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Independent Operators vs. Non-Profit

General Hostel Operations

allthis4adream started this discussion 15 years 3 months ago

Hi,

This is my first post of many posts for the rest of my life.
Quick question:
As independent operators how do you compete with non-profit organizations. Why would a traveller prefer to stay at a non-profit? Input would be greatly appreciated.

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canhostel

15 years

When you say non profit I assume you are referring to HI. Well some guests will always stay at HI because they are members. Some backpackers will never stay at HI because of that same point. As an independent we operate quite well against HI as we have ensuite washrooms in all our rooms, our HI competitor does not. We have a location in downtown close to the bus station and closer to the train station, our competitor does not. We do not charge for membership, our HI competitor does whether it is with a non member price or the need to buy a membership. HI in our particular case is somewhat top heavy (bureaucracy) and not very quick at change. This is good for us. Hope that answers some of your questions.

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Josh Hostels

15 years

As independent operators how do you compete with non-profit organizations. Why would a traveller prefer to stay at a non-profit? Input would be greatly appreciated.

I think that most travelers don't think about whether a hostel is for-profit or nonprofit. The line is blurred in too many places...

RE: Hostelling International
HI is many different organizations. E.g., In some countries, the local HI organization runs no-alcohol hostels with separate male/female dorms. In other countries I've seen HI hostels that encourage wild alcohol-fueled parties with swimming pools, co-ed dorms, and female underwear tacked to the bulletin board. People who love one country's HI hostels might not enjoy HI hostels in some other countries. I don't know if many travelers think about the nonprofit status...

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allthis4adream

15 years

Interesting. I plan on acquiring a hostel and aside from doing due diligence on my competition I am concerned on how indpendent operators combat non-profits. i.e. (better) facilities, larger occupancies. Any other input?

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Josh Hostels

15 years

Make a name for your hostel. Give it character. I think how you can distinguish yourself depends on the country and city...

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Plakian

15 years

Financially we independents can compete easily as we do not have massive head office costs.

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Scotch Argus

15 years

Financially we independents can compete easily as we do not have massive head office costs.

Agree with this totally - a lot of HI national organisations have very high overheads due to head office staffing costs, which eats into their revenues by much more than whatever benefit they get from their non profit status. Plus as the manager/ owner of a private hostel you can be totally receptive to your market - HI associations I've had experience with are not.

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Irishdon

15 years

Being independent means there are no limits to what you can do with your hostel.

Maybe the only limits are your imagination and your finances!! Apart from these there is no end to the number of ideas you can have or services you can offer to your guests. You decide and nobody decides for you :D

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livaus

15 years

we are independent but part of HI network in LV. We can do whatever we want, we get allocation on hihostels.com, just need to pay 5% commision to HI and 5% commision to local HI office - same as with other booking agents

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hostel designer

15 years

Hostelling International (at least in the case of HI-USA) has three tiers of hostels:

1. Owned/operated by HI national organization
2. Owned by regional councils of HI, sometimes co-owned by HI national org
3. Independent operators who become affiliated with the HI network

The hostels owned by HI are generally known to be huge, clean/secure, but somewhat institutional and lower on the fun factor. Independent hostels who become affiliated with HI adhere to their quality standards (square footage requirements, staff, etc.) but in my experience tend to have more character and are more fun (e.g. Apple Hostels Philadephia).

I believe up until the 80s or so, most hostels were associated with HI, but many people were turned off by increasing bureaucracy and rigidity of rules, so they began going the independent route.

Nowadays, being affiliated with a national hostelling organization is not as important - as long as you have a quality hostel that hits all the important points and can generate good reviews on sites like hostelworld.com.

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CLEroadtripper

14 years

I'd like to know more about what HI offers and the pros and cons of being part of that organization, if anyone has other thoughts. And are there other hostelling organizations besides HI in the U.S. that would make more sense for a smaller hostel to be a part of? Also, does anyone know of any independent hostels that have non-profit status? Thanks!

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