Do's Hostel Owners Must Know!
Hostels are something that has been super appealing to so many people out there, especially the Gen-Z. Be it Hostels in Goa, Panchgani, etc. there’s something exciting about it. Community feeling? Yes! Backpacker vibe? Yes!
Now talking from the owner’s point of view, sure this is a great way of generating revenue. But just like any other business, there are things that you as the owner need to know or be prepared for. Just like any other business, unexpected things can happen!
What are they? Here are some of them below.
The Location -
How significantly important is this for the hostel to flourish! The location you’re based at affects the number of guests that are going to walk into your hostel. Even if you’re doing great, not having facilities around like the train station or the markets close by could really put a dent in the number of potential guests.
Laws and Permits -
Important! These have to be considered and must be abided by when making any business decisions. The cost and the process of regulations could take a long while and could land your hostel business in trouble if not followed or solved. The same goes for permits. No business without them. Whenever opening a hostel, know the safety inspectors or officials at your local government office and make sure that there’s no reason for them to find that you’re violating any of the permits Remember, losing threats is losing your hostel.
Hostel Expenditure -
To give the owners some credit, they do calculate and analyze the expenditure of their businesses. However, a portion of these owners don’t calculate all of the possible expenses. To put it in an easier way, many of these go unnoticed. The high government/city taxes, the added expenses, the costly utilities needed for the place, etc. Note to yourself, things aren’t easy monetary-wise, do your math before starting a hostel!
Keeping A Track -
Keep a check and update your books. Cataloging your revenues and expenses helps you keep in check of how much revenue your hostel is bringing in. It’ll make life easier for you as the owner to have accurate records of revenues and expenditures. It’ll also help you in planning your hostel’s expansion if you ever plan for it!
Using A Property Management System -
The PMS ( Property Management System ) is an absolute lifesaver! Without it, you would just be sitting in front of your computer system, absolutely dreading life! Property Management Systems in hotels and hostels are a must in this day and age. PMS will help you avoid overbookings, keep a tap on the guests that have paid, who’s about to check-in and also help you set the rates for your business. There are several options available out there and as mentioned above, a real lifesaver!
And there you have it! These are a few of the absolute must-dos for every hostel owner out there and those aspiring to be one. What do you think? Is there another way to look at it? Comment and let us know.