including an estimated 14.3% increase in 2022 alone.