How to Start a Backpackers Hostel

Having quit my job to start a backpackers hostel, let me tell you that getting into the backpacking business is less glamorous than what it appears. However, a job is only as fun as you allow it to be.

thcAfter setting up India’s first backpacker hostel and watching it fail (long story), I hit the drawing board again and started from scratch. 3 years and 4 hostels later (check it out and give us a like), I’ve had my fair share of ups and downs in the backpacker hostel industry. The best part for me at the end of the day is that I’m in control of my precious time and my job allows me to do exactly what I want to do at any point in time. Life is mostly a holiday (except when the toilet’s broken). A couple of times every week someone at the hostel confides in me that their dream in life is to open a hostel. So, let me break down this process to give you a glimpse into what goes into the making of a backpackers hostel..

1. Take the plunge

There isn’t a bachelors of backpacking (yet) and starting a backpackers hostel requires no eduction. In fact it requires no specific skill but once you’re done you will be a jack of all trades. A pinch of common sense should guide you well enough along this journey. Don’t sit on the fence with this decision. Life will pass you by. If you’re looking to start a backpackers hostel, nobody but you will be able to say whether its the right or wrong thing to do. Trust your instinct and do what you think will make you happy. Do it now. Don’t wait for tomorrow.

2. Hang with the hippies

Great. So you’ve decided to start a hostel. Now comes the question of where. This may come as a rude shock to you but your choice of location is the biggest factor that could make or break your business. If your stretch of beach isn’t popular, having the swankiest backpacker hostel will not bail you out of that hole. Don’t rush this decision. Try and backpack through your chosen destination first to see the World through the eyes of a backpacker. And while you’re backpacking through town, talk to as many people as you can. By the end of this exercise you’ll need to know who visits, from where, for how long and why. If you find sitting by the beach with a beer and chatting with fellow backpackers hard work, you might need to rethink this choice of profession.

3a. Find your dream house

Next comes selecting a house that will hold up against an army of rowdy backpackers. Taking 2 steps back, the purpose of your place is to enable backpackers to meet each other. A fundamental draw for backpackers is that your place will have to be affordable. As for enabling backpackers to meet, a common room is of paramount importance. While viewing possible houses bear in mind tiny details such as number of beds you can fit into the house without asking more than 8 people to share a bathroom (the biggest limiting factor). Although not obvious from the offset, your relationship with your landlord will be incredibly important too. Ensure that your landlord knows exactly what you plan to do with the house. As far as buying a house goes, remember that you’re in the backpacker business and not real estate. Limit your risk and stick with renting.

3b. Be the man with a plan

This step is to be executed at the same time as the previous step. Whether you like it or not, you will need a business plan. Plug the house rent, estimated operational expenses (electricity, internet, cleaner, etc), price per bed per night and your plan should give you the occupancy required for you to cover your expenses. Is this a reasonable number? From experience, try and ensure that you can cover all your expenses with an occupancy of around 30%. If that’s not possible,either your house rent is too high or your beds are too cheap. Fortunately you won’t have to reinvent the wheel and you can just use somebody else’s excel genius to figure out the finances.

4. Licences

This is the bitch. Get started as soon as you sign your lease agreement. Unfortunately the procedures vary from place to place and my advice will be useless to you. Get all your information from the horse’s mouth, do the right thing and cover your ass. Always.

5. Shop till you drop

Once you’ve signed the house lease and applied for your licences, you’re 60% there. The rest is the easy part. It’s time to get busy and start shopping. Bunk beds, lockers, rugs, curtains, mattresses, blah blah blah. The shopping list will drag into the hundreds and you’ll be ready to give up at numerous stages but you’ll have to soldier through it (or maybe thats just because there’s no love lost between me and shopping). Having done this a couple of times I’ve come to realise that ready made stuff will always be inferior and less durable to custom made stuff. Backpackers are experts at breaking stuff. However, custom furniture and fittings cost a fortune. If you’re opening your first hostel, get it from the store and aim at keeping your costs to a bare minimum.

