From Hostels To Community: Zostel’s Enduring Leadership In India's Backpacking Evolution

It's been 11 years of Zostel in the travel industry. Tell how was the journey and how did the brand manage to own the 'backpacking travel' segment?
It's been an incredible 11-year journey for Zostel in the travel industry. As pioneers in the backpacking segment, we capitalized on our first-mover advantage and focused on building a strong community of like-minded travellers. Our strategic locations, ensuring accessibility to popular spots and uncovering hidden gems, have played a significant role in our success.

Affordability has always been at the heart of our offerings, making backpacking hygienic, safe, and accessible to young travellers. We've maintained consistent quality across all our properties, ensuring high cleanliness, safety, and hospitality standards. Our marketing approach has been largely organic, driven by word of mouth and the loyalty of our customers. Their feedback has been invaluable in shaping the Zostel experience.

Our brand's strong identity, rooted in adventure and community, coupled with innovative marketing efforts, has resonated with travellers worldwide. We’ve gone beyond providing accommodation by curating unique travel experiences that set us apart from other hostel chains. Adaptability and innovation have been key to our journey, and we continue to evolve based on traveler feedback and market trends.

Zostel remains committed to empowering local communities and nurturing a resilient and trustworthy travel ecosystem. As we look ahead, we’re optimistic about the future of travel and are excited to continue reshaping the landscape of travel and social interaction.

What do you think Zostel provides to its customers that attracts them to choose Zostel from its competition?
At Zostel, what truly sets us apart is the vibrant community experience we offer. We create spaces where travellers can connect, share stories, and immerse themselves in a sense of camaraderie. Whether it’s through our social events, group activities, or the lively common areas across our properties, we ensure that every guest feels part of a larger travel family.
Our commitment to quality is another key differentiator. While we started with a focus on budget-friendly accommodations, we've evolved to offer premium services and experiences. We may only sometimes be the most affordable option now, but we ensure that the value we provide far exceeds the cost. Today’s travellers are looking for more than just a place to stay—they seek enriching experiences and a reliable, community-driven environment, and that’s exactly what we deliver.
Lastly, our customer-centric approach keeps us aligned with the needs and preferences of our guests. We actively listen to feedback and continuously refine our offerings to enhance the Zostel experience. Whether it’s our hostels, premium accommodations, homestays, or curated trips, we remain committed to delivering exceptional value and unforgettable experiences to our travellers.

Please share the kind of revenue Zostel has been able to make last financial year and the projections for this year. 
Last financial year, Zostel experienced remarkable growth, reflecting the broader recovery in the tourism sector. Our year-on-year growth has exceeded 75 per cent, driven by the resurgence of domestic travel and our ongoing expansion efforts. We added 20 new properties to our portfolio, with plans to introduce around 15 more in the coming months.

As we celebrate our 11th anniversary, we’re excited about our continued growth and diversification. We recently launched our second exclusive merchandise collection, inspired by nature, which has been well-received by our community. This new venture is part of our strategy to strengthen our brand and provide our travellers with unique ways to connect with the Zostel experience.
Looking ahead, we’re optimistic about the future. The travel sector is on a strong recovery path, and we’re confident that Zostel will continue to thrive, offering exceptional experiences and expanding our presence across India and Nepal.

What is in the store for the brand in the coming months? Which all locations or how many properties you are planning to launch in the coming future?
In the coming months, we have exciting plans for Zostel. We’re gearing up to launch at least 15 new properties, expanding our footprint in key locations across India and Nepal. These new locations will also be featured on ZoTrips, offering travellers curated experiences that are synonymous with the Zostel brand.

Beyond new properties, we’re focused on enhancing operational excellence through product and tech integration. This will help us deliver even better experiences to our community, making travel more seamless, engaging, and memorable.
We’re optimistic about the future and committed to continuing our growth while staying true to the essence of Zostel—offering unique, community-driven travel experiences.

How does Zostel contribute to the local economy and community through its franchise model? Does Zostel also provide any support to the locals?
Zostel’s franchise model is deeply rooted in contributing to the local economy and community development. By establishing our properties in various locations, we create numerous employment opportunities for local residents, ranging from managerial positions to roles in housekeeping and hospitality. This not only reduces unemployment but also fosters skill development within the community.

We also play a significant role in boosting local businesses. Our presence attracts tourists, which in turn supports local shops, restaurants, and tour operators. We are committed to promoting local art and culture—many of our properties showcase local crafts and artworks, providing a platform for artisans to display their talents. Our guests are encouraged to immerse themselves in local experiences, further supporting the community.

Through our franchise model, we share extensive knowledge and expertise in the hospitality industry with our franchisees. This guidance on best practices, operational efficiency, and customer service excellence helps drive local economic growth. For example, in Pondicherry, we partner with a local pottery store that promotes sustainable living through workshops with our guests. In Hampi, we’ve collaborated with a local expert to offer rock climbing activities, and in Udaipur, we recommend a local hand-painting shop to our guests to help them explore the culture. These are just a few examples of many activities involving local communities.

We are also committed to community support. Zostel organizes community events and activities that foster cultural exchange between travellers and locals, enhancing the overall travel experience. We provide training and development opportunities for local staff, enhancing their skills in hospitality management and customer service. Additionally, we collaborate with local entrepreneurs for various services and products, encouraging entrepreneurship within the community.

Our franchise model allows local entrepreneurs to own and operate Zostel properties, ensuring that profits stay within the community and contribute to local economic growth. Through these initiatives, Zostel not only supports local economies but also enriches the communities we are part of.

'Experiential traveling' is picking up really fast in India. How is Zostel catering to this demand?
Experiential traveling is indeed gaining rapid momentum in India, and Zostel is at the forefront of this transformation. We understand that modern travellers are no longer content with just a place to stay—they seek unique, immersive, and memorable experiences that connect them deeply with their destination.

To cater to this demand, Zostel offers a variety of curated local experiences that allow travellers to immerse themselves in the culture, traditions, and lifestyle of the places they visit. From community adventures and volunteering programs to local hikes and city tours, every Zostel property offers distinctive activities that bring travellers closer to the heart of their destination.

Our Zostel Plus properties provide themed, experiential stays with unique designs and architecture, blending luxury with a strong sense of place. For those looking for more structured travel experiences, we offer curated itineraries through ZoTrips, which include all-inclusive trips across 30+ destinations in India and abroad. This September, for example, we’re launching an exclusive trip to Sri Lanka, designed specifically for the backpacking community.

We also host a range of social events, from music gigs to art and yoga workshops, as well as celebrations of communal festivals. These events foster a sense of community, allowing travellers to socialize, connect, and share their journeys with like-minded individuals.

Recognizing the growing trend of remote work, we’ve made our properties digital nomad-friendly, offering workstations and reliable internet access for travellers who want to blend work with their travel experiences.

Zostel was founded on the principle of redefining travel in India, and as experiential travel continues to evolve, we are committed to making unique destinations and special experiences even more accessible. This is how we’re catering to the demand for experiential travel in India and continuing to lead the way in this exciting new era of travel.