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“It’s compounding the trouble we’re already in.” Pre-Covid, his cheapest shared room bed would be $39 a night, but it has now been fluctuating between $21 to $25. Adventure Hostels New Zealand/Supplied Brett Duncan, chairman of the New Zealand Hostels Association, says attention to detail in the industry has come a long way in the past 20 years. (File photo) “At normal average occupancy – 95 per cent – we would need to sell beds at $31 to break even, so we are selling below cost.” “Supply and demand (lack of) is forcing some operators to sink rates in search of cash flow, everyone cascades down behind them.”

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