May 2026 Hostel Update
May was strong: occupancy was good, Memorial Day gave us a nice boost, and a 2-day whole house rental at the beginning of the month let me stay on vacation a little bit longer and helped the revenue numbers.
May was strong: occupancy was good, Memorial Day gave us a nice boost, and a 2-day whole house rental at the beginning of the month let me stay on vacation a little bit longer and helped the revenue numbers. I also finally raised prices on our dorms. For now, it’s just for Thursday/Friday/Saturday nights ($10 more per night), but it may eventually become the new base depending on how it goes. Can’t say that raising prices when you still have plenty of open beds isn’t a bit scary, but it seems like the right play.
It is kind of hard to determine how it’s going. No one has complained to me about prices, but anybody who would complain likely would book somewhere else, and I don’t have any way to quantify that. Still, it feels like a fair price. I heard Tim Ferriss say a long time ago that when he hosted a conference, he charged an exorbitant price (I don’t remember exactly, but thousands of dollars), and then his goal was to make it so good that people still felt like the price was a steal. I like thinking about it that way, even if my prices are in a different stratosphere. I never wanted to be the cheapest in town. I want to be a reasonably priced place to stay in Asheville that gives you way more value than you could have guessed. I think we’re doing that.
Also pricing related, I’ve been dealing with this fun bug of sorts with Google Hotels search. It’s probably been happening for a while, but I just picked up on it. A fun quirk of being on a bunch of different sites and then having your own property management system is that it doesn’t always show up everywhere exactly how you want it to. Google Hotels search defaults to 2 people. Great, we love 2 people. For Booking.com and Hostelworld, it shows the price for 2 bunks, but for my site/booking engine, it shows the price for private rooms. At times, this can be a big enough difference to send folks to those other sites, regardless of whether they intend to book a private room or not. With the higher bunk prices, it’s only an issue four days of the week, but it’s still annoying. My PMS support team is aware of my complaint and has “added it to the feature request list.” Unfortunately, since I spent time working in software support, I know that usually means “go away, please thx.”
We started a weekly yoga class on our back porch this month. I don’t love planning events, but guests do often show up and ask if we have things going on. It is a hostel thing, after all. I don’t think we’ll ever be the hostel that has events every night, but I do want to build more easy ways for guests to connect with each other and feel like something is happening here beyond just a bed for the night.
For me, starting events from scratch is intimidating. There’s no existing momentum to build on, and tbh: hosting something that no one shows up to is a special kind of humbling. The fear is that you put in the work, coordinate with someone, tell people about it, set the space up, and then everyone collectively decides they’d rather do literally anything else. Not ideal for the ego.
So how did it go in May? Not great. For the first class, we had 2 people. For the second class, it was literally just me. The teacher who had those first 2 classes was cool about it and enjoyed the reps, but some of these teachers have to drive a bit and want to make it worth their while. We’ve added a minimum 4-person class size to respect the teacher’s time. We also need it to not rain. Due to a combination of both of those factors, we canceled the last 2 classes of May. So, if you’re keeping count, there was one (1) student not named Ryan for the month of May. Still, I do think there’s something worth pushing through here. Events are hard because the payoff usually comes later. One lightly attended yoga class probably doesn’t change much. But if we can build the habit, get guests expecting it, and slowly make it part of what people associate with staying here, then it becomes part of the experience.
Spoiler alert - we did have 6 students for the first class in June so….progress?
May Stats
Early on in the month, May wasn’t looking that strong, and I was getting a bit worried. But my internal dashboards were still showing green YoY, and I was confused. Then I looked back at last year and realized I had forgotten how tough May 2025 was. The entire first half of the month last year had 15 guests. Asheville still wasn’t the most desirable place to travel to (or at least tourists seemed to think so). So, by comparison, this May was awesome. Really large jumps from last year and nice steady growth from April. It ended up being our 3rd best revenue month ever. The takeaway: don’t freak out at the beginning of the month, especially given how late our guests book. More on that below.
May stats
- Occupancy rate: 26.3% (+15.3% MoM, +50.1% YoY)
- Total Guests: 95 (+8.0% MoM, +53.2% YoY)
- Total Guest Nights: 200 (+9.3% MoM, +39.9% YoY)
- Revenue: $10,476 (+10.0% MoM, +74.1% YoY)
Guest Snapshot
New segment alert!!!
I thought it’d be cool to take a look at the type of guests who stay with us. Some of it is raw data from our PMS, and some is anecdotal from my brain. Let me know what would be interesting to see!
May guest snapshot
- Youngest Guest: 18
- Oldest Guest: 78
- Median Age: 31.5
- Hosted guests from 7 countries: Australia, Canada, Switzerland, Germany, India, Netherlands, and the US
- Average Stay Length: 2.4 nights
- Median Booking Lead Time: 3 days
May Marketing Overview
Google Ads — Hostel Keywords
- Clickthrough Rate: 16.9%
- Cost Per Click: $2.99
- Daily Spend: $18.77
Google Ads — Whole House Rental Search Terms
- Clickthrough Rate: 7.34%
- Cost Per Click: $1.84
- Daily Spend: $4.42