1. Hostel Point can increase your sales and profit
Research from the Cornell University School of Hotel Administration shows that online ratings directly impact hospitality sales: on average, “1% reputation improvement in the Global Review Index leads up to a 1.42% percent increase in revenue per available room”, so we estimate that for example a 10% increase in ratings leads up to 14.2% increase in sales and a 20% increase in ratings leads up to 28.4% increase in sales. Millennials represent over 70% of hostel travelers and they value experiences more than a desirable product; consequently, even if a hostel has amazing facilities, they may give it a low rating if they didn’t meet the right people. In the same way, millennials may give a high and glowing rating and review to a hostel even if the facilities are poor, if they had the experience of a lifetime because of the people they met.
All online ratings are very influenced by the hostel “atmosphere”, which in the case of HostelWorld represents over 14% of the hostel rating. For example, let us assume that a hostel has a rating of 7.5 and an atmosphere of 7.5 in HostelWorld. If Hostel Point helps this hostel increase the atmosphere to 9.6 points resulting in a final rating of 7.8, and assuming that HostelWorld rating is the Global Review Index, then this hostel would increase its Global Review Index by 4% which would lead to an increase of sales of almost 6% without any extra expense.
In addition, consider that the desire for social experiences doesn’t depend on seasonality; therefore, your hostel could leverage a competitive advantage all year long.
Your hostel can as well increase sales of complementary products: Complementary products are tours, meals, drinks and anything else that your hostel sells to your guests, other than bednight stays. Gallup, Inc., an American leader in research-based, global performance-management consulting, indicates that “When businesses can provide the meaningful experience their customers want, they realize greater rewards in terms of loyalty and profits” and that “Fully engaged hotel guests spend 46% more per year than actively disengaged guests spend.”
2. Don’t be the hostel in your city not using Hostel Point
As more and more hostels join Hostel Point and increase their bookings, less innovative hostels that are not using Hostel Point in the same city might start seeing a decrease in bookings since guests would choose more frequently the hostels using Hostel Point. In the long term, when all hostels in one city join Hostel Point, the whole industry would have an increase of guests as world travelers are attracted by better social experiences and better ratings and reviews.
3. Hostel Point helps you engage more efficiently with your guests
Do you recall how many hours you spent answering the same exact questions to your guests, preparing those event flyers or completing that corkboard? With Hostel Point online lobby your hostel can send real-time notifications and announcements to all your guests, reaching out to your guests in a more efficient way. For example, if you are offering a happy-hour then simply send the announcement “Happy Hour from 7pm to 8pm at our bar! See you there!”.
Outreaching guests through the Hostel Point online lobby can help your hostel reduce current costs and time dedicated to social engagement and marketing.
Help your guests get the social experience you promised them when they booked your hostel: Your guests booked your hostel expecting to meet other people and have a great social experience, but currently guests meet other guests in your hostel by chance, only if they cross paths in the room, in the lobby or during some activity organized by the hostel; however, the odds of meeting someone by chance are low. For example, if someone crosses by chance 5% of other guests at the hostel, starts a conversation with 50% of all the people they cross, and share like-minded interests with 10% of the guests, then, the probability of meeting a like-minded hostelmate is only 0.5%. If a hostel has less than 100 guests, then a guest would most likely not meet any like-minded guests; consequently, the value proposition of your hostel is seriously undermined. Using Hostel Point, your hostel helps guests to highly increase the chances of meeting each other by allowing them to know other guests who will be in the hostel before they arrive and during their hostel stay. When guests know and communicate with the other guests who will be in the hostel before they arrive, they can plan in advance and make sure not to miss any great experiences such as a party happening the night of their arrival.
4. Your guests can feel safer by knowing someone else in the hostel before they arrive.
Guests can reduce the stress of uncertainty of their future hostel experience in a totally unknown city/country. Particularly appealing for solo and female travelers, having contact with a future hostelmate prior to arrival provides security and comfort to improve their hostel experience. For example, if a solo American girl traveler visits Rome and gets in touch with another American girl who will be in the hostel when they arrive, this can greatly enhance their travel and hostel experience. Traveler safety is often achieved simply by guests looking after each other. This hostel guest feature of Hostel Point can encourage more people to travel, reducing their traveling fears of unsafe or negative experiences.
5. Hostel Point is free for you and your guests, and there’s no extra work for you
It’s free. Your hostel has nothing to lose by trying Hostel Point.
How it works: Guests receive an automatic email to join your Hostel Point online lobby when they book, and they sign up by themselves, meaning that your social community keeps running automatically without the need for your hostel to do anything else.