Marketing research on opening a hostel

Marketing research

Opening a hostel can be the first step towards creating a whole network of mini-hotels and getting impressive amounts of profit. The hostel business idea is one of the most promising for further development.
However, for the successful implementation of this idea, it is necessary to do a preliminary study and calculate all possible costs in order to bring the business to profitability from the first days of its existence.
First of all, you need to evaluate the location of the mini-hotel. We proceed from the fact that you already have a room for opening a hostel:

  • if the premises are located near railway stations, metro stations, business centers, higher educational institutions — this is an ideal place for a constant influx of customers;
  • if the premises are located in a residential area, there is nothing to worry about either, you just need to spend more effort on informing potential customers.

The initial costs of opening a hostel include the costs of transferring premises from residential to non-residential, although they are not so great. But the re-equipment of the premises may require significant funds, since it is better to do it right right away than to redo it later, losing money due to downtime.

When equipping the premises, it is necessary to take into account the sanitary requirements for the accommodation of guests: at least 5 square meters of living space per tenant, at least one toilet bowl for 12 people, at least one washbasin for 6 people and at least one shower stall for 15 people.
If an ordinary city apartment is equipped as a hostel, then these requirements are easy to fulfill.
When carrying out repair work, it is better to immediately use high-quality building materials, since they do not live in hostels for a long time, therefore, the turnover of customers will be high and all equipment must be wear-resistant.

In the initial costs, it is also necessary to plan the purchase of furniture, bed linen, air conditioning systems, household and kitchen appliances (refrigerator, washing machine, hair dryer, iron, TV, kettle, microwave, etc.).

It is also necessary to connect cable TV and wi-fi, as there are always many business travelers, students and young travelers among the clients of hostels.
When conducting market research on opening a hostel, you need to take into account the ongoing costs, which may not be so small.
In current costs, you need to take into account the costs of utilities, household chemicals, laundry, minor repairs, cleaning services, staff salaries if you cannot cope on your own. However, with small volumes of this business, as a rule, the owner himself is able to do most of the work, so saving on wages is a significant advantage of this type of business.
It is also necessary to plan a certain amount of expenses for advertising your hostel, since it is it, especially at the first stage, that will provide you with an influx of customers and income.

Experience shows that the cost of a small hostel can pay off within the first six months, but on our website you can order a more accurate calculation and business plan based on your specific conditions.

If you are planning to open a large hostel for 50-100 people, or take a loan from a bank, then you cannot do without a high-quality marketing research and preparation of a business plan. We are happy to help you with this.