Why Capsule Hotels Are Becoming Popular Now
A capsule hotel provides a compact private pod, a bed-sized space just big enough to sleep and unwind. Since its start in Japan in 1979, it has spread globally among solo and budget travelers.
Capsule hotels first appeared in Japan in 1979, addressing high land costs and demand for cheap, efficient lodging. Today they thrive in cities worldwide, especially in Asia-Pacific where space is at a premium. Guests pay less and get private pods near transit hubs and city centers.
Millennials, Gen Z, and solo travelers favor privacy, fast check-in, and simple stays. Capsule hotels offer these at a fraction of traditional hotel costs often cheaper per night than dorm beds, while still providing personal space.
Modern capsules often include mobile check-in, power ports, built-in Wi‑Fi, mood lighting, and occasionally small screens. These smart features appeal to tech-savvy travelers who expect swift efficiency and minimal fuss.
Globally the capsule hotel market reached around USD 263 million in 2024 and is forecast to hit USD 433 million by 2030 (CAGR ~8.8 %). Projections across all long-term sources range from USD 250 million to over USD 2 billion by the early 2030s depending on definitions.
Capsule hotels now serve travelers beyond Japan, in major cities and even inside airports. Brands like First Cabin in Waikiki and Now Now NoHo in New York opened in 2025, targeting design-conscious solo guests in transit-heavy areas.
There's growing demand for shared, minimalistic, efficient living spaces with communal social zones, capsule hotels hit that vibe. Travelers wanting comfort without extravagance enjoy the balance capsule stays offer.
Capsule hotels offer a range of shared and in‑pod amenities that balance minimal space with essential comfort:
Each sleeping pod typically includes:
Outside the pods, all guests can typically access:
While many capsule hotels advertise free Wi‑Fi, not all properties provide reliable internet inside the capsule. Some only offer Wi‑Fi in the common lounge, or the connection may drop at peak hours. In a survey, guests reported varying signal strength and limited access.
That means you may lose access once you’re inside your pod, especially if you need to browse, map your route, check bookings, or stream. If Wi‑Fi access is limited or unstable, consider carrying your own mobile data.
Eskimo eSIM ensures you stay online even when capsule hotels lack Wi‑Fi. With global coverage with no SIM swaps needed you can:
Capsule hotels provide individual sleep pods rather than shared dorm beds or full hotel rooms. They balance privacy with affordability.
Yes. Facilities typically include secure lockers. Pods and shared areas are cleaned regularly, and noise rules promote a respectful environment.
Most capsules are designed for one person. A few locations offer wider “double pods,” but solo travelers remain the primary audience.
Travel light due to limited interior space. Earplugs help with communal noise, and you’ll need to be comfortable using shared bathrooms.
Generally not. Capsules are often stacked, with ladders to upper levels. Accessible options are still rare.