6. Ready…Fire…Aim

Finally comes the most exciting part of the entire process – setting up the hostel. Seeing all your ideas come to life is incredibly satisfying. However, do remember that every day spent setting up the hostel is an expense because you’ll be paying rent and not earning any money. Get operational as soon as possible. Backpackers are awesome people and incredibly forgiving when they realise that you’re making a genuine effort to do something special. Don’t wait for your hostel to become perfect (3 years down the line, we’re just getting started).

Throw open your doors and let the good times roll..

Open your own backpackers hostel
 
 

Pictures from my first hostel in 2011

Building a reading corner

Library

Gardening 101

Garden

Branding, painting, etc

Front Gate

Somewhere to sleep

Dorm

113 Comments on “How to Start a Backpackers Hostel

      • Where in Vagator. I would like to open up my own hostel. I need to talk. Please reply back on

      • Hey… How much capital did you initially invest in the beginning?

  1. Isn’t that a little bit every backpackers dream, to have your own hostel?

    Oh, and had I been there I would have been more than happy to help you with number four ๐Ÿ™‚

  2. Useful content, you continually come up with the most useful stories and of
    course How to Start a Backpacker Hostel

  3. Hi Jason.
    Thanks for your comment. I am living and enjoying Australia actually but I am thinking about start a backpacker next year in my country, Spain. Your opinions will be helpfull for me

    • Hi Belen..only one thing to say to that – do it!
      Been 7 months now and its been quite a ride so far. Learnt quite a few lessons about running a backpackers hostel – email me in case you need any help with your business plan..

      • Hi Jason,

        I want to start my own backpacker. I live in Cape Town, South Africa. Is there any way you can help me with guidance and a business plan?

        Thanks and kind regards,

        Una

      • Hi Jason,

        A friend and I are currently looking into opening a backpacker hostel here in Australia, specialising in specific Australian tours.. Zoos, beaches, surfing etc.
        Just trying to find the right house at moment.

        I would be extremely grateful for any specific advise/business plans tips you are willing to share.. Its a little daunting but we both cant wait to do it.

        Cheers mate

        Love ya work

        Rod

      • Thanks a lot for the advice.
        My partner and I are interested to start a hostel too. It has been my dream to start a meaningful business that makes people happy yet profitable. However we have funding constraints which we are trying to sort out. Your kind advice on running a hostel will b much appreciated. Thanks!

      • Hi Jason
        I am planning to start one soon and have applied for the loan .afterwards plan to buy a place and start my hostel

        Please give me ur e mail as I would like some help in starting up

      • Hi jason,
        I am doing a project on starting up a bag packer in Sydney.

        It will be highly appreciable if you could be any help to me.

        Cheers

      • Hey Jason
        I am wanting to set up a backpacker’s hostel in goa next year. Still scouting for locations and trying to arrange more funds.
        Can u please help me out with a business plan, etc. Etc..
        Whatever info you are willing to share will b helpful
        Thanks
        Paresh

      • Hi Jason,

        Let’s talk Would love to pick your brain on few things.

    • hi Belen,

      I am really thinking to open backpackers , i read your comment and saw the mutual interest we share. I am actually looking for people to open a backpackers together, so if you are looking for people too then maybe we can have a discussion regarding this. also opening a backpackers in spain would be a great idea.
      you can mail me if you like its – sahiljindalind@gmail.com

  4. Am about to embark on an adventure this year – having just lost my job – and this idea has always been in my mind – myself being an avid traveller and I simply love talking to people from other cultures and places – thank you so much for this useful article!

  5. Great article! I’ve just gotten back from a backpacking trip in Burma and being a backpacker, I’m very keen to start my own budget hostel. Thanks so much for this gem!

    • Jon – looking to backpack through Burma in March, any suggestions about places to stay and things to do?

  6. Thanks for a good article! I also want to open a hostel… yet to decide where. How come you chose Goa?

    • Anette – I was born and brought up in Goa and Goa didn’t have a hostel until we got started, so it was a no-brainer. Good luck with your search. Let me know if you need any help..

