// Workers AI · dad joke modeWhat did Zostel say to its host? "You're a great place to stay
 | This article contains promotional content. (May 2018) |
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| Type | Privately held company |
|---|---|
| Industry | Hostel Tourism Backpacker tourism |
| Founded | 2013 |
| Headquarters | Gurgaon |
Area served | India, Nepal, Thailand and Europe |
| Products | Zostel Hostels Zostel Homes Zostel Escape Trusted by Zostel |
| Website | www |
Zostel is a hostel chain with over 95 locations acrossIndia, Nepal, Thailand and Europe.[1][2]
History
[edit]Zostel Hospitality Pvt. Ltd was established in August 2013[3] by seven co-founders,[4][5] who initiated their venture with the launch of the first Zostel in Jodhpur, Rajasthan on 15 August 2013.[6]
ZO Rooms
[edit]In November 2014, the founders launched a new project called ZO Rooms, which aimed to provide budget-friendly hotel accommodations and aggregate hotel rooms.[7][8][9][10] There were reports that ZO Rooms was acquired by rival OYO Rooms,[11][12] in an all-stock deal in December 2015, which was later denied by OYO.[13]
Zostel offers various accommodation options such as dormitories and private rooms.[14]
ZO World
[edit]In 2025, on its 12th anniversary, Zostel announced the launch of “Zo World,” a travel-tech platform extending beyond hostel operations.[15] Zo World includes several parts:
- Zo Trips, a travel planning service that covers flights and local activities, with a projected annual revenue of ₹1,500 crore
- Zo Villas, a network of around 300 vacation homes
- Zo Houses, co-living accommodations aimed at digital nomads and creators
- Zo Digital, an artificial intelligence system designed to provide rewards and community engagement features.[15]
Business Structure and Financials
[edit]Zostel operates through a franchisee-owned, franchisee-operated (FOFO) model, where individual franchisees own and manage each property according to the company’s guidelines.[16] The company charges a commission of 21–30% on booking and food and beverage revenue from its franchisees, and provides operational support and guidance.[16] According to reports, Zostel records annual accommodation bookings of about ₹166 crore (approximately US$20 million), with an estimated year-on-year growth of 40–50%.[16] The strategy of the company is to focus on smaller urban areas across India, including Tier-II, Tier-III, and Tier-IV cities, rather than concentrating only on major tourist hubs.[17]
References
[edit]- ↑ Sehgal, Kunal. "India's first chain of backpacker hostels is attracting some serious money". Quartz. Archived from the original on 13 November 2017. Retrieved 8 July 2017.
- ↑ "IIM, IIT students set up Zostel for backpackers". The Hindu Business Line. 9 February 2014. Retrieved 8 July 2017.
- ↑ "IIM, IIT students set up Zostel for backpackers". The Hindu Business Line. 9 February 2014. Retrieved 8 July 2017.
- ↑ "IIM-Calcutta students set up backpackers' hostels in Rajasthan". www.hindustantimes.com/. 14 February 2014. Retrieved 8 July 2017.
- ↑ Banerjie, Monideepa (27 February 2014). "Why these IIM-Calcutta grads do not want placements". NDTV.com. Retrieved 17 May 2025.
- ↑ Ghoshal, Somak (6 September 2014). "Zostel: Passion for travel". www.livemint.com/. Retrieved 8 July 2017.
- ↑ "Business service providers betting big on startups with great deals – The Economic Times". economictimes.indiatimes.com. Retrieved 2 December 2015.
- ↑ "Budget hotel room aggregators eye pacts with offline travel agents | Business Line". thehindubusinessline.com. Retrieved 2 December 2015.
- ↑ "ZO Rooms has a room 'available' for every traveller | Business Insider India". businessinsider.in. Archived from the original on 8 December 2015. Retrieved 2 December 2015.
- ↑ Singh, Rajiv (4 October 2015). "Virtues of a large founding team: Why many digital ventures are starting up with many cofounders". The Economic Times. Retrieved 8 July 2017.
- ↑ "The curious case of Oyo's Zo buyout – Times of India". The Times of India. Retrieved 8 July 2017.
- ↑ "The Oyo-Zo Rooms Acquisition Deal Is Falling Apart – Inc42 Media". inc42.com. 17 December 2015. Retrieved 8 July 2017.
- ↑ "The deal that never was: OYO says it didn't acquire rival ZO Rooms after all – Tech Crunch". techcrunch.com. Retrieved 29 May 2018.
- ↑ "Discover Affordable Adventure: Embrace Zostel Lonavala's Charm! punenews.org.in". punenews.org.in. Retrieved 18 May 2025.
- 1 2 "Zostel goes global, celebrating 12 years… with Zo World". The Economic Times. Retrieved 18 November 2025.
- 1 2 3 "Hostel chains find their footing in India with a premiumisation push". Fortune India. Retrieved 18 November 2025.
- ↑ "Indian hostel chains aim for global expansion amid rise of digital nomadism". Business Standard. Retrieved 18 November 2025.