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Hostelworld increase fee to 12%

Hostel Reviews, Booking Engines, and Directories

JAY started this discussion 10 years 10 months ago

New contrat :

The change relates to clause 4 (HW’s Service Fees), 4.1 – from 27th February 2014 we are increasing your service fee rates from 10% to 12%. Your revised copy of the updated Standard Services Licence Agreement, are located in your HostelWorld Inbox system.

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John Moriarty

10 years

There is alot of angry people in regards this news.

A few suggestions from the facebook group

1. Increase Prices

2. Absorb the increase taking from your profits.

3. Reduce allocation on Hostelworld

4. Remove your hostel in protest from Hostelworld

5. Block Hostelworld website on your hostel wi-fi preventing people in your hostel booking through them

6. Increase minimum stay from hosteworld bookings to 2 nights

7. Work with other hostels to get more bookings directly

8. Move allocation to hostelclub,Gomio etc.

9. Protest by organising country by country and advise Hostelworld that you as a group will remove allocation across all hostels for certain dates

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Hostel Times.com

10 years

Hello,

If you haven't already, we recommend you switch your hostel listing and bookings to hosteltimes.com

Our commission rates are 10% and they will NEVER be raised.

Of that 10%, half is given back to the customer making the reservation.

At Hostel Times we are made up of former and current hostel owners as well as travel enthusiasts so it's important to us to preserve and promote the essence of hostel travel. Which to us means maintaining a budget while traveling, meeting amazing people, and experiencing exotic places.

Hostel World raising their rates will naturally cause hostels to raise their rates which will hinder the budgeting traveler's experience.

It's a small percentage hike but when is the next one coming?

Join us at Hostel Times.com

Hostel Times

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John Moriarty

10 years

How long have you implemented the 50 % return when booking?

I already have full availability on Hosteltimes.com but I am afraid I have never got a booking from your website.

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Hostel Times.com

10 years

John,

First we would like to thank you for being a loyal partner of ours.

We are not the new face on the scene but what is new and changing is our aggressive marketing philosophy. We are actively engaging and checking in with hostel owners such as yourself as well as pursing repeat customers and the thousands of new travelers who begin planning their journeys everyday.

The results of our renewed marketing efforts have been overwhelmingly positive. We are just now starting to see some momentum with an increase in bookings. We fully intend to keep the momentum going and to capitalize on The Evil Empire's (Hostel World's) greediness.

We appreciate all the promotion help we have been receiving as of late from our partners. As it takes a team effort to break the mold. If you would like give us any feedback please feel free to reply here or send us a direct email at [email protected]

Thanks Again John,

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John Moriarty

10 years

What about firstly contacting the hostels to get them listed.

In my area I am the only hostel listed on Hosteltimes it would be great to have the other hostels on there as well.

Maybe send an email to the hostels on hostelworld that are not listed on your website.

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Hostellier

10 years

The problem is not reaching the hostels, but reaching the guests. Sorry John, but Hostel owners and managers know about Hosteltimes. It just doesn't provide any bookings so many stopped maintaining it. It's no fault of your own, but just impossible to compete with the millions of dollars HW and HB invest into marketing. And as much effort as Hostel owners keep trying to put into various independent bookings systems of our own making, it all comes back to the fact that we need HW because that's what the guests use.

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Hostel Times.com

10 years

John,

Thank you for bringing that to our attention. I will personally look into adding more hostels from your area.

We work daily on improving our network of hostels, some areas build up faster than others but we have not forgotten about any of our other partners.

I'll keep you posted on our progress in your area.

Hostel Times Team

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Hostel Times.com

10 years

Hostellier,

You make an excellent point. It is no secret that it is tough to compete with Hostel World and Bookers. But the attitude that as hostel owners we needHostel World and Bookers is wrong. Hostel World and Bookers NEED the hostels. If there are a significant amount of hostels that reduce or remove their allocations from Hostel World and Bookers then where will travelers go to find accommodations? The answer is other guys such as Hostel Times and Hostel Club.

Like I mentioned above to John we are not new on the scene, but what is new is our aggressive approach to marketing as well as new founded resources and funding.

We are seeing results. Change (especially one as big as ousting the big guys) does not happen overnight, but it's the belief along with action that makes change possible.

Thanks for your feedback Hostellier,

Hostel Times Team

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John Moriarty

10 years

I just received your email which was very good in regards the change in commission.

Now while we all want direct bookings and not pay commision I think there is a place for companies who work with hostes and take commission.

Your 5 % discount is very interesting I actually had the same idea myself about a year ago but I would give it back to the customer on a credit basis that they can only use it for their next booking so they will return to the site.

I also think if Hosteltimes created a poster with advertising there services and how they work with hostels I think all hostels would definately print this off and display it even advising customers to book in future through Hosteltimes.

We have the advantage of being able to directly market to customers while they are in our business.

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slushysnow

10 years

Below is the email received from HW:

Dear The Emperors Crown Backpackers,

I am writing to let you know that we are making changes, including to HW’s Service Fees, in our Standard Services and Licence Agreement which govern the relationship between you, as a property owner, and HostelWorld.
The change relates to clause 4 (HW’s Service Fees), 4.1 – from 27th February 2014 we are increasing your service fee rates from 10% to 12%. Your revised copy of the updated Standard Services Licence Agreement, are located in your HostelWorld Inbox system.
For Information & Frequently Asked Questions - Click Here
Recent trends within digital marketing and competition from multiple channels have driven significantly higher cost per customer acquisition, whilst price competition within a challenging accommodation market has driven down the average return per booking. To enable Hostelworld to compete effectively in this competitive market, it is necessary to restore balance to the economic business model by raising the service fee per booking. This will allow the continual investment in technology and marketing that will drive your occupancy across the entire year, whilst retaining our position as the most price competitive across all the major OTAs.

We look forward to our continued partnership as these new terms and conditions come into effect at the end of February. However, should you chose not to accept the new terms and conditions, you are fully entitled under the provisions of the existing contract to end the commercial relationship by notifying us within 14 days of receipt of this email.
Please note that if we do not hear from you within 14 days of receipt of this email we will assume that you have accepted the new terms and conditions.
Please do not hesitate to contact us by replying to this email should you have any questions in relation to this.

Regards,
The Hostelworld.com Team

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