I am currently at the situation when , there are too many hostels in the town, and basicly the hostels do not make money , supply is bigger than demand.
Of course the strongest survive by experience and good marketing , but still they just survive.
I am thinking about the possibility of extra business.
There is the possibility to work as a hotel booking agent.
I mean , having small office , having good web site , or registering hotels at a good web sites , you can have the commisions from each hotel or apartmetn on a different conditions and agreements.
I am just thinking , how profitable can be this activity comparably with hostel running .
Is it more worthy to invest your energy to a good hostel in these hard times or to invest to the booking agent service is more perspective ?
The one can invest to the intermediators service , as the one who gets good commissions from the hotels
or the one can dedicate his activity to the promoting , advertising , marketing of his hostel.
I noticed that these guise who work for the commisions , they never loose.
I mean , you can make some money on Summer as a hostel owner and you must spend those money on winter .
But intermediators , they always make their money , some times in low season they get much more commissions than in high season.
And some times on winter they make more money than on summer
Of course , you must have a good web site , and not to be lazy to visit about 30-40-50 hotels , hostels by offering them your intermediary service.
And of course , to negotiate a good commissions for your service.
The matter is that , in some areas , the hoteliers and the ones who have many flats , they do not know how to advertise.
And frequently they use the intermediators service and are ready to pay a high comissions for your service.
In some way there is a lack of beds in a big cities , but in some way all these huge and small hotels are half empty or totally empty , and in their marketing departments many of them are not experienced in internet advertising.
For example , as I heard the owners of hostelbookers.com , probably the second best hostels web site
are the people who came from the budget hotels and hostels business and they are still in the hostels business now .
Of course , I can not compare it with my calculations , because I shall never achieve this level and this capital .
I am not good in mathematics to compare the profits perspectives of two different activities , and of course the hostel running its more about what ''you like to do'' in your life than about just a ''profit'' , but still , what activity is commercially more profitable ?
Or lets formalize my question in this way ; - why do you think it is more prfitable to be a good hostel owner than to be a good hotel/hostel booking agent ?
From commercial point of view , how many hotels should you have in your arcenal , if you get from 10 till 20 % commisions that your income would compare with income of a good hostel ?
Why is is more profitable to have 30-40 beds hostel than to have 30-40 hotels , hostels and apartments and and to get a good commissions from them ?