A more sustainable hostel network
There’s no denying that it’s been a difficult decade so far — for YHA, our customers, members and beneficiaries. The pandemic inflicted devastating damage. With hostels closed during lockdowns, we lost 90% of our income. The cost-of-living crisis and high inflation made the financial picture worse, raising our cost base and pinching customer purses.
Thanks to our supporters, the charity is getting through these straitened times. And we have a clear plan for recovery. By maintaining tight control of our costs, focussing on opportunities for growth and making pragmatic decisions that will ensure our sustainability, we’re seeing green shoots appear.
In 2023/24, following a review of the sustainability of our hostel network, we evolved our franchise offering and identified some hostels to transition out of direct ownership.
Since 1931, the hostel network has included hostels run by private owners or in partnership with other organisations. Today, this model enables us to attract entrepreneurial partners to buy and run sites under the hostelling umbrella. We went to market with around 20 hostels, with a target of 50% converting to franchise. At the time of writing, we have completed 12 sales, and we’re pleased to say that half will stay as hostels under franchise. In April, YHA Port Eynon became the first property to fall under the new franchise agreement, followed by YHA Boswinger, YHA Clun Mill, YHA Dalby Forest, YHA Rowen and YHA Holmbury St Mary. For those properties it has not been possible to convert to franchise, they leave the network instead — with the money raised helping to secure the future of those that remain. Though decisions around network changes are tough, they are necessary and bring the charity greater stability and a firmer footing from which to deliver impact for all our beneficiaries.
If you’re a YHA member interested in further details of network changes and our plan for recovery, please sign up to Company Membership to receive regular email updates from Chief Executive James Blake. Simply log into or create your personal online account at yha.org.uk. Once logged in, select My Profile and tick the box for Company Membership.
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