Today you can find many ideas for starting your own business. One of these ideas is opening a hostel. So what awaits the businessman, if he decides to start this particular business, and how to open a hostel?
BUSINESS ON HOSTELS
Today hostels are not a rare phenomenon. In almost every city in the U.S. you can find 20-30 decent hostels. In contrast to the hotel hostels provide the client with a smaller number of services, but you have to pay less for accommodation. In this regard, hostels are very popular institutions, especially among young people. Recently, the relevance of hostels has increased several times. After all, hostels are convenient. And their convenience refers not only to customers but also to the owners of hostels. After all, if he knows how to organize a hostel, then soon the institution will begin to bring good profits.
Hostels are divided into three types:
- Youth;
- With a focus on conferences;
- Mixed.
The last type is optimal because it includes the previous two. Compared to the first type, the second type requires more space. Also, the youth hostel requires less expense. The second is often empty, but just one visit to the delegation will be able to recoup all the monthly maintenance costs. Before you really open a hostel, you need to think through every detail, according to your own capabilities. Write down the positives and negatives. Know that there is no golden business, immediately starting to make a profit. It all depends on the individual qualities of the entrepreneur.
PROFIT, PROFITABILITY AND PAYBACK OF THE HOSTEL
The main point in the business plan is the economic side of the business. After all, it is impossible to create a hostel as a business without calculating profit, payback period, etc. Profit is only the right organization of the hostel. On average, a night in the hostel costs $20-$50. We plan to put it in our room at a maximum load of 12 people. As for the initial investment in the business, everything is more complicated. To open a hostel, a business plan should take into account the presence of not only the equipment but also the staff. Let’s take a closer look at what initial costs and ongoing business expenses await the hostel owner.
WHERE TO GET START-UP CAPITAL
Start-up capital is the foundation of the hotel business, even if it concerns the opening of a hostel. Not everyone can have sufficient start-up capital at once, so you need to look for other ways out. The optimal solution would be to attract investors. Presumably, a business partner can be the owners of bars, restaurants, cafes, with the ability to expand their own activities.
HOW TO ATTRACT TARGET CUSTOMERS? ADVERTISING AND FUTURE PROMOTION OF THE HOSTEL
For those who think about how to make the hostel popular so that it does not close in the first months of work, you need to know about the right marketing. First of all, determine what kind of audience the hostel is designed for. Most often it is young people from 20 to 30 years with average incomes, as well as foreigners. In connection with this information, you can calculate the advertising strategy, which can be a tool: Advertising on international sites.
Conveniently, you can find sites where advertising will be almost free. The pluses of this advertising is that visitors can make reservations in advance to stay in the hostel. Social media. Create your own groups in popular social networks. Gain as many subscribers as possible and subscribe yourself. You can agree to cooperate with popular people in the network and they will competently advertise your hostel in their own account. Advertising on the street. The movement of promoters at train stations and airports.
A man who has just arrived in town and does not know where to stay overnight will take a leaflet and choose the exact hostel. Promotions and discounts permanent residents. Develop a system of bonuses and discounts, people like to get nice gifts, such as free breakfast or a discount. If your hostel is designed for businessmen who come with a delegation, then the advertising emphasis should be made directly in these places.
WHAT IS A MODERN HOSTEL?
Hostel design is one of the most important points. Agree that if the hostel is unusual, you will want to come back to it. Now every self-respecting hostel must meet the requirements put forward by the state authorities. Namely:
- Do not open the institution in the basement or ground floors
- Provide quality soundproofing system
- Sanitary facilities are calculated on the principle:
- one toilet for twelve guests
- one shower cubicle for fifteen guests
- one sink for six guests
- A place to sleep should not be less than 2 x 2 feet. It is not uncommon for hostels to use beds with two tiers. Thus, the room is much more free space; the arrangement of storage space for personal belongings of guests
- It is desirable to provide the room with air conditioning and Internet access
- Required in the hostel should be present such premises as a place to rest, namely, a small lounge with magazines, TV, etc., as well as a must be the present kitchen. This allows people to feel more comfortable, especially in the kitchen they can prepare their own food.