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Hostelworld - Boost your bookings with Elevate

Hostel Trends and News

Phil99 started this discussion 11 years 3 months ago

Just noticed that Hostelworld have made another change with "Boost your bookings with Elevate". This is where hostels can now offer upto 15% commission to Hostelworld instead of the normal 10% to boost where they are listed in the hostel listing.

Fair enough, they are running a business and they want to make more money but this another move that they have done which affects top performers on Hostelworld. The other change they did was with the reviews/rating changes.

It has not affected our bookings yet but I dare say it will in the future as the poor performing hostels catch on to this. If I am going to paying more to Hostelworld to boost my positions then I might as well use some of the other booking engines that charge higher commissions. Maybe I have had it to good for to long paying 10% commission but still running at a high occupancy.

I think it is time for Channel management to come into affect, I have been lucky in the past as Hostelworld alone has filled our rooms.http://www.hostelmanagement.com/sites/all/modules/smileys/packs/Roving/s...

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Josh Hostels

11 years

IMHO, all hostels should strongly oppose any kind of commission increase. The long-term result may be that hotels can outbid genuine hostels on commission since they are working with a model where higher commissions are expected.

With Hostelworld's "Elevate" program, it looks like hostels end up paying more (higher commissions) for less (hotels listed above the hostels).

An alternate idea for Hostelworld to consider would be to raise commission on hotels and permanently keep it at 10% for hostels. A property would be considered a "hostel" if it has shared accommodation for solo travelers as in the definition of a hostel. In general, don't "fiddle the scores for hostels". For example, if Hostelworld is going to say that their recommendations are based on "quality" they should be based on the customer reviews, not on allocations.

See also the other thread: Hostelworld's new ELEVATE program.

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Phil99

11 years

In an ideal world then your idea would be great but Hostelworld is getting much bigger and more powerful. The owners/shareholders will expect bigger profits and if it means pee-ing off a few hostel owners then so be it.

Around 80% of our customers come from Hostelworld, this currently generates them around 600$US per month in commissions from us. However, because of the recent changes with the reviews and the elevate program, I will be spreading our bookings over numerous booking engines. This in affect will lose them around 300$ in commissions from us per month, so if the top performing hostels all lean towards other booking engines rather than Hostelworld then it has to put a dent into their profits and make them think twice about pee-ing off the top customers (which is what we are).

It is the top preforming hostels that need to complain, these are the hostels which make Hostelworld the most commissions.

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XHostelBuchares...

11 years

I wouldn't mind the 15%, but only for our private rooms. Perhaps they should do that. Our channel manager allows us the add more commission to our master rate, so we would adjuct accordingly. Now 15% for dorm rooms is excessive, considering the low revenue it pulls in the first place, but now there is a monopoly it is plausable, so it might be smart to plan for it. I remember my old boss telling me of the days where they spend more than 20% revenue on print and paid someone to distribute.

We need a #2. Gomio, Hostelclub, VIPbackpackers, someone needs to step up. There is plenty thear dont do that a #2 can rapidly grow.

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