After attending the American Hostel Conference last month, I gained great insight into the many types of hostels in the US, especially those opening up. Several attendees were in the process of starting a new hostel or had the dream to do so. The conference had some great presentations for both veterans and dreamers alike.
However it struck me during the fun side conversations that so much of the knowledge current owners and managers take for granted was valuable insight for these newcomers. Everything from “You can never have enough storage” to “If it can break, it will.”
So, in the spirit of sharing, I’ve gathered several responses to this question:
What is the first thing that comes to mind when you think “I wish I would have known ___ when I started my hostel”?
This blog could be miles long, so for now I am just including a handle of responses (keep an eye out for follow up posts!) I’ve grouped them somewhat together, and will be adding my own insight. I hope it’s valuable for everyone starting out.
I wish I would have known: Business
“Wish I would have known the basics of business ownership when I started my hostel. Accounting, budgeting, taxes, depreciation, assets, payroll, etc”.
-Grant Williams: Owner, Travelers House- Portland, Oregon
“Sensitivity of verbiage within Real Estate leases.”
-James Black: Owner, ITH Hostels
“All of the expenses, and doing better market research.”
-Chandler Stewart: Owner, Hostel Cat- Las Vegas, Nevada
If I had a dime for every backpacker that has come through the hostels I’ve managed and said “This would be so fun, I want to open a hostel too!” I’d never have to eat two minute noodles again. Having a fun hostel seems like every backpacker’s dream, but few really think about the reality behind it. At the end of the day, it’s a business not a hobby, and that means a LOT of details.
That’s not to say you shouldn’t give it a go even if you don’t have a biz background (I’d guesstimate that 90% of hostel owners don’t) but it also means to be aware of the journey ahead, and prepare accordingly.
I wish I would have known: Set Up
“How important it is to be eco friendly. From a business standpoint and personally. High efficiency utilities, water faucets, toilets, showerheads, electrical appliances, LED lights.
How important it is to over build your place and make it idiot proof.
How big of a fridge i would need!”
-Wolfie Shapiro: Owner, Mellow Mountain Hostel- South Lake Tahoe, California
“Getting an ATM.”
-Chandler Stewart: Owner, Hostel Cat- Las Vegas, Nevada
There is never going to be a perfect way to set up your hostel before you start having guests. They will use the space in ways different than you intended, or perhaps needs will arise that you hadn’t thought of or weren’t necessary at the time. That being said, planning ahead is also crucial so you don’t waste money unnecessarily.
For instance, having eco friendly appliances, showerheads, etc. not only saves you money in bills, but if you start with conventional options and decide to switch it’s going to be a huge added expense. Getting an ATM can be a great way to make residual income if your physical set up allows for it, and it makes sense based on your location.
I wish I would have known: Staff
“How valuable good staff are, and how hard it is to find wonderful management and keep them happy.”
-Wolfie Shapiro: Owner, Mellow Mountain Hostel- South Lake Tahoe, California
“Helping my staff be more informed through a formal training program with videos, and giving managers actual dialogues and examples of how to manage positively and deal with problems.”
-Chandler Stewart: Owner, Hostel Cat- Las Vegas, Nevada
Let’s get one thing straight- staff are a HUGE part of a successful hostel. If you have a spotless place with every amenity under the sun for a low price but you have staff that are lackluster or indifferent or unhelpful it will kill your guest’s experience. Same if they have not been trained well. Happy customer service only goes so far if they aren't doing their job properly. Finding good staff, especially management, can be really tricky so do what you can to keep them around! If you love and appreciate them, make sure they know it- both through feeling (support, positive feedback, etc.) but also through rewards, perks, or benefits.
I wish I would have known: Time
“How much time would be needed to deal with little nuisance problems that seem inconsequential but frequent.”
- Darren Overby: Owner, Pacific Tradewinds Hostel- San Francisco, California
“Automating as much as possible.”
-Chandler Stewart: Owner, Hostel Cat- Las Vegas, Nevada
“The importance of setting deadlines for myself so non-urgent work would get complete in a timely manner.”
-Courtney Loechl: Former Manager, Pacific Tradewinds Hostel- San Francisco, California (yes, this is me :-D)
There is never, never, never enough time for everything we want to get done. The hostel to-do list is never complete (said so here years ago!) and time gets eaten up by crap that really shouldn’t matter. Which can also cause projects to get drawn out for seemingly no reason because we just keep back-burnering anything that isn’t right in our face or a fire to be put out. It’s amazing when you finally go to sit down and complete something that’s been on the list for ages how short of time it may actually take you. Unfortunately finding those pockets can be a struggle between all the little stuff that comes up. As I wrote about here technology can help with this, whether automation or task management.
I wish I would have known: Operations
“That all of the annoying regularly recurring tasks actually help you stay on top of things and prevent problems.”
- Chadwick Kieser: Manager, Pacific Tradewinds Hostel- San Francisco, California
“That it involves so much cleaning.”
- Lee Balot: Owner, The Green Backpackers- Mizpe Ramon, Israel
I remember one time getting stressed out and pissed off when our vacuum cleaner wasn’t working and I was taking it apart, again, to fix it. Of course while I had 18 other things I meant to be doing. It was annoying but the reality was also that I hadn’t been keeping up on our preventative maintenance that I knew was required to keep it running smoothly. The lack of a 10 minute investment every week or so (which also could have been done by someone else) resulted in a couple hours of frustration later, as well as screwing up my schedule.
Cleaning is also something that can become compounded. We had one shower that was really humid and needed the tile scrubbed regularly. Done daily and it only took a couple minutes with minimal effort. But there I was one day, scrubbing off black mold with some serious elbow grease because it had fallen by the wayside by our cleaners for just a few days.
Remember: It is always easier to prevent a problem then fix one.
I wish I would have known: Personal
“That it will actually make me less social.”
- Lee Balot: Owner, The Green Backpackers- Mizpe Ramon, Israel
“Scheduling out or making time for non-hostel fun (or self care) is critical to avoid burnout.”
-Courtney Loechl: Former Manager, Pacific Tradewinds Hostel- San Francisco, California (yes, me again)
Many backpackers or otherwise who want to open a hostel have this dream because they think it will be cool to hang out with travelers all the time. It’s not to say this doesn’t happen butttt….holy burn out. Trust us when we say it will happen. There will come a time when you really don’t like being social all the time anymore. Or that you do, but you want that social energy to be spent with friends who don’t move on after 4 days.
When I first started managing several years ago I remember thinking that because I was being social with hostel guests when I wasn’t doing ‘work’, I had a social life that energized me. It only took a few months to realize that socializing with hostel guests- whether in the hostel or in the city- was NOT the same as doing something completely unrelated. It was often a blast, but would also leave me feeling drained, like I never got away. Take time for yourself outside the building (if you live on site), and/or with non-hostel people to help you avoid burnout.
While some of these may seem on the negative side, everyone I spoke to has also loved their businesses and experiences. There are negatives to every situation, but they are just part of the ride. Hopefully if you are thinking about opening your own hostel or actively working to do so you can learn from the rest of us and feel one step closer to success.
Good luck!