      • which other part of India would you suggest to start a hostel today in 2016

      • Bangalore, Mumbai, Kolkata, Chennai for starters – tons of other places without any hostels at the moment

  7. Hi

    nice to read your post – i am just trying to decide on where to open one the hardest part for sure.. i am torn between the sun/water, snow/mountains or in the countryside and thats before i have thought about country!!

    Do you make an ok living out of it so far?

    Charlotte

    • well..its been 11 months and i still haven’t managed to pay myself a salary. but still – this doesn’t feel like work at all ๐Ÿ™‚

  8. Hi
    living in Toledo Belize and did some backpacking in Mexico and loved it! im having thoughts of opening a hostel in Punta Gorda since there aren’t any here however most tourist are just passing through to Guatemala. Do you think this would be a grt idea?

    • Hey Gail…It doesn’t matter if people are just passing through. What does Punta Gorda have to offer? And can you create a kickass hostel to ensure that people stay there and never leave? But it’s also important to take a look at hostelworld and hostelbookers to see what’s the current situation and how other businesses are holding up.

  9. Hi Jason,

    I’m actually wondering myself to open a backpack hostel in America Latina. I would like to ask you some stuff about the operating charges existing in this activity and how to count the potential custommers of the market.

    Can you answer me by email please?

    Cheers,

    Anthony

      • Hello mate,

        I am certain I need to open a hostel before summer next March in Amsterdam. I’d ideally want to open on a beach somewhere but from what ive read amsterdam has teh best occupancy rates in europe and also a longer average stay for guests so im following the numbers. The beach hostel will happily be my second hostel. I’ve stayed in a lot of hostels in the netherlands and spoken to a lot of staff and surprisingly the majority of them aer completely unpaid, just accom and food ( a lot booked through http://www.workaway.info) so if i put in a lot fo hours myself in the first year i can see staff costs being low. I would absolutely love any info you can help in regards to my business plan and what popped up for you that wasnt expected. Ive also worked in hostels in rome and greece and barely feel like this is working as i love travelling so much.

        looking forward to hearing from you

        Nic

      • All the best Nick. In terms of what wasn’t expected, there were tons of things. But you’ve just gotta keep your head on your shoulders and fix it. I’d be happy to help out if you’ve got any specific questions about it. Just drop me a note.

        Cheers

  10. Hi Jason,

    Great post! I am all inspired!!

    My partner has a holiday house which has a day spa attached on a large block of land in Capurgana in Colombia a little coastal town near the border of Panama. The location is really remote but a hidden gem. There is only access via boat or via air and there are no cars in the town. Its a real hidden gem.

    The business is not generating enough enquiry as it stands at the moment and I am in the process of putting together a business plan on converting the holiday house into a hostel with camping facilities. I would love any tips you have..

    I have a million questions:
    Is there any cons in having camping?
    Is a bar essential?
    Do you think food is essential?
    How do you get a place found ie on Lonely Planet, Trip Advisor, Travel Agencies?
    Is there a world wide back packing/ hostel association?

    Cheers – Jes

    • Jescinta,

      Good morning! I owned a tiny bar in Panama for a bit, and I found similar issues.
      I am currently in the United States, but would be very interested in visiting your Hostel in Colombia. Can you send me some details, or website? Thank you!
      Best Regards,

      Michael

  11. Great site!
    I love that you have followed your dream!
    Would you consider taking on a volunteer worker/employee for a few months?
    Thank you!

    Michael

    • Sorry Michael, we only hire staff from within the local community

  12. Very useful comment. I am in about 75% starting a hostel in Boudha, Kathmandu, Nepal. Just turned a large warehouse of 20ft by 60 ft into a five rooms with attached toilet. One room will be a common room and four rooms with three single beds each. Our family owns the house and we have more rooms to expand in future which are on rentals for now. What do you think about a no smoking policy? i used to volunteer in a non profit that used to do anti smoking program and believe in zero tolerance.

    • a no smoking policy is awesome. shouldnt be a problem at all. i just got back to goa from kathmandu – stayed at alobar1000 and the sparkling turtle. good luck in your venture!

