How does the economic crisis affect your hostel?

My point is: we may have an economic crisis now - that´s bad, but it´ll be over in a year or two (probably...). The more important question is: where will we end up in 15 years? 15 years ago, a Munich student had to work one hour to earn the equivalent of a dorm bed´s worth. Now, he has to work between 2 and 4 hours. in 2023, will he have to work an entire day? How many middle class kids will there be left who still can afford to travel in Europe?

Surely it a fairly simple case of supply and demand. If, as you suggest, the price for a bed becomes too expensive for our core customers then we have to reduce costs to keep the price down.

One of the main costs for many hostels, especially the newer ones, I should imagine, would be servicing borrowings and who knows what will happen to interest rates over the next few years. Hostels will not be immune to a recession, we could see a few go to the wall. An interesting scenario for cash rich groups.

Did you notice any ratio changes between walk ins against online bookings though?

No, at least not something obvious. We don´t really keep statistics about that.

Even if salaries here increased a lot during the past 20 years, prices gone up against salaries, also our economy is still the worst in the EU.
However, Hungarian travelers are not typical hostel visitors. Students usually can't afford even hostel prices (guest houses and zimmer freis are much cheaper than hostels here), elder generations prefer hotels against hostels. Therefore Hungarian hostels are mostly (98%) relying on foreigners, unlike in your chain where you have a high percentage of young German visitors.

O well... the "high percentage" is still less than 10%. But you´re right, almost nobody from Central/Eastern Europe uses hostels. The big question is: will that change in the next 15 years or will the West European middle class be as poor as Hungary´s? In Germany, there is certainly a trend in that direction. The number of rich people is rising, as well as the number of poor people.

Budget flights have boosted the hostel market and flooded hostels with flashpackers as much as backpackers are going to be a minority sooner or later. This bubble can pull down a lot of hostels in Europe.

That´s why I´m in favor of a revival of Interrail.

A year ago I would have said these kids will get loans just like they do it in the US. I doubt that by now. They may travel less or find alternative ways to travel. For example more will backpack in Asia or S.America instead of Europe, just like a lot of them does it now.

No way. German students will never travel with borrowed money. They won´t even ask for these loans. It´s a very different mentality there, compared with the USA.

No, at least not something obvious. We don´t really keep statistics about that.

I'm surprized! I thought such chain like yours does rely on more analytics and marketing reports...

O well... the "high percentage" is still less than 10%.

Is that the same in Munich and Berlin as well? As I've heard German inland tourism is very intensive...

But you´re right, almost nobody from Central/Eastern Europe uses hostels. The big question is: will that change in the next 15 years or will the West European middle class be as poor as Hungary´s? In Germany, there is certainly a trend in that direction. The number of rich people is rising, as well as the number of poor people.

I think the trend will keep balance between either working in rich countries (like Polish or Aussies in UK) or traveling to cheap countries (like Asia or even some parts of Eastern Europe).

Budget flights made a high boom for us, hostels, allowing the average people to travel more for pennies. Let's hope people will try to keep up their "luxury" even if they concentrate more for their budget, maybe giving up some discrimination and demands in favor to hostels. I would feel pity for the youngsters though, who have no income or earn less and depending more on their parents who also earn less than before. I'm also worried about those existencially collapsed people who used to have room service and sleeping in dormitories. I rather have some open minded youngsters around.

That´s why I´m in favor of a revival of Interrail.

Just like me, however Interrail still exist, only not as "convenient" as budget flights. Especially when railing could be not only longer but even more expensive than taking a flight.

No way. German students will never travel with borrowed money. They won´t even ask for these loans. It´s a very different mentality there, compared with the USA.

Well, we have rather an Ossie mentality here. Very social and no one wants to work, expects to be paid from the government and awaiting the roast chicken to fly into our mouth. And always complaining about something else than us. However, a lot of people living on debts, just like in the US, students are concreted down by study loans and even the government wants to get rich by raising taxes all the time.

Just few macro datas: Hungary has the highest redistribution rate in the EU,despite the third highest taxes, the largest unemployment rate, largest disabled rate (including many-many fake ones) and the biggest deficit and country debt. We are on the way to Iceland, the only luck we have is we are EU members, almost all banks belong to multinational firms (remember how Icelandic banks impacted more on UK economy?) and IMF is convinced it would be more collateral damage on EU economy than to leave us sink...

