nick thomas
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Adventure & Backpacker Industry Conference - Sydney 5/11/09
Adventure & Backpacker Industry Conference - Sydney 5/11/09
Adventure & Backpacker Industry Conference - Sydney 5/11/09
Hostels & Bars
• 13 Hostels• 12 Bars
Adventure & Backpacker Industry Conference - Sydney 5/11/09
Hostel Strategy
• Beds & Bars• Modern, clean, safe, friendly, social,
innovative, “experiential”. • Accommodation options from dorms to
privates with en-suites.• Beds in all major destination.• Customer reuse – keep them in the network
& leverage spending.– NZ is complete– Australia expect to add 4-5 properties in next 2 years
• Work with other like-minded hostels to “fill in the blanks”.
• Develop e-commerce solutions and sales tools to increase distribution.
Adventure & Backpacker Industry Conference - Sydney 5/11/09
Hostels
Adventure & Backpacker Industry Conference - Sydney 5/11/09
Hostel Challenges
• Profitability• Demand
– Arrival numbers– Govt. policy– Cost of generation– Stagnating core markets– Economic environment– Currency– Market attraction
• Quality vs. Cost• Oversupply• Price discounting• Low end hotels moving into backpacker space
– More choice – private rooms– Concentrate on the social environment
• Driving economies of scale & operational consistency• Not “over corporatising” – retain authenticity• Fixed vs. variable cost structure• Future development• Strategic supplier relationships• Customer communication
Adventure & Backpacker Industry Conference - Sydney 5/11/09
Hostels – The Future
• Fragmented market – further consolidation• Chains & good owner/operators in specific
destinations• Increasing customer quality demands• Increasing focus on the hostel/travel experience• Increasing need to cater to “non-traditional” markets• Property valuations vs. returns?• Increased cooperation between all parties
Adventure & Backpacker Industry Conference - Sydney 5/11/09
Travel Shops
• 30 shops in Australia & NZ (11 within hostels)
Adventure & Backpacker Industry Conference - Sydney 5/11/09
Travel Shops - Strategy
• New relevant brand• One brand• Clear customer proposition• Leverage hostel customers• Rationalise product• Increase staff productivity• Automation & efficiency
Adventure & Backpacker Industry Conference - Sydney 5/11/09
Travel Shops - Challenges
• Sales volume + low transaction value• On-street cost• Complexity + inefficiency• Staff turnover• Supplier direct sales• Competition – low barriers to entry
Adventure & Backpacker Industry Conference - Sydney 5/11/09
Travel Shops – The Future
• Fewer retailers!
Adventure & Backpacker Industry Conference - Sydney 5/11/09
• Questions