  13. Hi!
    I’d like to open a hostel in Canada…I’m Italian, and I don’t know the right legal procedure?
    How is burocracy there? How can I start up a hostel?

    Thank U!!!

    Daniela

  14. How’s it going Jason! I stumble onto your site, as I am researching on how I can open up a backpacker hostel here in Singapore.

    Can you give me some advice on getting the business plan up? And what are the must have in the hostel.

    Thanks!

  15. Hi!!! Great to read your story mate and I’m looking to do the same thing in South America. The only thing that I would like to pick your brain about is how did you go with renting the hostel an staying there visa wise? Or are you a resident of India? And how much would you recommend to have saved to open a hostel (for example in India as that’s where you have done it) cheers Jason

    • i am a resident of india. would be best if you got an expert to advise you on the laws of the land where you plan to setup your hostel..

  16. Thanks for the straightforward article. Is it possible to still travel and run a hostel? Do you find somebody you trust to take over in your absence? Or are you grounded for good?

  17. Hi,

    My name is Joanie. I am currently doing a bachelor’s degree in counselling but Im not too sure if I enjoy what I am studying. I fell in love with Australia and I really want go back back there but I want a career first. My dream is to open a backpacker in Australia. I got few ideas but dont know where to start. I got heaps of questions to ask ya. If you could email me on my email joanie.ballard1@gmail.com Would be great cheers xx

  18. Hi. I wonder if you can give me any advise on setting a hostel up in spain. I have been researching this idea for some time now. I am looking to start out by getting an agreement with a landlord for a hostel and renting (whilst living there myself) I wonder if you have any information regarding this along with anything to do with getting the relevant permits or meeting any regulations and even what order you would go about this. For example do you get the rental agreement and property before all the permits etc. I do understand that there are different rules and regulations everywhere and so spain may not be your area. If you can not help, is there another website or any links that may help at all. I would really appreciate any help. Thankyou craig bradford

    • Hey Craig – just my 2 cents but would be best to find out the laws about the permit before signing any agreement. Once you sign the agreement ensure that there is a clause that requires the owner to help you out with whatever documents you might require to procure the permit. There should also be a way out of the contract for you if the license does not come through within a stipulated period of time. Cheers.

  19. Hey my dad own a ranch in perquin elsalvador. Central America. Its near the revolution war muesem half hour from the Honduras border. My dad being owner is a lot of head aches crossed. Do you think I can have a successful hostel. Id be the host im 26 moved to Australia when I was 2 years old I backpacked after not seeing my dad for 10 years he built a ranch. I can send you pictures.

    • Anythings possible man. Draw up a business plan and get going.. One option would be to have a written agreement with your dad (depending on your relationship of course)

  20. I was trying to figure out if you have a twitter page.
    Hi and thanks for the eye-popping blog post.

  21. Hi all there…

    I owe a property in Mexico of almost 1000 m2 with 3 building on it. Its 3 blocks from the busstation, 2 from the main supermarket and 5 from the zocalo. It would be perfect to open a hostel or camping on it. I managed a hostel for 5 years, but want to travel again. I am looking for someone (person, couple, friends) that would love to have their own hostel. I offer the place for the first year free of rent… after that we can see how to continue… contract for 5 or 10 years would have my preference, but also buying the place is an option. I am willing to invest an other $ 200.000 (mex. peso) to help the right people, with the right vision, to make this the best place possible. Its close to Chichen Itza, and some of the best cenotes in the world. Drop me a line if interested. Matt

    • Hi Matt,
      I am interested in learning more about your hostel.
      Thank you for contacting me.

    • Hi Matt…have you already found someone or or is this opportunity still available?

      Thank you, Mark

    • Seeing your comment 3 years later….wondering what came of your property?
      We are a family looking for the right opportunity to create a nice place for travellers to spend time.
      My name is Jen. Contact me if your still looking for the right people….

    • Hi Matt…I know its too late…4 years lol…but are you looking for new people to manage it?

