9 years
we got tax reports from the city. didn't have much info on demographics but it did show when we would be busiest. and its accurate. based on the amount of tax brought in per hotel per month.
Business Plan Questions-Profile of the Hostel User and Competitive Analysis
Start a Hostel
Good Day, Forum!
I am located in a city that doesn't have hostels (USA). I'm hoping to start one in the next two years and am trying to write an airtight plan for funding. I'm pretty confident a hostel will thrive here. So here are my questions:
1.) My Convention and Visitors Bureau and Chamber of Commerce don't have any data about the type of people that would patronize a hostel (eg; How many single travelers visit, age breakdowns of visitors, etc.) so I have to make one. For those of you who have faced a similar situation, how did you get around this?
2.) Feeding off the first, how did you write an analysis showing that your hostel can compete against a motel/hotel situation? Bonus points if you used a SWOT method.
I have started writing this out, but I would like to see how others successfully did it. There is some interest from investors and an entrepreneur fund in my city, but I want to give this every chance to succeed and am not to proud to ask for help.
Thanks!
P.S. you don't have to be USA specific. I am quite certain hostel owners in other countries have faced a similar hurdle and your advice would be welcome as well.
- Comments
9 years
Thanks for the input! BTW, checked you guys out. Looks awesome. I hope you are doing well. With your idea, I think that what I will do is see if I can cross reference it with the different levels of accommodations (hotels to motels) to start building a profile and also to show investors that the hostel/backpacker/flashpacker market is sorely under served. If you have any other suggestions, please let me know!
9 years
I would start with the reason why people come to that city. Is it outdoor adventure types or wineries or what? Then you could explain why that type of traveler would prefer a hostel environment versus the boring hotel.
What city?
9 years
Thanks! The city? Southwest Texas. San Antonio.
EDIT: Just saw you were from the East Coast! I grew up in the DMV! Greetings. As an aside: Interesting story because I am facing the same regulatory hurdles in zoning. It's a slog.
9 years
Nice! The only place I know of really there is the river walk even though I lived there for a 6 months. ;-)
Yes, zoning sucks. But if you know what definitions you can fall under, you can map out what locations would work. As an example, a hostel is definitely not a B&B in Alexandria, but right next door in the District, it could fall under that depending on the number of rooms.
9 years
Hi guys,
Very interesting Thread here,
I think I'll be back, ;z)
i'm looking at a town in S. usa (FL ) that has no hostels and is a heavy tourist destination in winter. of course all of FL is and hotell rooms go from 40$ in summer to 90+ (if available) anything that competes with that will work.. In my opinion..
and this is a Beach destination of course... & colleges help to.. (it's defined as the Art Coast by other parts of Fl/Floridians)
But I'm not 100% sure how many 'backpackers actually come in here'... it's not Orlando or miami.. Tons of 'snow birds', how Do i get that demographics? it's a great question..
I like the idea of getting tax reports from the city, but it's going to tell me what i know instinctually, just with harder #'s
Me? I've worked in real estate Tax-repo, computer databases, investing, real estate in general, however this is about the cash flow and life style..
(face it, if we have more recessions to come the lowest cost housing, hotel, hostel or whatever you want to call it will always win, and in up times we have to compete on 'fun', which works for me to ;z)
So back to the point: this speaks to my 'heart', the Data, where's the data come from?
I know there's a heck of a lot of people in Fl in winter, but how do i find the data that you build a solid business plan that you can present to a bank... and get a mill to buy a property in a good location...
(there's privacy laws holding you back practically. - I dunno if there's a central database ( i hope not) that the hotels report their customers into.. and that would have age/sex/duration of stay... (getting that would be kinda hard.)
'asking in a soft voice would lead to UN-objective data...
(if it was a magazine subscription we were talking about, you could buy the list of all the subscribers...(seriously) $ but fact.
ciao ciao
9 years
Hi, Fez Miester,
Data, data data. It is frustrating to get, yet so vital to any business. This is, mainly, because hosteling didn't take of like it did in other places, although we are now seeing that change.
One thing that I have been using to make my plan is to use data about Airbnb, couchsurfing and similar services in your area. Also, see what the occupancy rates are with your brick and mortar BnBs. I have found that this gives me a good indication about the viability of selling private rooms (if you will have them). These are the type of people that hostels will for privates and then you can extrapolate from there what your bunk rates might be. I am using Airbnb/couchsurfing data (where I can get it) for the occupancy for dorms and regular bnb/motel data for privates. In my area Bnb are required to submit that data to the county and state for tax collection purposes so it is semi public record. We are not regulating online services yet, but your area might. If so, ask them for the data. The thing is, if you can show enough different types of data to back up what you know instinctively, everything else falls into place. I haven't completed my plan yet, but I have "potential" investors who like the idea if I can show that I am doing my best not to lose their money. My biggest obstacle is finding property, right now, as a basis for a budget. Finally, reach out to other hostel owners in the area (I stayed at the hostel in Tampa, once. Stand up guys. Try to reach out). I have found if you approach people the right way, they are willing to share knowledge.
Good luck. Here's to your, and others success. I hope others ware willing to share their experiences in this regard.
9 years
I have a business plan for my hostel in Ireland that I setup 2 years ago if anyone wants to have a look in regards the layout of the business plan.
You can email me john at dunloeviewhostel.ie
You should contact Hostelworld and see if they would give you data in regards searches for hostels in your city on their website. Maybe Hostelworld is not so big in your area so it might not be a huge amount.
I think it is good to look at stats from Airbnb. I get a number of bookings through Airbnb and I know many small hostels use them.
I would look up Booking.com and Expedia to see how much similar accommodation is in your area see their prices and their facilities and how you can compete.
9 years
Also look at your feeder cities. Maybe Houston and Austin in your case and contact some hostels there.
What flights come in from other cities . I am sure there are many but if you picked out a key few that would be bringing in tourists.
Also if you can get statistics about tourism in regards what countries people visit from. I am sure most is domestic tourism but it is worth a look.
While not scientific have a look at where reviews of other properties are coming from. Check tripadvisor and Booking.com for what country the reviewers are from.
Have a look at google trends for searches such as San Antonio hostel or maybe cheap accommodation san antonio.
Is there a lot of out door activities in the area, mountain climbing etc. Maybe talk to some local mountain clubs at see if they know of visitors coming to the area or groups.
9 years
John Moriarity,
You are fantastic. I have sent a private email. This will let me compare where I am at and see if I am on the right track. As to all your other suggestions, they are great as well. Some of them I had already been working on and some have given me thoughts in different area. Thank you very much for that input.
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