It’s Fun to Stay at the YMCA: Asian FITS in Youth Hostels

Research Objective

The rise in the number of fully independent travelers (FIT) has certainly created new tourism trends in Europe, as in other parts of the world. Knowing this group’s choice of destination and type of accommodation are therefore among the most important concerns of travel-related businesses.

As one of the top establishment types catering to free independent travelers, youth hostels need to understand the effects of the increase of FITs on their businesses. It is also necessary for trade players to distinguish the changing needs of FITs and the segment’s future growth potential. Hence, we put forward a four-section study of FITS coming from the Asia Pacific, today’s emerging tourism-driver.

1) First, we will look into the general trends of Asian FITs in the Nordic countries, a review of the pattern of events in Asia that has brought about the growth of FITs and has shaped the travelers’ interests.

2) Second, we will conduct 30 focus interviews among Asian FITs in order to determine this segment’s characteristics.

3) Third, we will seek the reasons why FITs choose to stay in youth hostels. In order to achieve this, we will assess the features of youth hostels and see how they cater to the preferences of independent travelers.

4) Based on the first three sections of the study, we will present a forecast of how the FIT segment will influence the youth hostel business.

Research Framework

The study will contain the following:

Section One: Asian FITs: A Snapshot
This section will provide an illustration of fully independent travelers in the broader context. Among the topics that will be included are:
- Overview of Asian FIT statistics
- Socio-economic state of Asia Pacific
- Tourism policies in Asia Pacific countries Section Two: Asian FIT Profiles
It is necessary to know the characteristics of a specific market segment in order to provide their needs. This section will discuss the following:
- Socio-demographic characteristics of FITs
- Destinations visited
- Activities embarked on by FITs
- Travel preferences of FITs (length of stay, booking preferences, travel companion, etc.)
- Accommodation preferences (aside from youth hostels)
- Trip expenditures
- Motivations to consume products

Section Three: Youth Hostels for FITs
We will look into the features of youth hostels and evaluate how these fit to the preferences of independent travelers. The discussion shall include:
- Rates in youth hostels
- Services offered and amenities available in the establishment
- FITs’ preferred establishments

Section Four: Forecasting
After assessing the general trends and exploring the characteristics of FITs and of youth hostels, we will present a forecast of how the FIT market segment will affect the business of youth hostels. This section will tackle the following topics:
- Forecast of changes in the future needs of FITs
- Projection of number of visitors and turnover in youth hostels
- Features in FITs’ other preferred establishments that may be adopted by youth hostels
- Recommendations

Research Methodology

The team behind Royal Intel has conducted studies on selected markets in Asia Pacific since the beginning of the millennium and has worked on a range of travel-related campaigns. This research will be led by the Research Manager together with two Research Analysts.
Our team shall:
- Comb through secondary research materials such as data from the statistical databanks of Asia Pacific countries, as well as information from news articles, previous studies and websites.
- Hold interviews among independent travelers and youth hostel managers.

Focus Interview Parameters

Royal Intel will conduct in-depth focus interviews with 30 independent travelers regarding their traveling preferences. The clients will be invited to formulate and suggest questions they would like to be raised in the interviews.
- Socio-demographic characteristics of FITs
- Popular destinations
- Preferences when traveling (airline, source of information, booking, length of stay, traveling companions)
- Accommodation preferences (amenities available, services offered)
- Favorite hostels
- Motivations to consume products
- Travel expenditure

Time of Completion

The study will be completed within a five months of project initiation and will be presented digitally in PDF format.