To celebrate the launch, the youth travel company is offering two people the chance to stay in the hostel, which features an eight-person dorm room.
The STA Travel Hostel will host live acts such as Wakefield-based band Skinny Living, and winners will be able to take part in yoga sessions and enjoy bacon sandwiches in the mornings.
The prize package also includes a ‘festival essentials’ goody bag, a welcome party and weather-proof daytime activities.
Glen Mintrim, managing director at STA Travel UK, said: "This is incredibly exciting and something we have been working on for a while.
"Music festivals are one of the most popular add-ons to travel itineraries for our customers so to be able to offer them a chance to stay in our first STA Travel Hostel at Bestival makes perfect sense."
Competition entries close on 24 August.
In July, Bestival's co-promoters announced their plans to launch an events agency, meanwhile frozen yoghurt brand Snog is among the other brands activating at this year's festival.
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