Did you know that India’s hospitality sector is set to receive $1 billion in investments by 2028? Young travelers are driving this boom. But here’s the biggest problem: 370 million people aged 18-30 had no accommodation options designed specifically for them.
Hotels existed for every other demographic. Budget hotels, luxury chains, business travelers – everyone was covered. But young Indians? They were invisible.
The accommodation system was completely rigged against India’s key travel demographic. Until GoStops came along and built an entire category from zero. Let’s see how.
The Broken Reality of Youth Accommodation
Young travelers weren’t just looking for budget stays. They had completely different needs that no one was addressing. They had to settle for hotels designed for completely different needs. Here’s what they faced while traveling:
Problems with Traditional Hotels for Young Travelers
Hard to Find Budget Stays – Only discovery method was sorting by lowest price
Category Didn’t Exist – Hostel category wasn’t available on MakeMyTrip or Goibibo
No Community Spaces – Hotel rooms with no common areas to meet like-minded people
Outdated Technology – Room phones and traditional service for mobile-first users
India’s most tech-savvy demographic was stuck with outdated accommodation experiences. Something had to change.
The Community-First Revolution
While the market focused on traditional hospitality segments, GoStops saw India’s biggest untapped opportunity. They realized young Indians weren’t just looking for budget stays, they wanted tech-integrated, community-driven experiences that matched their digital lifestyle.
So GoStops built exactly what this demographic needed:
GoStops’ Solution for Young Travelers
Community-Led Stays – Common areas for like-minded travelers to connect
Complete App Experience – Everything digital – complaints, bookings, check-ins
Impulse Booking Ready – Perfect for spontaneous weekend trips
UPI-First Payments – Built for mobile-first, instant payment behavior
Budget Friendly – Meeting like-minded travelers while staying on budget
The transformation was remarkable. From 0 to 40 hostels with 2,500 beds and plans for 25,000 beds across 250 properties. They didn’t just build hostels but an entire accommodation category. But how exactly did they scale so fast?
The GoStops Scaling Playbook
GoStops’ journey is a masterclass in category creation that applies to any bootstrap business:
Start Smart, Not Big – They began with foreign backpackers who already understood hostels proving viability before educating Indians
Location Over Cost – They chose to locate where young travelers wanted to be
Know Your Numbers – In brick-and-mortar, they tracked exactly what remained after rent, salaries, and electricity
People First – They focused on hiring the right people to run each location independently
Crisis as Growth – When COVID crashed real estate prices, they expanded aggressively
Persistence Pays – “If you believe in something, just hang in there” through the inevitable ups and downs
Today, GoStops shifted from 99% foreign to 85% Indian travelers and not only survived COVID but used it to accelerate growth. But there was one more crucial piece to get right.
The Payment Infrastructure That Powers Impulse Travel
GoStops discovered that creating great hostels wasn’t enough. You need payment infrastructure that matches how young impulsive Indians actually book. As founder Pallavi Agarwal puts it: “This is a capital intensive business and cash flow really matters.”
PayU powers top hospitality businesses like GoStops where customer experience matters most. For young travelers who do “everything on their phone,” we ensure every payment builds trust through:
Payment Gateway – Accept 150+ payment modes with industry-leading success rates, 99.98% up-time & seamless integration across web and app platforms
PayU UPI Stack – Offer seamless UPI experiences for higher speed and conversions.
“It has been our payment gateway for a very long time. They were there when we were taking bookings on the website and they were there when we started taking bookings on the app.”
– Pallavi Agarwal, Founder, GoStops
When young travelers trust your payment experience, Wednesday travel ideas become Friday bookings.
Make Every Travel Impulse Count
GoStops built India’s largest hostel chain by understanding that young travelers needed community and technology. Result? 40 properties and an entire category created from zero.
The hospitality brands that win are offering frictionless payment experiences along with great stays. Because travel isn’t just about location anymore. It’s about experience. And that experience starts at checkout. That’s where PayU powers your growth.
PayU takes care of your payment infrastructure so you can focus on building amazing experiences.
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