The best thing and the worst thing about this YHA hostel is its location from the rooms there is a magnificent view of the Matterhorn, the valley and the village of Zermatt. But it is a bit of a walk to get to the hostel.
Since no cars are allowed in Zermatt, you'll most likely be coming by train. To get to the hostel, walk along the main street, turn left at the church, cross the Matter Vispa river, take the second right (past the aprs-ski bars), head up the hill and the hostel is in a large Swiss chalet on Staldenweg. It will take a minimum of 15 minutes, but if it's snowing the pathways can get very slippery, especially if carrying luggage - it's easier to take the "Winkelmatten" local bus. Also, a money saving tip for coming by train to Zermatt is to buy a return to Brig. Coming from Interlaken, buy a ticket Interlaken-Brig-Zermatt-Brig since you have to go back via Brig, it's much cheaper getting the return.
Inside, the hostel has been newly renovated and has new facilities during the season it can often be full so it's best to book early. The chalet is large so it can be over-run with school groups, but the majority of rooms hold only two bunkbeds and screen out the noise fairly well.
Staying here is expensive since only half board is offered. CHF47 for bed, breakfast and dinner is not unreasonable for Switzerland but the food choice is limited and may not be to everyone's liking. There are lots of options in the village, albeit expensive ones.
If you're skiing, the YHA is closer to the Matterhorn Express cablecar station to Klein Matterhorn and Schwarzsee, but the other two hostels in town are closer to the Gornergratbahn station and the main BVZ station out of Zermatt.