  22. Hi Jason
    I too have dream of opening backpacking hostel or small hotel . Would love to talk to you .
    Sunil

  23. Hi Jason:

    Thanks so much for your great blog post. I feel a real strong sense of reinforcement after having read both the ups and down of starting a backpackers hostel. I’m personally aiming at Latin America with a specific focus on Costa Rica. In a few months I hope to head down and work in a few well-run hostels so that I can get a true feel for what it takes and whether or not it’s a total fit. I am running a property in NYC and I agree with you. It’s A LOT of work – especially when people flush too much paper down the toilet. Also the attention to detail is finer because people leave lights on. They will leave the door unlocked if they can’t be so bothered and other things people do when they are in a property that they don’t care about but if you’re serious about it, and can detach from those factors, like you said – the benefits are great.

    My question: You are the second person I heard of renting a property to run a hostel. How would that work with the landlord? Have you included a clause that will not let the owner cancel your lease? or— What if the owner suddenly decides he or she wants a cut of your profit? -or wants to raise your rent significantly? Have you encountered any of those types of issues and can you suggest how to possibly safeguard against them.

    Thanks again for your very organized blogpost!

    Gia

    • Hi Gia,

      You need to have all the details listed in your lease agreement with your landlord. However, do remember at the end of the day your lease agreement is just a piece of paper and you need to maintain a good relationship with your landlord. He needs to understand what you plan to do and needs to support this. Once you’ve got a good relationship going with the landlord, there’s a lesser risk of any unpleasantness. I’ve rented properties for 3 years now and although it has been a bumpy ride, it still works. Rental is beneficial to buying since you might not get sufficient return on investment if you purchase a (possibly expensive) property.

      Drop me a note if you need to get into more detail.

      Cheers,
      Jason

  24. Hi there tto all, tthe contents present at ths website aare genuinelly awesome for peopl experience, well, keeep
    up the nnice work fellows.

    My blog poset – homepage (Forrest)

  25. I’m planning to travel to Goa Oct 1st. I travel and blog. I’m curious to come over and stay at your hostel.. and probably put up in my blog and my page. itenerary details from 02nd Oct to 04 th oct.. let me know how to go about it. Thanks!!

  26. Hi Jason

    I am the owner of a hostel in Culebra Puerto Rico, a new venture for me with no previous experience, but a love for this tiny island. I have worked my buns off and still learning it was quite a sight when I got the hostel, it was basically 13 beds and a few rooms in horrendous condition. In the past year I have done a lot put in a kitchen, bathroom added beds and replaced every mattress “30 of them” I mostly use hostel world and booking.com and am now seeing light and the end of the tunnel.. Now that I have finished the essentials which in my book is mattresses and good bed linens and a super clean facility I need to improve the management of reservation and basic ‘under reporting of walk in”s” I am looking for advise on good software to manage reservations and advise on dealing with money from beds rented not showing up. Greatly appreciate any suggestions comments and advise. Nancy

  27. Hi Jason, am really happy to come across your post as i have been looking for ideas to help me set up my backpackers hostel in Masaka, south western uganda. Its so exciting that you are writing exactly what am going through at the moment. Yesterday i paid rent for a full year and bought 16 mattresses (the number of beds am planning to start with), and right now sourcing for bunks. However, am yet to decide whether to use metallic or wooden Bunks. Do you have any comment on what bunks to use? Is one advantageous over the other?
    please, i will be happy to hear from you.

    • Metallic over wooden any day. Bed bugs love wood and don’t get along with metal. Its been 3 years without a single bed bugs incident for us.

      Good luck with the hostel!

  28. Hi Jason,

    Really glad to come across your post. I am actually planning to start a back packer hostel in Singapore. Will you be able to share with me your experience by far? What kind of budget did you start off with and hows the profitability of it?

    Thanks!

    • Hi Shayne,
      I started with a tiny budget but given the rental market in Singapore, I doubt that’ll work. Be the first, be the biggest or be the best and you won’t have to worry about profitability. When I started – we managed to be all 3. Singapore has a lot of competition so it might not be so easy to find your spot. All the best!
      Cheers,
      Jason

    • Hi Shayne
      I am currently looking for a business partner in my hostel operations and please drop me a note or leave me with a contact detail if you would be interested.

