Tim Alpe, managing director of budget travel service LyLo. Photo / Dean Purcell
Tim Alpe, managing director of budget travel service LyLo. Photo / Dean Purcell
For decades, backpackers, youth hostels, and cheap flights have been associated with young people looking to see the world without splashing the cash.
But as people continue to battle the cost of living, and the travel industry continues to rebuild after Covid-19, budget hotels are fast finding a bigger audience. Rising costs and changes in accommodation services, are seeing more people moving.
“The cost of living is high, things are costing a lot more out of Covid, so I think people are being really, really smart about how they look at things,” Tim Alpe, managing director of budget lifestyle accommodation, Lylo, told Lorna Riley on the Herald’s travel podcast, Trip Notes.
“Whether they pick destinations where the New Zealand dollar goes further, which at the moment is quite difficult, or they try to go outside of seasons.”
Alpe, who is also co-founder of rental car and camper van business Jucy, said that innovation in the accommodation and vehicle rental space is also opening up a bigger audience for budget travel.
“But we’re seeing the clientele really changing. So gone are your days - I used to call them the 3 in the morning, Jägerbomb customers, out there partying the whole time.
“And that’s really changing now. Places that we have a budget accommodation, you’re seeing families, you’re seeing people who are coming and working from there and travelling from there, so there’s a real different change in customers.”
He said that with Lylo, which operates with pod-style beds in rooms, they have seen families come in and rent out a whole room with all the pods, which they had not anticipated.
Older couples also come to Lylo to rent private rooms, but still use communal cooking and activity facilities.
For those looking to go further afield on a cheaper budget, Alpe said that the main thing people should check is when it’s ‘tourist season’ in their chosen country, and find alternative times to go.
Other countries or parts of the world are making moves to attract more tourists looking to save money.
“Anywhere in Southeast Asia, there’s definitely a push in places like Thailand, places like Bali are really, really popular.
“South America is probably the most innovative place ever in terms of this new type of accommodation coming through. We get a lot of our ideas from South America. Hard to get there from here, but once you’re there, really affordable and, the quality of accommodation is really, really high.”
Budget all-inclusive packages are also becoming more popular, including in areas like cruising.
" I’ve spoken to people who’ve done cruises around New Zealand on big cruise lines, or up and down the islands up here, and they pay a set fee and it’s really, really affordable.
“So I think that idea is becoming a lot more of a popular option, not only for families, but for individuals and couples as well. When dollars are, when it is tight, you know exactly what you can budget for. You know exactly what you can save for.”
Consider purchasing a multi-trip travel insurance policy.
Listen to the full episode for more advice on budget travel, including what you can and can’t haggle on, why cheap accommodation doesn’t mean you are slumming it, and why last minute bookings are becoming more of a thing.
Trip Notes is an NZ Herald podcast hosted by Lorna Riley, a keen travel writer and enthusiast and host of Coast Days. New episodes are available every Tuesday.