I'm surprized! I thought such chain like yours does rely on more analytics and marketing reports...

Hahaha! Don´t believe the hype. We´re just human. I am the only person in charge of number-crunching here, and I have other things to do as well. I wish I had a clone around, because there would easily be enough work for another Klaus.
Compared to other chains, I think we have a very lean headoffice. There are just the two owners, a part-time webmaster, a part-time PR/sales/marketing girl, an accountant and me. That´s it. We´re pretty busy with running those 4 hostels and expanding. I wish we could spend more manpower on "more analytics", but that would cost money - money we rather spend on improving our hostels. I don´t want extra staff who never see our guests.

Is that the same in Munich and Berlin as well? As I've heard German inland tourism is very intensive...

Munich is not really a big destination for Germans - at least not for vacation trips. Trade fairs are really big in Munich, and the hotels are always full with people who attend those. Even the hostels fill up quicker when there´s a big fair in town, because all the budget hotels are already full. Our neighbor hostel always doubles prices during the construction fair week.

Question for all the hostel owners who are so fond of yield management: would you double your prices because there´s a big trade fair in town, knowing full well that:
A) you will be full no matter what you charge.
B) none of your guests comes to attend that fair - many just book your hostel because everything else is full.
C) hence, your guests will think you´re ripping them off.

We have more Germans staying in our Berlin hostel, because Berlin is indeed a weekend trip destination for young Germans. Still, they are less than 10% and only book private rooms.

I think the trend will keep balance between either working in rich countries (like Polish or Aussies in UK) or traveling to cheap countries (like Asia or even some parts of Eastern Europe).

Budget flights made a high boom for us, hostels, allowing the average people to travel more for pennies. Let's hope people will try to keep up their "luxury" even if they concentrate more for their budget, maybe giving up some discrimination and demands in favor to hostels. I would feel pity for the youngsters though, who have no income or earn less and depending more on their parents who also earn less than before. I'm also worried about those existencially collapsed people who used to have room service and sleeping in dormitories. I rather have some open minded youngsters around.

I think we will have to get used to those downgrading formerly-wealthy people.

Just like me, however Interrail still exist, only not as "convenient" as budget flights. Especially when railing could be not only longer but even more expensive than taking a flight.

OK, to clarify my point: I am in favor of a return of cheap Interrail. Something like EUR 250 for unlimited travel for a month on the entire continent. Without those stupid zones and without all the extra supplements and reservation fees.

Well, we have rather an Ossie mentality here. Very social and no one wants to work, expects to be paid from the government and awaiting the roast chicken to fly into our mouth. And always complaining about something else than us. However, a lot of people living on debts, just like in the US, students are concreted down by study loans and even the government wants to get rich by raising taxes all the time.

Just few macro datas: Hungary has the highest redistribution rate in the EU,despite the third highest taxes, the largest unemployment rate, largest disabled rate (including many-many fake ones) and the biggest deficit and country debt. We are on the way to Iceland, the only luck we have is we are EU members, almost all banks belong to multinational firms (remember how Icelandic banks impacted more on UK economy?) and IMF is convinced it would be more collateral damage on EU economy than to leave us sink...

To be honest, I don´t know much about Hungary. I know something about East Germany though and assume there are similarities. I guess you have a good point. I used to do a lot of McJobs in Bavaria (=West Germany) and observed that "having nothing to do" is just not tolerated by your bosses. If you have nothing to do, you are supposed to find yourself some work or at least tell them immediately that you have nothing to do. If they can´t think of anything else, they make you sweep the floor. And again and again.
My experiences were a lot different in Berlin. I used to have a job as a delivery guy there and never had more than two or three deliveries every day - work for two or three hours at most. I have spent five paid hours avery day reading a novel right next to the boss (who had not much to do either). It was the same on other Jobs in Berlin.

Anyway, I wouldn´t blame people too much. They were deeply disappointed. Before re-unification, Helmut Kohl promised the East Germans that "most will be better off and nobody will be worse off". Of course, everybody got freedom of speech and freedom to travel, but in the economical sense, a lot people were worse off. Many may not be motivated to work too hard when their government doesn´t do that, too. Especially when wages are low and unemployment benefits are easy to get.