Every fortnight, we give you a run down of the latest hostel industry news and offer our insight.
MAD MONKEY HOSTELS SEND OUT BOOKING.COM WARNING
This week, Mad Monkey Hostels’ CEO issued a warning to other hostels about Booking.com’s wholesaler approach.
Mad Monkey Hostels, one of Asia’s fastest growing hostel operators, have had their properties listed on other OTAs without pre-authorisation – and it has had a negative impact on business.
This is down to a wholesale agreement between Booking.com and the other OTAs who have been utilise Booking.com’s third party inventory, Booking.basic.
In an article on LinkedIn, Mad Monkey CEO Steve Vaile listed a number of consequences the company have faced as a result of the listings, including increasing customer acquisition costs and rising cancellations rates.
He explained: “Booking.com has now syndicated our properties on platforms that are not really relevant to our business or target demographic, cancellation rates are up as a result, customer satisfaction rates are down due to getting the wrong customer.”
Vaile goes on to advise hostels to re-evaluate Booking.com’s business impact and be sure to check key metrics. Have cancellation rates risen sharply at your property? Have you seen market share swing to Booking.com in the past six months? This will help you ascertain how your bottom line may have been impacted.
Speaking to a few people at booking.com but there seems to be widespread confusion as to if we can opt out or not.
Vaile is currently speaking to Booking.com, but says that there is widespread confusion as to whether hostels can opt out or not. He’s keen to hear from other operators about their experiences, so join in the conversation here.
TRIBE THEORY TIPPED FOR GLOBAL SUCCESS AFTER SECURING SEED FUNDING
Tribe Theory, a Singapore-based hostel startup, have raised a total of S$1 million (approximately $738,300) in seed funding from investors.
Designed to cater to travelling startups and the entrepreneurial community, the brand has grown quickly over the past year and now have properties in five countries – Singapore, Bali, India, Myanmar and China.
Set to use this fresh funding to expand further, Tribe Theory aims to be in 25 countries across the world within the next four years. They will open next in Estonia, Kuala Lumpur and the Philippines.
They are also planning to launch Tribe Theory Academy at their Startup Village in Bali where travellers can join up-skilling programmes in areas such as digital marketing and web development.
With slick facilities, valuable networking events and a community feel, Tribe Theory is a best practice example for other hostels looking to cater to the growing digital nomad market. We’re certainly looking forward to seeing their growth over the coming months.
ABRAHAM HOSTELS SECURE SUBSTANTIAL FUNDING FOR EXPANSION
Israeli hostel chain Abraham Hostels and Tours Holdings Ltd have secured a $6.93 million from Bridges Israel, an independent affiliate of London-based Bridges Fund Management Ltd.
Since opening their first hostel in Jerusalem in 2010, Abraham Hostels have gone from strength to strength. They have opened additional locations in Tel Aviv and Nazareth and launched their hugely successful tour company, Abraham Tours, which has made them the largest tour operator in Israel.
With this new investment, Abraham Hostels plan to open additional locations in Jerusalem, Eilat and in the Dead Sea area as well as locations outside of Israel over the next few years.
It’s an interesting time for the Israeli hostel market. Selina are opening a Tel Aviv property this summer and plan to provide between 5000 and 7000 beds in the country within the next five years. With a record 4.4 million visitor arrivals last year – an increase of 13.6% compared to the previous year – it’s also a promising time for tourism in Israel more generally.
HOSTELS GET SOME SERIOUSLY GOOD PRESS IN THE NEW YORK TIMES
In an article that goes a long way in tackling negative perceptions of hostels, The New York Times latest feature lists tips and advice for newbies to the hostel world.
Staying in over 100 hostels across six continents, Journalist Geoffrey Morrison has done his research. He said: What if I told you that for the majority of the last five years I’ve traveled all over the world, and in that time stayed at some of the most incredible places … that just happened to be hostels? That I’ve met dear friends and adventurous companions, all while paying a fraction of what a hotel would charge?”.
Describing what travellers can now expect in a hostel, Morrison discusses the set-up of a dorm, the different room type choices as well as negating any fears about security.
Explaining how and where to book a hostel stay, he says, “The pictures tell a story, directly and indirectly. These sometimes go beyond the description and inform you what staying there will be like.” This once again proves how important it is for your hostel to have high-quality, professional photos on both your website and OTAs in order to give a good first impression. Poor photography will lose you bookings.
This article is a really valuable mainstream piece which will very likely have been read by travellers who may still have a negative perception of what hostels are like and will go a long way of changing public opinion.
We also enjoyed this bit of advice he shared: “Also, and this is a personal pet peeve, don’t use plastic bags in your luggage. The loudest sound in the universe is someone packing their belongings into plastic bags at 5 a.m.”
We’re sure many hostel guests agree…
Check out the full article here.
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