I heard somewhere that an occupancy rate of 80% and higher is not uncommon. Also that occupancy below 60% is quite unlikely.
My question is what is the typical range of occupancy rates that you guys experienced for the four seasons of Fall (Sept. 16- Nov. 30), Winter (Dec 1- March 30), Spring (April 1-June 30) and Summer (July 1 – Sept 15)?
15 years
I heard somewhere that an occupancy rate of 80% and higher is not uncommon. Also that occupancy below 60% is quite unlikely.
I think it depends a lot on the location and the hostel. I know of some hostels that are practically empty at the moment, and others that are doing well...
15 years
I think it depends a lot on the location and the hostel. I know of some hostels that are practically empty at the moment, and others that are doing well...
I agree with this. However the 4 divisions of the seasons with those dates is not accurate. Maybe it applies to some places but in places like Rome or Sicily, "summer" season can continue even into October, whereas the first high point of the year depends on the date of Easter or other major festivals.
15 years
The only thing to do is to research the destination concerned, and make sure that any business plan is realistic based upon your figures. It's no good finding out what the figures are in another country or even city. I've seen cases where start-ups have based their finances on silly figures, and then had difficulty because of this. The main problem is that if you are operating at a really high level of occupancy for a while, there's a good chance competition will come and trim your bednights significantly.
15 years
The only thing to do is to research the destination concerned, and make sure that any business plan is realistic based upon your figures. It's no good finding out what the figures are in another country or even city. I've seen cases where start-ups have based their finances on silly figures, and then had difficulty because of this. The main problem is that if you are operating at a really high level of occupancy for a while, there's a good chance competition will come and trim your bednights significantly.
That's life!!
15 years
I think it depends a lot on the location and the hostel. I know of some hostels that are practically empty at the moment, and others that are doing well...
Regarding the location, do you mean location in the world or the quality of location in your city?
The main problem is that if you are operating at a really high level of occupancy for a while, there's a good chance competition will come and trim your bednights significantly.
Very smart point! Good job!
9 years
Suppose there is a newly opened 40 bed hostel in a 300-320 sq m space in central/ busy district(s) of Prague (I & II), Czech Republic. It provides all the facilities at very competitive rental rates plus has nice clean comfortable surroundings with all amenities that a good small sized hostel can have. No corners were cut to provide decent and comfortable facilities to the guests. Free beverages (hot & cold), FREE: towels, hair dryer, soaps etc. Laundry from customers charged minimally, bed-lamps, entertainment system, PCs, wifi, lockers, baskets, privacy curtains, the works...
That said, can anybody having hostel experience, in Prague, CZ, give me any idea of what can be the occupancy level of such a place in that location in the said city in the first year. Can it be possible to have 35% occupancy in the first year's winter (4 months) and around 63%-64% occupancy in that year's summer (8 months)
Thanks//
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