With time, the concept of a hostel has broadened, and now hostels accept guests of all ages, providing cheap but comfortable accommodation and a unique atmosphere that cannot be found in traditional hotels or holiday accommodation. Backpacker refers to the person travelling with a backpack.

While the terms are often used interchangeably, a hostel refers to the physical accommodation itself, whereas backpackers typically describes the demographic of travelers or, in certain regions like Australia and New Zealand, is used as a synonym for the lodging. A hostel is a budget-friendly, social accommodation where guests rent a bed (usually a bunk) in a shared dormitory with communal bathrooms, kitchens, and lounges. The "backpacker" label on a building often implies a more rugged, youth-oriented atmosphere specifically tailored for long-term travelers carrying all their gear in a single pack. In South Africa and Australasia, you might see signs for "Backpackers" rather than "Hostels," but the service remains largely the same: low-cost beds designed to foster cultural exchange among like-minded globetrotters. Historically, hostels were "youth-only," but modern hostels now welcome guests of all ages, offering private rooms alongside dorms while maintaining the core communal spirit that sets them apart from traditional hotels.