The whole concept of youth hostels was started in Germany in 1909 by Richard Schirrmann and it took 40 years for the ideas to reach fruition in the India.

The idea was introduced in early forties by the Boy Scouts and Girls Guides of India, Punjab Circle and the first Youth Hostel was formally opened at Tara Devi near Shimla on 9 June 1945 by H E Sir Bertrand Glancy, Chief Scout and Governor of the Punjab.

As a result, a 120-bed Youth Hostel complex in Chanakyapuri, New Delhi with Administrative Offices came into existence.

Some State Branches and Units are in the process of procuring land for construction of Youth Hostels.

As its charitable objective YHAI stated it as "Our Mission is to enable and promote travel, tourism, adventure spirit, national integration and Education & health by providing hostels of good standards to millions of youth of limited means during their travel at affordable rates on a sustainable basis and by organizing adventure and educational events and to develop understanding among youth about social & developmental issues".

Significant modernization of hostels had occurred during the 2000s but by the late 2000s it became clear to YHAI that it needed to change as the stresses and strains of running what was a large organisation began to show on what was almost entirely a volunteer-run body.

As well as upgrading facilities in existing hostels, other experimental approaches to attracting young travelers were made.

The aim of the exercise was to reduce borrowing and to provide funds for re-investment into the network.

The hostels involved were not necessarily poor performers but ones where the amount of investment required to bring them up to a desired standard was excessive, or in some cases because the site value was very high.

Individual (Prices inclusive of GST and Postage charges) Note: Calendar year is applicable for YHAI memberships i.e. January to December.

Institutional membership (Prices inclusive of GST) The consumption of alcohol on hostel premises has never been allowed since the inception.

Such rooms are a means of being able to offer cheaper accommodation for large numbers of people and typically contain 4 – 8 beds.

With the YHA's modernising efforts and its attempt to widen its target market many hostels now offer private rooms in sizes suited to couples and families.

As of March 2009[update] YHAI operates 190[1] hostels and bunkhouses in addition to over 30 camping barns.

One aim of the YHAI is to support "sustainable use of the countryside, youth hostels and their local communities".

These state units also elect the majority of the National Executive Council Meeting (NEC) delegates.