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Hostelworld has acquired Hostelbookers!!!

Hostel Trends and News

gordo started this discussion 11 years 7 months ago

Oh snap.

This is certainly going to ruffle some feathers and potentially have a HUGE impact on the industry. I cannot see this being AT ALL good for hostels or guests...

http://www.irishtimes.com/business/wri-acquires-hostelbookers-1.1357196

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DarrenOverby

11 years

UPDATE: As of Monday morning we received an email from Mr. Tom Heideman at the U.K. Office of Fair Trade. As a result of all the last minute comments his office has already received from many hostels (mostly in Europe in the UK) they have extended the comment period to end of business this Friday June 21st. He has also asked me to solicit additional input from hostels. He asked that hostel owners email him directly at Tom[dot]Heideman[at]oft[dot]gsi[dot]gov[dot]uk . He also asked that his colleagues (Chris Whitcombe & Rudi Dedushaj) be copied on any emails sent to him. Their emails are Chris[dot]Whitcombe[at]oft[dot]gsi[dot]gov[dot]uk, and Rudi[dot]Dedushaj[at]oft[dot]gsi[dot]gov[dot]uk . (If you need help translating these anti-spammed email addresses please email us).

Since this merger will affect nearly all hostels around the world, it's very important that Tom, Chris and Rudi here about us on this. When writing your email, please try to address the items listed in the Office of Fair Trade questionnaire that Rucksack Brian previously attached to this discussion.

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HostelDavid

11 years

Done.

I hope everyone else is doing this as well.

- David

Edit: I got THREE automatic replies from all three contacts. apparently they are all out of office.... I hope it's not too late >.

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Rucksack Brian

11 years

They are back in the office now, so it wasn’t too late when you sent it.

The decision is expected to be announced around 11 July 2013, but the date could change. You can track the progress here.

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Rucksack Brian

11 years

Here is an article from Backpacker Trade News about the purchase.

Hostelworld’s proposed acquisition of Hostelbookers nearing completion

The proposed take over would undoubtedly have a huge effect on the backpacker tourism industry worldwide as Hostelworld (owned by WRI) and HostelBookers are the two biggest online booking sites aimed specifically at the backpacker market globally.

Gordo pointed out an interesting observation in the comments section that the European hostels seem more reliant on HW/HB, and therefore more concerned about the purchase than Australians. I have heard that Latin America is far less reliant on HW/HB as well.

It’s great to hear that the bookings aren’t coming from HW/HB in those areas, and I’m curious which sources are replacing them?

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Rucksack Brian

11 years

The decision date has been pushed back to 02 August.

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cmloechl

11 years

Gordo pointed out an interesting observation in the comments section that the European hostels seem more reliant on HW/HB, and therefore more concerned about the purchase than Australians. I have heard that Latin America is far less reliant on HW/HB as well.

It’s great to hear that the bookings aren’t coming from HW/HB in those areas, and I’m curious which sources are replacing them?

In New Zealand, many small hostels are completely or much more reliant on the BBH Network, a Kiwi organization that represents independent hostels. It started as a free booklet put in every hostel, and now is the book and the site. It was originally started by Eric Foley, the owner of a hostel in NZ. Here is what the 'About BBH' says on the site:

"Eric's been involved in "Backpacker" matters, since the beginning.

BBH was formed in 1987 when 37 independent hostels were listed in a broadsheet style guide. Since then more than 3 million copies of the BBH guide have been provided, helping an ever growing number of Independent Travellers to enjoy New Zealand.

The BBH web site in 1995 was possibly the first backpacker site ever on the web. We're still working to keep it the best!"

Backpackers may purchase a BBH card at any BBH hostel for $45. This entitles them to a $3 (sometimes more) discount at any BBH hostel for a year. It also works as a $20 phone card, and every hostel listed in the BBH book has a free 'speed dial' number that can be used through the card.

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DarrenOverby

11 years

In New Zealand, many small hostels are completely or much more reliant on the BBH Network, a Kiwi organization that represents independent hostels.

This is interesting. How are travelers made aware of this network? Is the network promoted internally in the hostels themselves? If you search for NZ hostels on Google from within New Zealand what sites come up first? What is different about the behaviors of backpackers in this region? Courtney, please provide whatever reports you can from New Zealand on this phenomenon.

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kingslum

11 years

It could be good or it could be bad,it depends on your hostel's professionalism in handling the situation.Hostelworld and hostelbookers have many advantages in helping hostels find guests easier than the hostels struggling locally to convince guests to stay with them.The only expensive or little bit complicated part of it is the insurance policy the hostel must acquire to secure its employees and guests life in the event that disasters or accident occurs which in my opinion is normal,for example,the recent plane crash in San Francisco was fully insured and all passengers treated.For hostels,accidents or disasters are rare but can not be foreseen or totally avoided.

I think,this is business and all hostels must understand that,in business,there is no friendship,so it is either you sign or you back off,as for me,I have signed and asked both companies to increase my minimum booking policy to 2 nights minimum stay so that I know that I make better profits in all the troubles, so it would be worth it for my business and I am enjoying full house from both companies often just sitting on my couch and guests who have booked online ringing my bell.This is for sure easier for my business because,where my hostel is located has many other hotels/hostels and it is a kind of tough finding fishes in the pond by myself,but now,I just pay a 10% commission for receiving many fish.Regards

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gordo

11 years

I wonder how HW is taking all of the criticism/worry.

I think the thing that bugs me most (aside from the potential for higher fees/commissions etc) is that whilst WRI is keen to compete with expedia etc, they seem to have forgotten that WE don't compete with the properties on those sites. Ok, so we do to some extent but my point stands. WRI can take on the big players if they want but they cant expect our industry to try and take on the big hotel groups.

That said, I wouldn't expect WRI to do anything else - there's only so much money to be made on selling $20 beds on a 10% commission.

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kingslum

11 years

One thing is for sure,Time will tell of what will happen and how it will influence or affect the hostel business.I do understand that this is a very sensitive case,especially when hostels do not have anywhere to run to in order to receive bookings and hostelworld and hostel bookers control at least 70% market share in guests bookings to several hostels round the world and the hostels can only provide themselves 30% of reservation from guests locally or through their web site.This makes it complicated and hard to judge but like I said,only time will tell if this merger will work or not and if hostelworld will change things to suit the hostels but in the meanwhile,it is still safer to continue working with them as we have very little choices now until we find a better way to do our business better in the near future.
big hotel groups have created a joint website for themselves that cater for online booking only to big hotels round the world and if hostels could organize a small conference,either online or onsite,then many hostels can come together to plan on how to create their own booking sites and market it worldwide.This will work if all hostels round the world contribute some little amount of money to create an online organization that will be responsible for generating online bookings for hostels.Let us imagine if all hostels round the world contribute 50-100 dollars,millions of dollars will be generated to fund such an organization that will be owned and managed by hostels themselves.
This is my honest opinion about the situation and it will give hostels great control and power in the hospitality business because hostels and hotels are widely different and used separately by two categories of customers.
People on vacation and business trip use hotels as a get-away but hostels are for backpackers who need to travel longer and also pay less money to have accommodation,kitchen use,facilities and services but people who use hotels do not need a kitchen or many freebies like hostels will provide for its guests.

So,hostels is the solution for backpackers and hostels must be differentiated from hotels and they really do not need to be in competition against each other because they both pursue different classes of customers.

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