"The backpacker market is the last to drop if visitors to Queenstown drop," Aspen Lodge co-owner Sally Woods said.
"We've noticed a huge increase in the double and en suite room bookings because, with their budgets and currency exchanges, it works out cheaper here than motel rooms."
"Numbers may be down generally but people who come here on an OE have budgeted for their travels and have an idea of what activities they want to do and when. Activity bookings and pre-bookings are still strong."
Ms Woods and Mandy White have co-owned Aspen Lodge for their first year after managing the independent hostel for three and six years respectively.
Both from Bournemouth on the south coast of England, Ms Woods said when the opportunity came up to run their own business, it was a seamless transition.
"We had identified the ups-and-downs of the industry and the areas to improve on in the hostel, such as marketing and promotion around New Zealand, changing the logo and website, and upgrading the building's lounge and bathroom facilities," she said.
Ms Woods said they had noticed an increase of 65% in pre-bookings or inquiries via the Internet.
The remainder were either walk-ins or referrals by word of mouth.
Aspen operated at 85%-90% occupancy over a given year.
May and October were the quieter months but the owners had noticed the shoulder seasons were becoming shorter.
Guests were staying seven nights in summer on average and up to 14 during winter.
"Australians were huge this ski season, more than past winters," Ms Woods said.
"Europeans are about the same level all year and we have a huge Israeli base in the summer when their school holidays start or army training finishes."
Ms Woods, Ms White and fellow duty manager Tiffany Maxwell work a 13-hour day from 7.30am.
Tasks include check-outs and check-ins, organising the cleaning shift, doing the laundry, plus activity bookings and handling general inquiries.
"I think backpackers could have been described as a lower end of the market a few years ago, but the standard of hostels in New Zealand is a lot higher than people would expect," Ms Woods said.
The age of the clientele hadn't changed over the years though guests were slightly older.
"They earn a lot of money, come over here and spend. They still look for bargains but they want to do more with their money than less.
"Activities would be their number-one spend and, even if they say they don't, they still have money to go for their evening drinks."
