Zostel turns 12: Here's how the hostel chain for backpackers grew with no celebs or ads

In 2013, a group of seven young graduates decided to take a bold leap. Inspired by Europe’s backpacking culture, they dreamt of giving India its own hostel ecosystem. That dream took form on August 15, 2013, with the launch of the first Zostel in Jodhpur. Building from scratch – the founders themselves checked in guests, cleaned dorms, and ran day-to-day operations.

As the brand completes 12 years in the hospitality sector, Zostel’s head of marketing, Pranavi Chhikniwala, explains, the journey wasn’t without hurdles. “We were the pioneers of the backpacking culture in India,” she says.

“We had no real examples to follow. We had to build everything from scratch—from infrastructure to trust.” The first hostel setup in Jodhpur was makeshift and had to be discontinued. But the real breakthrough came with their vision to go remote.

Building trust and overcoming operational hurdles

“We opened in Spiti (Himacal Pradesh) more than eight years ago, when there was no network, no road accessibility. Our team literally transported boards and supplies on local buses from Delhi,” she recalls.

Bookings were handled manually via phone, and team members relayed guest details to properties that had no internet. It was a logistical challenge, but also a testament to the passion that fuelled the early Zostel team.

As the brand expanded, Zostel adopted a clever model that allowed it to scale without owning property. Instead, it partnered with local property owners—people passionate about travel and hospitality—and helped them transform their real estate into Zostel-branded hostels. It was a win-win: owners gained access to a recognised brand, and Zostel ensured consistency, community, and quality across locations.

Though Zostel’s growth model works as franchise ownership, it must match the “social vibe” that defines the backpacking company. “Today, we receive over 500 applications each month from people wanting to turn their properties into Zostels. The common area must be functional. It shouldn’t look like a hotel. Every space has to enable connections.” 

Expanding the brand: Zostel Plus and Zostel Homes

As demand evolved over the years, so did Zostel’s offerings. The brand transitioned from a budget-focused perception to one centred on experiential travel. “We no longer call ourselves a budget travel chain. Our prices wouldn’t justify that anymore,” she says. This shift birthed two new verticals: Zostel Plus and Zostel Homes. 

“Zostel Plus came up around 2018–19 when we saw a few hostels with premium offerings—better design, space, and services. We wanted to differentiate those so travellers didn’t unfairly compare.” 

Meanwhile, Zostel Homes, launched around 2020–21, responded to demand from families and older travellers. 

“Homes let us cater to people who love social travel but can’t stay in dorms—like parents with kids. These properties are located in quieter villages, some you’ve never even heard of.”

Monetisation and community-driven models

On the monetisation front, Zostel is evolving while staying true to its roots. “We’re not focused on pushing paid services. We’re more about enabling travel,” she explains. 
The brand runs a volunteer programme where travellers can work in exchange for meals and stay. Its Content Creator Program has seen over 2,000 sign-ups, with 300+ creators contributing to Zostel’s digital storytelling. 

Branded T-shirts and bags are given to trip participants, and though limited merchandise is available for sale, “it’s not something we push aggressively”, she notes. New monetisation features, including possible membership models, are currently under development and expected to launch soon.

The marketing is entirely organic—free from celebrity endorsements or large ad spends. “We don’t run many ads. Our social media reach and engagement are 100% organic,” she emphasises. Influencers like Tanya Khanijow have collaborated with Zostel simply because they enjoyed the experience. 

“We are a community-led brand. Everything from our newsletter to Discord pages is about building connections.”

Local integration and cultural authenticity

Even as the offerings expanded, the essence remained the same: local authenticity. “Everywhere we work with local teams. From trip hosts to hostel staff, it’s always locals making the magic happen,” says Chhikniwala. 

This philosophy extends to Zostel’s Trips, too—curated, multi-day experiences across places like Meghalaya, Spiti, Kerala, Vietnam, and Bhutan. “Each trip has a local host who stays with the group. The itineraries are built by people from the region. That’s what makes them stand out.”

In FY 2024–25 (from April 1, 2024, to March 31, 2025), Zostel catered to approximately 306,000 travellers. Of these, 68% stayed in core Zostels, 20% in Zostel Plus, and 12% in Zostel Homes. The brand has grown its footprint to over 85–90 destinations across India and Nepal and is now expanding internationally. 

“We are opening a property in Southeast Asia this year,” Chhikniwala shares. “We already run trips in Japan, Vietnam, Georgia, Sri Lanka, and Bhutan. Our presence is growing, and so is the demand.”

Evolving travel trends and tier 2 & tier 3 cities

The post-COVID years brought a clear shift in traveller behaviour. “Experiential travel boomed. People were done just going to Manali or Rishikesh. They wanted local food, offbeat hikes, and cultural immersion,” she says. 

“That’s when destinations like North-East India made their debut in mass travel. Travellers now want to know the story of a place—not just see it.” As Gen Z and millennials seek purpose-filled journeys, Zostel’s community-first ethos continues to resonate deeply.

The traveller base, too, has shifted. While Tier 1 cities were once Zostel’s stronghold, Tier 2 and 3 cities now contribute significantly. “People in smaller towns are discovering that this is how India is travelling today—and they’re excited to join in,” she adds.

Twelve years since its founding, Zostel continues to evolve. But the heartbeat of the brand remains the same. “It’s always been about people. Whether it’s a solo backpacker, a couple on their first trip, or a family exploring Meghalaya, Zostel is where stories begin.”