Hi guys,
Does anybody have any ideas for ways to make extra money in your hostel?
What kind of activities are good money spinners?
Anybody have experience with what sells in vending machines?
Many thanks.
13 years
I'm interested in this as well. I was looking into:
- vending machines (Soda/Snacks) - I see these sell used for $500-1000 each
- coin operated laundry - new machines sell for $650-1000 each (for each washer or dryer)
- selling toiletries (I plan on providing free shampoo/soap but other items like toothbrush, toothpaste, etc)
- Tour packages (commission based compensation)
13 years
You can make good cash with extras, but the amount of revenue that hostels actually generate with supplemental sales could also be negligible. Frequently hostels just sell things for the convenience of the guests without making much profit.
Here are some of the things that I hear people mention the most:
Commission-based sales
Laundry service
Beach/bath towel rental
Internet terminals
Phone cards
Bottled drinks
Padlocks
Key chains
T-shirts and other apparel
Electrical adapters
Personal hygiene products
Snacks
13 years
I believe that when your trying to think about how to make more money out your guests the first consideration you should have is what the extra value you are adding to their stay is.
With this in mind I would suggest a bar area where people can meet, relax and share experiences, while you make money by selling them drinks and food etc. One great way this worked was by arranging poker tournaments on days that the weather was lousy! Provide a branded t-shirt and a bar tab for the winner and happy hour prices to those that were playing. Easily you had a crowd of people happy and spending at your establishment on a day that they might have otherwise down nothing but watched TV.
Organise day trips to local attractions by charging a small fee but having a working relationship with the local operators as well.
13 years
this is a good topic. Question is as well, how can u sell more reducing costs. Some are great ideas, but in a country like Argentina where wages have gone up heaps, I reckon that the best solutions are those where we can actually sell for a profit but not adding more staff members...
There was a tendency in the country to have in a 60/100 bed hostel two receptionists per shift (one at night), but wages are impossible to be paid these days. Yes, tours can also be sold, but many backpackers are buying things before hand. So now you can only have one receptionist per shift
In Argentina the tendency was to give everything for free (internet, towel, soup, maps, welcome drink) and some hostels still do....so how can u start taking all this things away when none of your competitors does....
How do you all guys work it out in your countries.....which of these services previously mentioned do you give away for free, which ones do you charge and which ones do you think that made u less competitive towards the other hostels in your location ????
13 years
Hi
1- I think that first thing you always have to consider is making stay of your tenants better than their homes.
2- Environment is an other thing you have to consider , it should be neat , clean and calm.
3- Furniture should be very comfortable eye catching like you can use bunk beds , easy chairs , sofas etc...
4- Always keep on arranging tours.
5- Always keep on arranging games between the tenants.
6- Good food : good food is very major factor in winning the trust of tenants.
7- Good transportation facility is also a major factor.
These are some major things to ponder how ever there is a huge list :-)
12 years
This is an older post, but many of us are still struggling to find services that we can charge for without taking away something that our guests already enjoy.
Two airlines are making impressive efforts lately. Ancillary Friday: American goes the last mile with luggage, and US Airways expands its menu
A few well-known airlines have embarked on a new trend in growing ancillary revenue streams by actually inventing new services instead of merely unbundling existing ones. American and United announced initiatives in the last couple of days.
Starting August 6, American Airlines will partner with BAGS VIP Luggage Delivery to offer a door-to-door delivery service for luggage from more than 200 U.S. domestic airports for a fee.
Beginning yesterday, US Airways became the first US carrier to offer international economy passengers a premium meal choice for a typical price of $20. The program is called DineFresh, with items like shrimp cocktail and creme brulee cheesecake (whatever that is).
Good for them!
Too many companies these days use the Ryanair model, where they knock their product down to the base offer and charge for everything else as if it were an extra. In a hostel this might mean offering a low base rate for a bed and then tacking on an extra fee if a guest wants sheets, a locker, a towel, a shower, hot water in their shower, breakfast, internet, wi-fi, kitchen facilities, housekeeping service, a key to their room, access to power points, working light bulbs, etc.
There were some good suggestions above for making extra money. Do any of you have any more creative ideas for NEW services that could be offered and charged for?
Some brainstorming:
10 years
We've developed a hostel-to-hostel booking system called Open Travel Exchange that lets you capture that 10% commission rather than letting it go to Hostelworld, or one of the other OTAs. That way the booking revenue remains within the hostel community.
Every time your guests browse the web, the first website they see is your hostel's own branded booking site. Your guests simply:
1. Search
2. Book
3. Then pay the 10% booking deposit at reception to confirm the reservation
(we end up charging 2% of that 10%, so you end up with 8% net)
Just making three to five bookings per day (depending on region) should net you an extra $1,000 to $1,500 per month. We're currently working with Backpackers Hostels Canada and are beginning to branch out and start looking at other regions. If you'd like to get this started in your area, or would like details, please let me know. It really is a great system and references are available.
-Brant
10 years
Try to create a logo or a brand that you can easily merchandise in products, some turistical gifts, local products.
10 years
try to sell something that people may have an instant need.
Some herbs are good for high altitude sickness (like hongjintian) and people may want to buy them before visiting some tall mounts.
Guests may need to take a long journey transportations. Take a look what people sell at the train station and it may give you some ideas. (Maybe a theft-proof wallet?)
Some products look useful like a hand-motion torch or a backpackers' stove look useful but not many people to buy them if your hostel is in urban area.
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