Travel accommodation goes beyond luxury resorts and charming boutique hotels. As more young adults hit the road, budget accommodation is growing in demand. We’re talking reasonable rates – between Rs 500-1000 per night. Here’s where hostels come into the picture.

In India, the word hostels is most often associated with student accommodation featuring the bare minimum. It’s only with the growth of global travel that safe, friendly, reliable and cheap accommodation is becoming popular in the country. For example, in just six years, goStops grew to 13 hostels in north India with an annual turnover of Rs 10 crore. 

Here are a few tips on running a value-for-money hostel that’s profitable.

GOOD LOCATION

Choosing a spot that is both close to places of tourist interest but is not shared with too many competitors can play a big role in the success of a hostel. If you have chosen a more remote location, consider offering a free or highly discounted daily trip to the tourist hub to attract travellers. Avoid areas with dangerous reputations.

DEFINE YOUR DEMOGRAPHIC

Understand who you are catering to so you can tweak services accordingly. Hostels aimed at younger travellers can incorporate a more high energy vibe with parties, free coffee or tea, and organised club hops. Those for slightly older guests or those located near national parks might focus on yoga sessions, reading corners, fantastic views, adventure tours, etc.

CLEANLINESS IS KEY

A major pain point with cheap accommodation, particularly in India, is poor hygiene. For the young global traveller, a spotlessly clean hostel in a safe neighbourhood will always be a top contender. With high turnarounds, laundering linen often can get expensive, but it’s always worth it. Highly sensitive areas include bathrooms and communal kitchens, and it’s a good idea to schedule pest control initiatives at regular intervals.

FOCUS ON USPs

Hostels located close to tourist hubs need to set themselves apart from the competition. Focus on your strengths and work from the view of your target demographic. Think of interesting ways to keep the ambience conducive to them and be proactive in organising events that encourage socialising – it’s one of the reasons why hostels are popular.

ADD-ONS FOR REVENUE

Hostels may be cheap but many turn profitable through various add-ons. Dorm rooms are usually the norm, but a few slightly more expensive private rooms can attract travellers with deeper pockets too. Other avenues of revenue include hiring out towels, charging for laundry or pre-paid washing services, bike rentals, and in-house eatery or bar, etc.

MARKET YOURSELF WISELY

Use social media to its full potential. But it can also help to be active on travel forums, connect with travel bloggers and find local businesses to partner with such as co-working spaces or startups for long-term stays. Get in touch with people professionally engaged in the interests of your target audience – art groups, language schools, musicians – to cater to in-house activities while expanding your circle through valuable word-of-mouth recommendations.