Speaking to the Seattle Times, director of marketing in Western Canada for Hostelling International Shelbey Sy said: "Definitely, the private room is fastest growing in terms of demand."
Hostels are also choosing to treat visitors more like hotel guests by no longer asking them to do chores or be back in their rooms by a certain time, she added.
Ms Sy describes a new trend of "flashpacking" travellers who will often carry expensive laptops, mobile phones MP3 players.
Hostels have responded, she told the paper, by offering more amenities such as Wi-Fi or iPhone charging docks.
With over 100 hostels around the world Hostelling International says it offers an alternative to "bland motels" and "impersonal hotels".
The organisation is currently offering a number of deals including free breakfast for those staying two nights in their Sydney central hostel.
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