      • Hi Shayne and Angelyca, same here. Are you guys still looking to set up one? Maybe we can have a chat over coffee one of these days. You can email me at a.asyraf@gmail.com. Thanks!

  29. Dear Jason,
    I am thinking to start up hostel in my country in Malaysia Kuala Lumpur.
    May I know what is the expected start up capital. (excluding the rental of the property)
    What is your main obstacle when you want to start up?
    How long the preparation did you make when you want to start up?

    Cheer,

    • Hi Neoh,
      The costs would obviously depend on the country where you plan to get started (costs of labour and material always varies) so it would be best for you to get started with your own business plan. The biggest issue for me was licenses but that’s just how India works. Preparation is a very personal decision and depends on how much you can afford. If you have a small budget, get started immediately so that you dont have to pay rent while still getting started.
      Cheers

  30. hi!
    After nearly two years traveling (All Central America) and working in a hostel in Guatemala I decided it was time to try and open my own place.
    I already have a target where to create the hostel i am young with big dreams and motivation but I have a funding problem so i need a loan or investors \ economic partners for that I need a business plan, maybe you can help me and give me tips about how to start a business plan and what should I include and consider.

    Thanks again for your blogpost its really good ๐Ÿ™‚
    shirley

    • Hi Shirley – start off with a basic business plan template and ensure you gather all the data you require. Your investors will also be very interested in what you have done in your life previously and how good your track record has been. They will be investing money in you and not in your business so make sure you sell yourself well.

  31. Hi i am from South Africa, i am currently trying to get started.
    your comments and information seem very interesting.
    i have a property that is very big and currently do student accomadation.
    However i am interested in doing a backpacker hostel.

    Good Luck

  32. Hello,

    I am incredibly interested in opening my own hostel. I have worked for the YHA in England for 5 years and i loved it.

    How did you find getting business visas etc? I would love to start a backpackers hostel in New Zealand but looking at the immigration website this is almost impossible for first time business starters to do this. Do you have any advice?

    Many Thanks

  33. Hi Jason

    Love your blog!!! You are living the life that I want. I know one day I will get there but it seems so far off at the moment.

    Did you have financial backing when you quit your job…lots of savings?

    Also you say its best to rent property to set up a hostel. Is this just to get things up and running? I understand it is less outlay of money but is it better to buy property/land when you do have the money?

    Look forward to hearing from you,

    Hannah

  34. Hi,

    Thanks for the great article. It really gives me a realistic idea as how to start a hostel. Just wondering what kind of visa do I need if I want to run a hostel in a foreign country ? Like Indian, for example ?

  35. Thank you for all this helpfull steps and advices. I have a concept that i want to make it happen and year 2016 will be the making of the first steps… I will keep your key words precious in my notebook.

  36. Just found your helpful and encouraging site. I have made arrangements to open a hostel here in historic Mulege, MX on the Baja peninsula, (Sea of Cortez side). It is an old, neglected family complex of 5 homes on a riverside property with a combined 10 bedrooms, 8 bathrooms, 7 kitchens, a nice ‘common room’ in the main house and large covered porches all over the place. Its a bit overwhelming but my plan is to 1st. – clean the lower property to offer camping to get some cash flowing. 2nd – get the cleanest units and main kitchen up and running to offer hostel dorms – and then as more units come on line also have private rooms/casitas (bungalows). The main challenge is to let the world know I’m here. There is only 1 paved road that transits the whole peninsula and I’m on it, the town has much to offer (history, beautiful beaches, snorkeling and diving, horsebacking to the ancient sites) but most travelers pass through without a glance. What are the best internet sites to list your hostel on? I know you’ve answered this before but maybe there’s an update. And thank you for your site, it lifted my spirits. I can do this!

    • I would suggest starting off with Hostelworld, Hostelbookers, Airbnb, Booking.com and any other accommodation listing site popular in Mexico. If your town isn’t available as an option, list it under the nearest town with a clear description of the location accompanied by pictures. The ramp up is always difficult but once you get some traction word of mouth should help you take it forward.

