Hostelworld Is Sorting Hotels and B&Bs Above Hostels
Hostel Trends and News
I've noticed that Hostelworld.com is not only listing non-hostels in the default views, but it is sorting non-hostels above hostels.
The screenshot below is from London, where Hostelworld lists 94 hostels. Despite that large number of hostels in London, Hostelworld also lists 56 hotels, 18 B&Bs, and 20 apartments in the default view.
When I sort by rating, the #1 property is not a hostel.
#2, #3, and #4 are hostels.
#5 and #6 are hotels.
Etc.
Another example is in Dublin where HW lists 32 hostels at the moment. Instead of just listing those 32 hostels, they also list 58 B&Bs, 23 hotels, and 6 apartments. That means that a hostel isn't just competing with 31 other hostels, but with 118 other accommodation providers, most of which are not hostels. And this is on what is seen by many travelers as "the hostel booking site".
Hostels do a service to hostel booking sites by allocating beds, and the hostels made Hostelworld what it is today. Why should hostels now be competing at a disadvantage with non-hostels in their own niche? In my opinion, listing non-hostels above hostels should not be accepted by hostels. I think that hostels should always be vigilant that they are not being used by hostel booking sites as a tool primarily to upsell hotels.
Have you noticed this, and what do you think?
- Comments
12 years
Hostelworld and Hostelbookers will give anyone an Affiliate account. Then you can create a Hotel booking website for the city your hostel is in and have your hostel as the only hostel competing with the hotels. It is a great way to turn this in to a positive for you that makes your hostel more sustainable. If you do it well enough then you can make good money from the website.
12 years
Here’s something to think about when you see hotels listed alongside or above your hostel.
Bonus pay rises 12-fold at online firm
Accounts filed with the Companies Office show that Dublin-based hostelworld.com chief executive Feargal Mooney, along with three other executives, shared the €607,000 bonus payments after the company behind the site increased operating profits by 19%, from €7.6m to €9.1m, in the 12 months to the end of December last.
…
Net revenues at hostelworld.com’s Luxembourg-based holding firm increased by 14%, from €42.1m to €46m, in the 12 months to the end of December last.The filings show that overall pay for hostelworld.com’s management team of Mr Mooney, chief financial officer Mari Hurley, chief technology officer John O’Donnell, and chief commercial officer Sanjay Balakrishnan (who was hired in May 2011) increased by 127%, from €639,697 to €1.44m.
Last year’s pay for the executives totalled €1.44m, which includes €792,917 in salaries, €607,000 in bonuses, and €46,135 in benefits and payroll taxes.
Has your revenue from HW bookings increased this much? Mine hasn't.
HW makes their money regardless of which property a customer chooses, so the higher commissions of hotels and B&Bs are even better for them. Anything they can do to swing the purchase in that direction will be seen as “the right thing to do” from their perspective.
Obviously their tactics are working. With profits up 19% and the top brass collecting 12 times their previous bonuses, do you think that anything will change? Not likely.
But that doesn’t mean we have to tuck our tails between our legs and accept the beating. HW will do whatever will maximize their profits, regardless of what it means for hostels. That’s just business. Hostels are businesses too, and we should look out for our own interests in the same way.
What can we do?
- Each hostel should complain loudly to HW. Make the phones ring off the hook and fill their inboxes. Let them know exactly what you think.
- Each hostel should educate your guests – fill them in on the precarious relationship hostels have with HW, make sure that they know the truth about the 10% “deposit,” and explain how booking directly with the hostel is better for the hostel and for the guest.
- Move your allotment to another booking site that is more interested in creating a balanced relationship with you.
12 years
Surely this is only an issue for hostels if they rely too heavily on Hostelworld for the survival of their business. Therefore, you can't complain to Hostelworld when it is your own decision to bank only with them. Hostels have been heading down that path for a long time and here is a film I have put together to do my bit to provide an alternate path.
11 years
Hostelworld is at it again, now listing HOUSES!! I've just sent an e-mail to them, and look forward to their thoughts. I get why they list non-traditional properties but would like to see them come up with some criteria before listing just anyone. The major sites do this (Expedia,Orbitz, etc.) Hostelworld doesn't do a site visit pre-listing the property- so in essence they don't know what they're listing. Listing these type of properties raises the question of a similar situation to NYC in regards to hostels popping up and not being licensed, safe, etc.
To Hostelworld:
I just wanted to bring to your attention that you’re now listing HOMES on Hostelworld.com.
http://www.hostelworld.com/hosteldetails.php/15-per-night-15-min-to-loop...
Has the business turned this desperate for you? I’m pretty disappointed to see how low your standards are getting, and honestly the hostel community is getting tired of it, see this article: http://www.hostelmanagement.com/forums/hostelworld-sorting-hotels-bbs-ab...
Again, I’m shocked and am wondering to myself why properties are being listed that don’t meet any sort of requirement other than having a website.
Look forward to hearing your thoughts.
-Mat
11 years
I agree, they're all money making machines, and obviously along with everyone else- I want guests booking directly. I would argue that they (hostelworld) have brand power, and are the premier booking engine for hostels. If they're making properties meet requirements to be "recommended" or selling "premium listings" I think they should have a level playing field for all properties they list.
Happy customers for them, equals more business for them too - so I think they have a vested interest in selling properties that people want to buy. Furthermore, in a market like Chicago - having properties far away from the city, isn't going to contribute to guests having a positive experience here - thus, won't come back, and won't use Hostelworld again.
11 years
My guess is this is them trying to get the jump on Couchsurfing.com. I met the CEO of couchsurfing at the WYSTC conference and he told me they plan on putting paid bookings on their site this coming year.
I agree that this is not the right place, but apparently this a listing on their Bed and Breakfast World site..I've seen listings before on their site from this one, but i think the ones i've seen are really bed and breakfasts.
this really does seem to be more of a money grab at this point then providing viable options. Someday someone is going to file a major lawsuit when they get hurt at an place that has not been vetted (probably an american) and then maybe they'll pay more attention.
I think they should change their name from Hostelworld to AnythingGoes.com. ....
maria
11 years
Are they following the Airbnb model where anyone can list their apartment? I've attached a screenshot. "My house..."?
11 years
I already told you guys, the new WRI wants to make more money, they will little by little change things around for their favor.
One thing that I learned with "HOTELS" is, never depend solely on one website(OTA), spread your allocation around, and if you see that one website is selling more than the other give a little more, but don't make HW a extension of your business.
A great solution is invest some money in a very good website and some search engine optimization, with that you will drive traffic to your website so you don't pay commission.
Since you can't have rates disparity, you can offer in your website a freebie, E.G.: Book with us and get a free drink, or free t-shirt,free city bus pass, give something that your guests will only get booking with you.
Expedia is a money making machine, they take a large portion of hotels profit, you will see, WRI will do the same very soon :steve:
11 years
Here is an interesting article about airbnb:
http://www.nytimes.com/2012/12/01/your-money/a-warning-for-airbnb-hosts-...
Interesting concept, but creates these NYC issues again that shut down many hostels because of incorrect zoning, etc.
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