15 years
All hostels are motivated by profit to some extent. I don't know anyone who willingly runs their business at a financial loss.
The idea behind HostelManagement.com is that hostels should work together and cooperate with each other in order to make the industry stronger. Even when a city becomes over-saturated with hostels, there are good hostels and there are bad hostels. I picture good hostels working together and bad hostels either getting it together or going out of business.
In my opinion, the biggest threat to hostels isn't the competing hostels -- it's "no backpackers in your city". Hostels should work together to make their city a great, friendly place to go hostelling.
You are right with the last point, that the biggest threat is that there aren't backpackers in your city. Also the point that hostels should work together is right. Sure, hostels don't willingly run their business at a financially loss, but what a lot of hostel owners don't seem to have is a proffesional handling of their business. I worked a lot of years as a travel agent for a big company and had through that a lot of contact with hotels, resorts, airlines and big tour operators etc. Each business of these do a lot to get new customers/sales. A bit of that is missing in the low budget branch, just like the example which Hostel Office gave you about how much more profit each hostel owner could gain, just with bookings via the own hostel site. No one here responded to that bit... that's strange! Here again the post:
One of these hostels is a 50 bed hostel saving 600 euros a month by gaining bookings direct and not losing 10% to agents. So for a 100 bed hostel it can be expected to increase profits by at least 15,000 euros a year by working on your website.
Now imagine what would happen if there is a chance to get even bookings via other travel portals with NO commission!
Sure, hostels shouldn't be handling their business like a resort, that wouldn't fit them and backpackers aren't looking for that atmosphere. I also think that the change to just please the shareholders isn't the right way. Keep it personal with atmosphere, that's what the independent traveler wants.
I've had many discussions with hostel owners the last months and most of them were annoyed about the way they were treated by hostelworld, hostelbookers etc.
I've posted before that I wonder that in the hostel branch you still have to pay 10% commission. I'm a backpacker myself and think that it has nothing to do with the low budget traveling branch. I know that it can be handled otherwise and opened because of that my plattform for accommodations, where you can present your hostel for free with a great service like phone number, link, mail etc. Further on, I posted that I'm open for further development and asked what kind of service would be liked of a hostel site of view. I got no answer yet and I wonder again what the problem is. My website is there to help other Travelers. A part of that is to give a cheaper alternative than the commission system. Why? Because prices could be lower and travelers would then profit of it & hostel owners would still save money.
And with that we are at the post:
From all the hostels I have seen and met 99.9% do not make a basic effort to prevent loss of business. So they may not be running at a financial loss but they as good as all do not do the basics to gain the business they deserve.
Yes, you are right. A lot of hostel owners are complaining and if you give them a fair alternative and a chance to change it, what happens... nothing... at least for a long time. Sorry, I just don't get it. I could also easily enter a html booking code from HW on my site to be a part of the commission system. But that's not why I'm running the site, so I won't do it yet, as I'm still optimistic to succeed with my concept. The positive feedback of the many partner accommodations & travelers show also that I'm on the right way. So I keep offering a free presentation & if there is need for a non-commission reservation system (front- & backoffice) with no yearly charge... incl. the possibility to get bookings on other travel portals with no further work to update beds on these sites... if this might be a solution for you... please get in contact with me.
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