  37. What I am looking for is how to start a hostile, the regs and all. I have an old warehouse that has 2 apartments in it right no. The middle of the warehouse has small rooms and I would like to work this into a hostile, Where do I start with the regs and codes Thank ou,

    Michelle

  38. Have you just noticed how many ppl from how many different parts of the world have the same backpacker’s dream ? ๐Ÿ™‚ I find this so enchanting!

    Thanks loads for sharing your experience ; I am currently saving and travelling more or less a couple of months each year – also looking for a place for my little hostel. Just want to enjoy my 30’ies, as long as the travel bug keeps biting me ๐Ÿ™‚ then i’ll get on the move!

    Viva la vida!

  39. Thanks Jason for all the great pointers you have shared here. Certainly helped to clear the mystery shrouding the intricacies of opening a hostel in India, or anywhere else for that matter.

  40. Hi,i have been to goa twicw and stayed in hostel both times.i really enjoyed it,since then idea of opening a hostel is in back of my mind.i wanted to do it part time with my original job,but after your blog it seems very dificult,now i am thinking i should do this in partnership because a constant income is also a big requirement for keep investing in your dream.pls tell me if you have any advice for me,thanks

    • Hey Ravi – I’m glad to hear that you enjoyed staying with us at The Hostel Crowd. There’s definitely an opportunity in hostels, however doing it on the side would mean that you might not have the time to get your project to a standard that you are happy with. So I don’t think doing this part time is an option. However, this advice comes from a person who prefers to test the waters with both feet ๐Ÿ˜‰

  41. Hi there, Greetings from India. Me and a friend of mine, individually have backpacked through Thailand, Nepal, South and North India and western Europe. We both have a full time job and are into too much for opening up a backpackers hostel here. We have few places in mind. But, in the starting, we are thinking to go with the partnership with an owner just like you. Let me know if there is any possibilities!! (Or we can backpack to your location and have a talk about this over a beer!!!!). Looking forward to hear from you.

  42. Hi All,
    Would love to get some feedback on our idea. we are buying property (30 acres) already has zoning for a hostel/bunkhouse, restaurant and store and we will be applying for part of the property to be zoned for a dry campground, right on the river under tall trees. With nearly 1 mile of river front property and access, popular Sport fishing and kayaking. Access to hundreds of mountain acres for hunting, hiking, backpacking, horseback riding and even off road vehicles.
    We want to build a place in the mountains to Eco camping or stay at the hostel. Off the grid, with two wells, we will put in solar and it already has high speed internet. Community garden, some farm animals-including horses. It’s about an hour from snow skiing too, during the winter. Summer its 70-90 degrees, under the trees it’s cooler.
    Does this place sound like a spot you or someone you know may travel too, for a weekend or the whole summer?

    • Hi Stina,

      Sounds amazing. It would be even better once you’ve got a bunch of people from all over the world hanging out there. However, the biggest challenge is always marketing your property and ensuring that you can connect to the backpacker community and get the ball rolling. The easiest method of listing online might not work for an offbeat location so maybe you’ll have to rely on more traditional offline methods (word of mouth, tours, travel agents, etc) of letting people know that your place is out there and is amazing. Good luck!

      Cheers,
      Jason

  43. Hey Jason, I’m 19 years old and Goan too, I travel a lot. Currently at university but I’d rather start my own business. A backpackers hostel has always been a dream of mine, I have a basic idea of how they work but I still have a lot of questions about starting one. Would be a huge help if I could ask you a few questions.

  44. Pingback: Owning a Hostel is Anything but Hostile to Your Pockets | Victor Parker's Blog

  45. Hi Jason, This is debashish from India. it is good to read stories of people who follow their dream and become relentless and determined. I strive to be one of those people, and have already tried my hand on a travel startup in last 2 years. Been extensively travelling all over India, living in hostels and last few months i am getting hugely motivated to try my hand on the hostel business. It will be great to connect and take inputs from you, on how to go about this. Can you share your contact details, email, phone anything where i can express in detail?

