Most hostels that have closed by the YHA have, sadly, not become independent hostels which suggests that they were not financially viable on their own. Indeed the YHA has traditionally used profits from the really popular hostels to subsidise other hostels, though this is clearly changing.
A large organisation like the YHA will have overheads not faced by independent hostels. For example they need to make most or all of their hostels accessible to the disabled to comply with the Disability Discrimination Act. They will also need to employ staff on proper terms and conditions, whereas many independent hostels are run as family businesses or, I suspect, manage to operate more "informal" employment arrangements.
Yes, I take your point about costs of staff, I'm not sure you are 100% correct on the disability discrimination part, I've witnessed a few companies complying with that in extremely inventive ways and does it not also apply to small private concerns as well i.e independent hostels. Anyway I don't know, I'm raising the question rather than supplying an answer.
What I thought the articles illustrated was that
1) Not all hostels are being closed on cost grounds, Derwentwater is profitable and could cover it's costs. This points to the fact that the YHA has a policy and an ethos but it's not in keeping with the ethos established when it was founded, hence accusations of losing it's way.
2) The second link hinted that modernisation, centralised booking systems, professional management structures are still not enough to fill beds and the YHA is missing a trick in where and how it pitches itself i.e has lost touch with it's grass root users. Now I'm sure that they can nullify this by changing their user base or more precisely, widening it but in doing so they're neglecting the very demographic they were set up to serve. Again, accusations of losing their way.
I was thinking there must be parallels here with the CTC. On the face of it what they are doing sounds reasoned and plausible but it's a bit, trite & corporate in its thinking, or so I'm beginning to think.