Photo Credit: A&O Hostels
Oliver Winter is founder and CEO of A&O Hostels, the largest
privately owned hostel chain in Europe, with 39 properties in 25 cities
in nine countries in Europe.
When I was young, I discovered the power of travel to change one's perspective.
I wanted to explore the world, but I didn't want to spend all my money on accommodations. So I stayed in youth hostels.
Those hostels were economical but were an inconsistent mix, mostly catering to backpackers and run by nonprofit associations, churches or one-off local establishments. Although they provided a night's sleep, that was about the only thing they had in common with hotels.
And they certainly didn't work with travel advisors.
When I founded the hostel company A&O in 2000, I offered 164 beds. Only one was private, and the rest were shared. Today, we have over 30,000 beds in Europe: 85% are private (double rooms and family rooms), and 15% are dorm rooms.
And we operate economically in some of the most expensive cities on the Continent.
The secret of our success? B2B partners, including travel advisors, tour operators, corporate partners and school groups.
Over the years, travel advisors not only provided bookings, they provide insight. They help us be more professional and consistent in our offerings so we can reliably meet our guests' expectations. They are the experience experts, providing guidance to our guests on where to find a great restaurant, an art district, the best tours and allow us to concentrate on providing a truly affordable, "you know what you're gonna get" experience, with a strong focus on sustainability (we have been on a mission since 2017 to become net-zero by 2025).
Since we started A&O, we've experienced digital revolutions, a global recession, a pandemic and various climate events, all of which have substantially changed our business for the better. While consistency is one of our bedrocks, so is our ability to change. It has been key to our success and growth.
With us from the start
When we began, we accepted reservations by fax, and 90% of our business came through travel agencies. Today, like many travel businesses, the mix is closer to 50% travel professionals and 50% direct bookings. Although the percentage has changed, the sheer number of bookings coming through advisors has nonetheless grown substantially along with our business, and we still consider their guidance invaluable, opening us up to new audiences and reinforcing the importance of understanding guests' needs.
Today, 10% of our corporate team is made up of software engineers, a rarity in hospitality. These engineers are an integral part of our team, but they are not focused only on the direct bookings; they ensure that our booking platforms are fine-tuned to the needs of our travel partners.
With inflation and the rising trend of families wanting to travel together and having parents stay in the same rooms with their kids, hostels provide an ever more prominent role in providing accommodations in cities throughout Europe. Unlike home-sharing options, we offer exclusively family-friendly locations for guests and groups, ones that are close to attractions that cater to all generations.
Some of our family rooms can fit up to eight people -- not something that's easy to find -- and kids stay free. As the hospitality market tightens and flight prices increase, affordability has become all the more important, particularly for international trips. Working with travel advisors has been paramount to our success, and I'm confident that will remain so as we navigate this next travel season.