The hostel sector is experiencing significant growth, driven by evolving preferences among travellers whose priorities are shifting. But what can a property management system (PMS) do to support the efficient running of hostels?
Hostels are experiencing a time of exciting growth. Projected to grow by 6.5% up until 2030, the global hostel market size will be worth $11.04 billion by 2030.
Previously seen as an accommodation option mainly for students and backpackers travelling on a shoestring, opinions are starting to change. As travellers are beginning to value experiences more than anything else, the idea of staying in a hostel with shared social and coworking spaces and high-speed Wi-Fi is becoming more appealing.
Many hostels have been well-placed to deftly implement sustainability practices such as renewable energy sources and supporting local economies – appealing to eco-conscious travellers. In fact, 75% of travellers say they want to travel more sustainably in their forthcoming trips, so this ties in directly with guest priorities.
And with millennials and Gen Z travellers particularly watching their spend as day-to-day expenses increase, hostels tick a lot of boxes.
With the market growing around them, hostel owners and managers need to start thinking seriously about how to grow along with the trends. Technology could be the helping hand needed to improve efficiency and the guest experience. Here’s how.
PMS functionalities that make a difference
A PMS is not just for hotels – the technology works perfectly for a hostel setting too. In particular, a PMS such as SIHOT.PMS can automate a number of otherwise time-consuming tasks, such as managing reservations, updating availability, and recording check-ins and check-outs. Given the lower levels of revenue generated from bookings in hostels versus hotels, this is a great time-saver for staff, meaning efficiency is maximised.
As well as the management of reservations, a PMS can also help to streamline other operational tasks around the property. This includes managing maintenance and repair tasks, enabling hostels to log and assign maintenance tasks to the relevant teams quickly and easily.
Guest communication is another key area that a PMS can help. Emails can be automated to guests confirming their bookings and including upselling options they could add on. After their stay, automated emails can be sent to collect feedback, and to nurture loyalty through offers for future stays. Elevating the communication with guests improves the guest experience, and helps you maximise the future potential of the hostel too.
Hostel-specific PMS functionalities
There are also some aspects of running a hostel that differ from hotels, so it’s important to look for a PMS that recognises this. PMS modules such as SIHOT.BEDS enable the management of specific beds – not just rooms. This means individual beds can be booked and assigned according to certain criteria, such as gender, or group bookings being put together.
Given the added complexity of booking out individual beds in multiple rooms, SIHOT.BEDS has a room rack view for hostel staff to easily gain an overview of arrivals, departures and in-house guests. Changes to allocated beds can easily be made through a drag and drop functionality.
Managing multiple hostels
For hostel chains, a PMS can also support the slick management of multiple properties through modules such as SIHOT.MPE. With the same technology applied to all hostels, central teams can view and manage reservations from one place, while individual hostels can use the same system to manage daily operations.
This functionality has made a huge difference to Jugendherbergen hostels in Rhineland-Palatinate and Saarland, which has 42 hostels in the region – popular for family trips, school trips and conferences. Before implementing SIHOT products, the hostel group wasn’t able to show live availability and offer instant booking on the website, which caused a lot of administration time. After implementation, future guests could search and book immediately, while the assignment of rooms and beds was taken care of in the background. Future guests can now also search for availability across all 42 properties, meaning large groups can immediately see which properties can accommodate them.
Having a connected system also means there is one, consolidated guest database. This gives hostel groups the ability to nurture guest loyalty, highlight accommodation options across the hostel group, and send post-stay offers or voucher codes to be used at any hostel in the group.
With benefits at both the property-level and at the centralised, head office level, managing multiple hostels through a single system can be a way to maximise business opportunities in the growing hostel market.
Contact SIHOT to find out how our technology can help manage your hostel business.