In sputter-type negative ion sources, the negative ion currents and ionization efficiencies are very dependent upon the creation of a sputter crater and formation of an intense plasma glow. This effect has many similarities with the well-known phenomena of hollow cathode discharges (HCDs). This paper discusses the phenomenological model related to conventional HCDs, including modes with injection of external energetic particles. We propose that HCDs play a major role in sputter-type negative ion sources. In this study, we evaluate the phenomenology of a discharge with a hollow cathode and derive an analytical formula that defines the neutral particle density inside the cathode cavity and substantiates how the classic HCD occurs in sputter-type negative ion sources. The cathode pit geometry was revealed by optical microscopy. Volt–ampere characteristics were investigated in order to compare it to typical discharges with hollow cathodes. In sputter-type negative ion sources, known as SNICS, discharge characteristics and observed light glow inside the cathode pit after its formation were very similar to data published on HCDs. The HCD phenomenon explains how the cathode current increases by orders of magnitude after creation of the cathode pit. The HCD effect in SNICS and similar sputter sources compliments existing mechanisms of negative ion production, especially ion pair production close to the cathode surface due to low energy ionization based on the collision–radiation model. The wealth of information accumulated over the last century on HCDs can be used to describe and explain the phenomenology of physics and operation of sputter negative ion sources.