In 2020, COVID-19 affected almost all countries, it has governments faced with difficult trade-offs given the health, economic and social challenges it raises. More than half of the world’s population had experienced a lockdown with strong containment measures. The regional and local impact of the COVID-19 crisis is highly heterogeneous, with significant implications for crisis management and policy responses. This study is qualitative research adopted interviews to collect the data. The research focused on the changes in the operation of youth hostels due to the pandemic, the method which they comply to respond, and the future prospects of the youth hostel industry. As a result, it was found that youth hostel operators are slow in responding to crisis due to the lack of awareness, and do not have immediate effective methods to response to the impacts. According to the views of the three participants from the youth hostel operators, the strategies include cost reduction, reducing prices, modification of booking and cancellation policy, develop new customer group segments, revitalize of space and expand the alliance effect was comply in order to cope with the impact of the pandemic. It is suggested that the operators to emphasize on establishing an effective crisis management system with enhancing their awareness of crisis and risks. Developing customer from different categories is an issue to concern in order to avoid over relying on single customer group to make the youth hostel industry more sustainable.