a&o Hostels celebrates 2.5 million overnight stays in unprecedented year and looks positively towards 2021

It has been a difficult year for the hospitality industry and a&o Hostels, the biggest privately-owned hostel brand in Europe, was not left unscathed, having experienced a revenue decline of 60 percent during 2020. However, the brand managed to confirm 2.5 million overnight stays this year and opened three new hostels with many more in the pipeline, so maintains a positive outlook for the brand in 2021 and beyond.

During 2020, a&o had to be creative to secure overnight stays following a decline in tourism due to national lockdowns and international border closures. The brand confirmed 200,000 alternative overnight stays following collaborations with cities and social institutions to provide new and relevant offerings including ‘workations’ and long-stay solutions to keep business afloat.

Encouragingly, brand awareness has continued to rise significantly despite fewer overnight stays this year, which can be attributed to the comprehensive, early certified hygiene concept and a robust communications programme. Moving forward, sustainability and growth are a&o Hostels’ key priorities for the coming years.

Oliver Winter, Founder and CEO at a&o Hostels, which would have turned 20 this year, commented: “Our 20^th anniversary year was planned differently, but we made the best of it and can be really proud of it. Every a&o Hostel in every city was bookable at all times and thus visible which has helped the brand a lot. Hard work got us through this year and an extremely dedicated team and a recession-proof product are responsible for this success.”

Three new openings in 2020
As the hostel chain continues to grow, a&o celebrated three new openings in 2020, with new properties in Warsaw and Budapest, and a second house in Copenhagen. The company plans to continue its expansion throughout Europe, with a total of 50 a&o locations projected by the end of 2023, with proposals for properties in Lisbon, Istanbul, Rome and Reykjavik.

Europe’s emission-free hostel chain  
The Berlin-based hostel chain’s goal is to be emission-free by 2025. Sustainability has played an important role since the company was founded 20 years ago, and it will continue to be a top priority in 2021 and beyond. With an average of 5-6 kilograms of CO2 emitted per overnight stay at an a&o Hostel, this is already more than two thirds below the value of comparable standard budget hotels. Oliver Winter commented, “The average age of our guests is 27 – our target group is young and that means conscious and critical. There is no alternative to resource-conserving travel – people are becoming increasingly aware of their ecological footprint; if travel is to continue to be possible for everyone in the future, then everyone must also take responsibility. We started doing this a long time ago and will soon be unveiling new sustainability projects as well.”

Going digital

The already tech-savvy group has further optimised digitally-led processes and product offerings to make the brand more accessible. With 50 percent of its bookings made online, the hostel group has a goal of 70 percent by the end of 2021. It plans to make self-check-in kiosks and digital room keys via apps available at more locations by the end of next year and online check-in is already available at 80% of the group’s properties.

2021 – second half of the year in focus
a&o is looking optimistically into the future with the introduction of vaccines and a similarly strong travel demand for summer 2021. Oliver Winter concluded, “In the second half of 2021, we expect the market to recover, at least within national markets.” Starting in the spring, Winter also expects to see the first school and group trips again, which usually account for 35% of total business.

For more information, visit https://www.aohostels.com/en/