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In response to demand, as well as increasing competition between the rapidly growing number of hostels, the overall quality of hostels has improved across the industry.In addition to the increase in quality among all styles of hostel, new styles of hostels have developed that have a focus on a more trendy, design interior.Some HI Youth Hostels cater more to school-aged children (sometimes through school trips) and parents with their children, whereas others are more for travellers intent on learning new cultures.

In other parts of the world, the word hostel mainly refers to properties offering shared accommodation to travellers or backpackers.

While most hostels still close during the day they no longer require chores beyond washing up after self-catered meals. Sharing sleeping accommodation in a dormitory is very different from staying in a private room in a hotel or bed and breakfast, and might not be comfortable for those requiring more privacy.

Hostels encourage more social interaction between guests due to the shared sleeping areas and communal areas such as lounges, kitchens and internet cafes.

The phrase "boutique hostel" an often-arbitrary marketing term typically used to describe intimate, luxurious or quirky hostel environments.

The term has started to lose meaning because the facilities of many "boutique hostels" are often no different from hostels that are not referred to with that label.

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