Business idea: opening a hostel in Russia
Tourist business in Europe is very well developed, in Russia only in recent years they begin to understand that the development of tourism brings considerable funds to the treasury. Suffice it to recall how in the past decades, new routes to historical places were opened. With the development of market relations, it became possible to radically change the structure of the tourist business. Europe has long understood that to enter the tourist business at the least cost, it is necessary to open hostels. So, what is a hostel, how to open it, and what differences does it have from an ordinary hotel.
What do I need to open a hostel?
The first step is to choose the place where the hostel will be built or hosted. Usually for these purposes use places where there is high traffic, and you are sure that visitors will always be. For example, for many cities where sports are held, it is necessary to provide a place for fans. By the way, Russia, which will become the hostess of the World Cup in football, will require the availability of such institutions in the near future. Fans and tourists with an average income, are the main guests of such institutions. The main conditions for the hostel, it is impossible to occupy the basement and basement floors of buildings. In the hostel it is necessary to provide all the parameters of fire safety. Stairways and emergency exits must meet these requirements first.
What can I recommend for opening a hostel? You can use for these purposes three or four-room apartment, if you plan to place a small group of guests. If you need to provide accommodation for a large group of guests, think about the hostel or a similar building. In any case, whatever room you would not use for the hostel, do not forget to bring all the documents in the appropriate form, otherwise you will suspect a «stash» … No, there are almost no such situations, but it’s better to protect yourself hundred times than get into awkward position!
In each room of the hostel you can provide accommodation for guests in the number of 4 to 12 people. Must have a hostel in the room for eating, a sanitary unit in complete configuration. Remember, a bathroom, and the kitchen should be equipped with the latest technology, otherwise it will be a usual hostel institution. About the sanitary unit it is necessary to note the following, the technical carrying capacity of one sanitary unit should be calculated for 10-15 people, no more, sanitary norms demand it.
The administration in the hostel should be savvy. In the state of the hostel there should be at least 2-3 administrators, it is desirable that the administrators speak English, at worst they can speak German, French, Spanish or Italian (although recently they also appreciate Portuguese, Hindi and even Chinese with Japanese). Most importantly, do not forget to bring all the hostel’s documentation in order. With a strong desire, you can buy a ready-made business, from you there is only just competent management of the staff of the establishment and a competent advertising feed.
What are the financial costs to open a hostel?
Financial expenses are typical for any form of activity, including for opening a hostel. You have matured a business idea to open a hostel, and you are already beginning to convulsively calculate the costs and costs, remember, the following tests of the financial plan are waiting for you:
• Possible costs for renting a room (if you do not plan to build a building specifically for the hostel)
• Repair of the premises. In any case, all the premises of the hostel will have to be brought to the proper view, and in accordance with all the norms of the sanitary and fire prevention plan.
• Purchase of necessary equipment for living. To leave a good impression and in the future attract customers, it is necessary now to take care of the purchase of quality and modern equipment for living in the hostel.
• Purchase of beds. We need to pick up such beds, so that none of the guests expresses a claim that he «did not get enough sleep» this night due to the fact that he did not watch the football of his favorite team …. Seriously, think over different beds, for possibly different in the configuration of the guests.
• Hygiene products. Bed linen and personal hygiene products should be for each guest individually. It must necessarily provide for, otherwise, the surveillance sanitary departments will close your institution right now.
• Salary of employees. Here you need the flexibility and talent of the manager, who must predict in advance what can be expected from the administrators. If they have the talent, and they can find a common language with the guests, they will have to increase the monetary allowance. In any case, plan the amount that you provided, in the future you can adjust the salary to the best administrators.
Advertising is the engine of the success of the hostel
Without advertising you can not escape, advertising is not only your advertising engine, advertising, it’s your daily bread, which will remind you of yourself all the time. You can submit advertising yourself in all available media, or you can use popular services that are designed for hostels, such as booking.com, hostels.com, hostelbooking.com .. By the way, these services charge a certain commission for placing your advertisement — from 10% to 20% of one number. How to work with these services is up to you, but without advertising today you can not go anywhere.
Is it profitable to open a hostel today?
The hostel will probably be the leader in the hotel complex for a long time, thanks to the low price category. As practice shows, those who opened their own business on this idea, earn good money. Estimated, if you conduct a competent advertising campaign, then the occupancy of the hostel rooms will make up to 75-80% in the period of calm. In the period of mass demand, occupancy can reach 100%. Please note, for a Russian tourist, the hostel is more of a curiosity, probably because of a foreign word. With foreign tourists, hostels are very popular, so you may have guests not Russians, but rather foreigners.
To open or not to open a hostel is your business, but, sooner or later, the tourist business will face the need for cheap rooms, and the hostels in Russia are not yet very developed, and more are in the embryonic state.