16 years
They can certainly set up dozens big properties with good facilities in a very short time.
They would have the additional advantage to have already loads of good working relationships with all the major travel agents.
They would have te advantage of having enough money to enter the market with a price war.
Interesting...
I think there are ways to stay competitive. Hostel marketing is still in the stone age. I think many backpackers are willing to stay at a slightly more expensive hostel if they think it's better. A good hostel can be a destination in itself.
The first hostel I worked at was so popular that the owner kept the address a secret. You had to call for a phone interview before you could stay there. :D
When I first tried to stay there as a guest, a few of us had to network to find the address and then stop by in person and practically beg to stay there. It took two visits to the secret location before they let us stay there. Price was less important than getting into THE hostel.
Sorry - I think I was mistaken about Smart City earlier. It was Globetrotter Inns who said they were going to expand across Europe. Different Edinburgh hostel.
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