Even though I didn't start using them until I was in my 30's, I've had some of my best traveling experiences at hostels.
I back-packed through Europe a couple of different times and would specifically seek out areas with hostels because it was a way to connect with other travelers. Usually, you'd meet a whole group that had just come from the direction you were heading, and you'd exchange stories and recommendations that were invaluable.
Europeans, Canadians, and Aussies are huge travelers and many stay exclusively at hostels. It would be pretty inexpensive to set one up and promote it. Sounds like another great business opportunity.
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