In 1912 in Altena, Germany, Richard Schirrmann created the first permanent youth hostel. It was inside Altena castle which had been recently reconstructed. The old rooms are on display now; the youth hostel has moved to new rooms, though it is still inside the castle grounds. These youth hostels now belong to Hostelling International (HI) a nonprofit organisation composed of more than 90 associations representing about 4000 hostels in over 80 countries. Hostelling International was formerly called the International Youth Hostel Federation (IYHF). These first hostels were an exponent of the ideology of the early 20th century to let (poor) city people get a fresh breath in the outdoors, so it was more of a youth movement and the youths were supposed to manage the hostel themselves as much as possible, such as with doing chores (which also kept the costs down). Since the children were supposed to go out and be active, the hostels were usually closed during the day. At one time HI had tried to limit the use of the terms "hostel" and "youth hostel" to only HI hostels, but today these terms are used for all hostels, whether or not they belong to HI
In the 1960's and 1970's a new breed of travellers arose, with some shift in motivation, not so much focused on going to the outdoors but to other (often distant) countries to meet new cultures and people, which included other travellers. The hostels were often the best (because cheapest) option to stay the night, but the rules were not in keeping with the new demands. So a new type of hostel arose which did not have curfews, daytime lockouts, or chores. This concept quickly spread all over the world. Most of these newer style hostels do not belong to HI and they often have bars and many of them have very high standards offering twin and double rooms as well as dorms. Since the older style hostels were starting to lose customers they began to adapt, abandoning most of the old rules. Still, alcohol consumption is often not allowed in many hostels, including most HI hostels. Some hostels cater more to school-aged children (sometimes through school trips) and parents with their children, whereas others are more for travellers intent on learning new cultures. Many hostels employ their long-term residents as desk clerks in exchange for free housing.
Similar accommodation can sometimes be found at YMCA's and on school grounds (e.g., campuses) when school is out for summer.
However, while this emphasis on those travelling to explore different cultures and places is emphasised in many hostels, particularly in cities or popular tourist destinations, there are still many hostels providing accommodation for outdoor pursuits such as hillwalking, climbing and bicycle touring. These are often small friendly hostels that retain much of the original vision.
In the UK, 'hostel' also refers to accommodation for homeless people, usually run by Housing Associations or voluntary organisations. Older-style hostels have dormitory style accommodation, newer hostels usually include en-suite accommodation with single-occupancy rooms.