John Moriarty kicked off great list of possible metrics and considerations to look at when analyzing the market for a new hostel.
If you were analysing a new market to put a hostel in what do you look at ? Anything I am missing from the below list:
-No. of Hostels
-No. of Beds
-Privates Vs. Dorms
-Local Tourism Figures
Other members of the community added to the list:
- City's occupancy and ADR rates
- Profitability erosion (increase cost of rooms sold)
- Changing guest needs
- If the city is facing overtourism (supply vs. demand)
- Language (of promotion and legal issues)
- Season length / time
- Costs of water/electricity/gas/internet
- Public transportation (especially to/from the airport)
- Possibilities of activities
- Niche specialization, like scuba dive hostel, surf hostel, etc.
- Budget airlines/transportation serving the city or region
- Employment laws
- Price to rent/buy property
- General safety and perception of safety in the area
- Investment by big hotel chains
- Zoning laws
- Do I like the place? (I have to sell it to the travellers and I can not succeed if I dont like the town/village/area... If I like it I can sell it)
- Tax rates
- Licensing issues/complexity
- Nearby conveniences (shops, bars, restaurants, attractions, transport) that make for a "good" location
- Rating per OTA with number if reviews. You can even make a detailed by category.
- The situation with AirBnB in the area
- Calculate the return on investment based on Off season and season time
A big thank you to Juliana Nogueira, Beata Baltavari, Lvi Borba, Omer Bogger, Ophir Morad, Juan Velazquez Correra, Cathrin Eszbach, Michal Smolenski, William Cass, Lyuba Sorokina, Kamaleshwaran Ketheeswaran, and Arthur Aloha for your contributions to this list!
What else do you think should be considered?