  46. Hello! Nice read! How is hostel number 4 doing? I just started my mini hostel 6 months ago. Not making any salary yet but high season is yet to come. Its been a hell of alot of work to set it up and its not done yet. I have plans to construct more beds and improve facilities in there. So far if I look back its been improved so much over the past 6 months. And as you said you become a master of all traits (broken waterheater, electricity fails, leakages and so on). Its alot of daily hours I put into working but it doesn’t feel like a job. Its nice to feel you can decide everything yourself. That being said I feel like I would like to sell mine at some point to start another one with the knowledge I have now ๐Ÿ™‚

    • Hi Kallipo. Congratulation on your hostel. I am planning to open one in China. I am only in the earliest stage of researching so would really love to hear from the other new hostelier from around the world. It would be great if you could share your experience in running your hostel. Thank you and very best of luck with your venture. Looking forward to hear about your stories.

  47. Thanks for the article, articulate and efficient.

    I want to open a hostel as I like this lifestyle, I do airbnb in my apartment and I enjoy it… is it possible to open the hostel alone or you need business partners, do you know a website that functions as a backpacker’s forum?

    Many thanks.

  48. Hi there, I would like to connect with you to understand the business plan for setting up a hostel in India. I am thinking of setting up in Himachal Pradesh (Manali, Mcleodganj). Would be great if you could share some insights.

  49. Hi, This is one of the great blog. I would like to say thank you for your good idea to start backpackers hostel.

  50. Hi Jason,

    Thank you so much for sharing your experience. I am dreaming to open my own hostel in China and am researching about the possibility of making it happen. Your feature is truly refreshing and encouraging. Thank you. Has anyone here have any tips, advice in starting a hostel in China please? I would love to hear from you guys.

  51. How do I convince my parents as I am planning the same with all blue print ready
    And if you can share your email Iโ€™d

    • Hi Nitin.

      I’m looking for property to rent. Do you have more information about the property? Such as recent accounts, monthly rental, relevant business license for hostel, length of contract, floor plan and maximum capacity of the property, photos of the property etc.

      Best regards

      Wai

  52. Hey brother, very informative post I must admit. I run a farmstay by the name Enchanted Forest Farm at a beautiful village near Gangtok, Sikkim. Starting a backpackers hostel has been on my wishlist for a while. Alongside my farm, I also intend to open a backpackers hostel at my parents house(on a different floor, ofcourse) somewhere near Darjeeling. The house is by the main road with vehicular traffic. Do u think this can be a drawback? Also, are meals usually provided? If so, should the tariff per night include meals cost as well or is it charged separately? Please enlighten me brother. Thanks in advance.

    PS. If u ever plan on visiting Sikkim and need assistance, you can contact me. Cheers!

  53. Iโ€™m opening hostel had few queries
    1. Hostel registration comes under hotel or bed n breakfast category
    2. What license required before starting backpacker hostel
    3. Approvals and registration required form which departments
    4. What about GST registration
    5. Plz advise

  54. Great article. It’s been my dream to start a hostel for backpackers. But due to various other commitments I don’t have the guts to get my both my feet wet. I have a property in Ernakulam,Kerala which can easily accommodate 40 beds and am looking for some one with similar interest to partner. Any body interested in a conversation can reach out to me @ sshaker358@gmail.com .

    Cheers

  55. 91% OF ALL BACKPACKERS ARE MILLENNIALS AND EXTREMELY SERVICE ORIENTED THEY ALWAYS KNOW WHERE AND HOW TO FIND THE BEST DEAL THE GAP YEAR NEWBIE THE HARDCORE VOLUNTEER YOUNG COUPLESWANNA BE HIPPIE CUSTOMER PROFILE INSTAGRAMMERS BLOGGERS PHOTOGRAPHERS STUDENTS GROUP OF FRIENDS MUSICIANS VEGANS FOODIES YOUNG AT HEART YOUNG PROFESSIONALS WEEKENDERS TOURISTS RTW (ROUND THE WORLD) UNEMPLOYED YOGIS

  56. Great article planning to start soon here in India for a budget friendly stays .
    Thanks for sharing keep sharing

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