On this episode of Destination on the Left, I talk with Oliver Winter, CEO and Founder of a&o Hostels, for an inspiring conversation about his entrepreneurial journey, from traveling on a shoestring budget to building one of the largest hostel brands in the world. We talk about his focus on being a cost leader, not a price leader, and how that translates to a guest experience that works for small pockets while still serving the needs of his guests. Oliver also shares his passion for sustainability and how his company has been able to move from an 18-kilogram per guest carbon footprint to just a 3.8-kilogram per guest carbon footprint.

What You Will Learn in This Episode:

How Oliver turned his personal travel experiences into founding one of the largest hostel brands in Europe
Why being a cost leader (rather than just a price leader) shapes a&o Hostels’ unique value proposition and guest experience
What makes the hostel guest experience distinctive, especially in terms of shared spaces, social atmosphere, and accommodation variety
How a&o Hostels attracts diverse customer segments―from student groups to families, digital nomads, and backpackers―and the distribution strategies that work for them
Why sustainability became a central focus for a&o Hostels, and how they’ve reduced their carbon footprint by over 80% per guest overnight
What’s next for a&o Hostels, including the big announcement of a new luxury budget brand to extend their reach and serve evolving traveler needs

Creating Value Without Compromise

One of the cornerstone philosophies for a&o Hostels is being a “cost leader,” not just a “price leader.” This means that they streamline operations and get rid of unnecessary frills while keeping the essentials, like comfort and safety, readily accessible. The hostels boast large capacities (an average of 800 beds per location), centralized operations, and shared facilities, striking a balance between affordability and a vibrant, social guest experience.

Rather than confining the traveler’s experience to private rooms, a&o focuses on engaging common areas, such as 24/7 bars, kids’ zones, and flexible working spaces. These communal amenities give great opportunities for people to connect, appealing to families, digital nomads, student groups, and backpackers. The model values shared spaces over luxury and, in doing so, builds community.

Evolving Guest Profiles and Modern Distribution Channels

a&o Hostels caters to a wide range of guests, with profiles shifting based on season and day of the week. Midweek guests are often student groups and school tours, while weekends and holidays attract families and independent travelers. The brand is found on major OTAs like Booking.com and Expedia, but has also cultivated a strong direct booking channel via their own website.

The flexibility in room types, from single or twin rooms for teachers and families to dorm-style accommodations for groups, further enhances their accessibility. This adaptable approach enables a&o to welcome anyone from school-aged travelers to budget-conscious business guests.

Sustainability as a Core Company Value

Beginning in 2015, Oliver and his team took a pioneering approach by closely tracking and reducing their carbon footprint per guest. Initially, a&o’s footprint was already lower than average (18kg CO₂e per overnight stay, compared to 25kg at home), primarily thanks to shared spaces and efficient building use.

But instead of settling, a&o set their sights higher. Through targeted operational changes—reducing waste, switching to renewable energy contracts, limiting disposables, and leveraging automation—they slashed their footprint by 80% to just 3.8kg per guest. What’s more, many sustainability initiatives actually resulted in cost savings, debunking the myth that going green is always expensive.

Resources:

Website: https://www.aohostels.com/
LinkedIn Personal: https://www.linkedin.com/in/oliver-winter-berlin/
LinkedIn Business: https://www.linkedin.com/company/aohostels/

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