Price isn’t everything, even for budget travellers

There was an interesting choice of headline in the Weekend Australian on Saturday atop a piece about five-star hotels dropping their room rates to beat the credit crunch.

“Five-star hotels in reach of backpackers” was the paper’s somewhat disingenuous summing up of a trend which has seen 30 per cent discounts in Sydney and rooms going for as low as $149. It helpfully points out that is only $30 more than the price of a double room in Sydney Central YHA.

Leaving aside the fact that $149 is still well above the budget of your typical backpacker, the piece draws the mistaken conclusion that price is the deciding factor when they choose their accommodation.

It may seem a contradiction in terms, but independent travellers are social creatures, who like nothing better than sitting around chatting to their peers about where they’ve been, where they’re going next, and where to stay when they get there. These conversations will start over breakfast (usually around 12pm) and finish in the bar several hours later, tongues liberally oiled by Jager bombs.

Now you might be able to do all of those things at the Hilton ($189 on Friday night, according to The Australian), but it’s not quite the same when the person you’ve buttonholed to keep you company is a fifty-two-year-old shoe salesman up from Queanbeyan for a conference.

It’s no coincidence that the most popular hostels in any given backpacker hub are the ones with the best parties. Sure, those on a really tight budget might plump for the cheapest, but they’ll still spend most of their time in the bar of the busiest place in town, wishing they could afford to join the action on a permanent basis.

And that’s never going to be at the local five-star, no matter how cheap it gets.

By Martin Lane  ·  June 1st, 2009 at 2:00 pm

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Comments


  1. Neerav
    1 Jun 09
    2:50 pm

    2. Your article is spot on Martin

    When I go on holidays such as my recent backpacking trip to NZ, chatting with people from different countries, learning about their culture etc is one of the best parts of the trip

  2. greg cole
    2 Jun 09
    11:43 am

    3. Bollocks! If the Hilton and a good hostel achieved price-parity the Hilton would win every time.

  3. Neerav
    2 Jun 09
    11:56 am

    4. Greg you just dont get it

    To use an analogy

    Hotels like the Hilton = Maisntream broadcast media

    Hostels like YHA’s, backpackers etc = Facebook, Twitter etc

    The social element is key, price comparisons between the two are irrelevant

  4. greg cole
    2 Jun 09
    12:19 pm

    5. Neerav: Course I don’t get it. But then I’m such a dick that I didn’t realise people could sleep on a double-twitter with nice facebook sheets; or luxuriate in the privacy and comfort of social networking after a long flight. Or that the conversation regarding the price of a bed was actually about social networking on a computer.

    Thanks for the heads-up about price being irrelevant in the budget market. A revelation if there ever was one.

  5. Missy
    2 Jun 09
    1:23 pm

    6. While I agree with the article, it does make me wonder as to how Hostels/Backpackers justify a price that is now comparible to 3-4 star hotels. Are they charging for the social atmosphere that such an establishment boasts? Certainly the rooms and services they provide aren’t worth it. I’m dissapointed that cheap accommodation seems to be a thing of the past, no matter how much socialising is involved.

  6. Anonymous
    2 Jun 09
    2:57 pm

    7. I agree Missy.

    I think hostels should drop their rates to retain their backpacker customers and increase the price gap between a big comfy bed, television and privacy in a hotel and BYO sleeping bags and a dorm in a hostel.

    After all, backpackers can still visit hostel bars for entertainment so who’s to say they won’t opt for a bit of luxury for their accommodation if the price isn’t that different?

  7. vince
    24 Jun 09
    3:30 pm

    8. I think for independant travellers , hostels have nothing to worry about , but when it comes to couples who may be driving around Australia , a cheap hotel will win out everytime .

  8. David Whitley
    24 Jun 09
    6:54 pm

    9. There are many reasons why backpackers choose a hostel. Sometimes it’s about the sociable aspect – particularly in destinations known for their party vibe (ie. Airlie Beach, Hervey Bay, Cairns), the cities or places that are definitely part of the backpacker scene rather than the mainstream (ie. 1770).

    But the bits in-between? I don’t think so – it’s price that counts. Certainly, double/ private rooms in hostels are probably priced too high. Usually there’s no difference between the cost of a double and good quality motel/ three star resort etc.

    And I think hostels need to be wary about that pricing, because if the Hilton is available for roughly the same price, people will start to ‘treat’ themselves here and there. Any hostel charging more than $60 (maybe $65) for a private room should be seriously rethinking that policy. I recently travelled down the QLD coast, fully prepared to stay in hostels (but private rooms – don’t do dorms any more). It turned out that I could usually get a good motel/ resort room for almost the same amount every step of the way.

    Also, in places such as Hervey Bay and Airlie Beach, the friends are made in the 4WDs and on the boats. There’s no need for the hostel rent-a-friends as you’ve just spent 2/3 days bonding with them. I think most would sooner take the higher grade accommodation and just agree to meet everyone in the backpacker bar.

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