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How Do You Feel About the Recession?

General Hostel Operations

LatestViking started this discussion 15 years 5 months ago

How is the occupancy like ?

In some countries prices are extremely low !!!

Overall, I think is visible everywhere...

Please comment

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stozza

15 years

The recession hasn't affected us. The prices are low, but thats because the number of hostel beds in the city has increased to a saturated level, coupled with the fact we are all going for the same customers on the same page on hostelworld etc. The market is different, its changing. The world is different, its changing. The internet has been more the effect. The recession might have even been good for us, because the pound has gone down making Britain a cheaper destination for Europeans.

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LatestViking

15 years

The prices are low, but thats because the number of hostel beds in the city has increased to a saturated level, coupled with the fact we are all going for the same customers on the same page on hostelworld etc.

Some people say : ''Dropping price in high season...is not a good decision!''

Stozza, what do you think about that?

As you said, no of beds has increased. Means the occupancy should be lower, comparing with last year, right?

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LatestViking

15 years

What's going on ???

At the HW conference they were saying:

''Dropping price in recession is the worst thing that you can do !''

And now???

What do you think about that ?

Why € 1 /bed ?

Give it for free and you can charge from towels and hair-dryers !:D

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Josh Hostels

15 years

Why € 1 /bed ?

Give it for free and you can charge from towels and hair-dryers !:D

Maybe it works something like Ryanair -- there is a $5 checkin fee and a $5 checkout fee, plus $5 if you want a key to your room. If you forget to print your reservation confirmation there is an additional $40 penalty. :)

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LatestViking

15 years

What about the toilet paper ?:D

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Josh Hostels

15 years

I think it's a bug because I can't find a 1 euro rate.

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Josh Hostels

15 years

What about the toilet paper ?:D

Coin operated hostel toilets? 1 euro every time you have to go?

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LatestViking

15 years

Hahaha

Sure, and flush the toilet just once, otherwise a credit card fee will apply !

You're right, a think is a bug...but a big one ! :D

IMAGE(http://www.shafirart.com/pix/cer/BigBug.jpg)

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Scotch Argus

15 years

Hopefully if you offer a good experience to the customer then you shouldn't have to drop your prices that much - Although price comparison on HW is very easy as they all appear on the same page, so is comparisons of reviews. There are poorly reviewed places offering very cheap beds, but if you can differentiate yourself by being better quality I think the bookings should hold up. Certainly I can't see the point of dropping the price below cost. It's not like a hostel is a supermarket where they get you in with a loss leader and then you buy heaps of other stuff. Most people just want a bed.

I guess in saturated markets price wars are inevitable. In smaller markets they are just damaging to all. Cheaper prices won't bring any more customers to a remote town - they just lower revenue for everyone.

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LatestViking

15 years

Hopefully if you offer a good experience to the customer then you shouldn't have to drop your prices that much - Although price comparison on HW is very easy as they all appear on the same page, so is comparisons of reviews.

Agree, but as you see they don't do it !!!:)

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