Adjusting, Developing, and Innovating to Remain Competitive in Hostel

This report delves into the hostel industry, tracing its origins back to Richard Shirrmann's concept in 1909 Germany and highlighting its evolution into a budget-friendly social hub for travelers. It contrasts hostels with hotels, emphasizing differences in accommodation styles, costs, and social experiences. A key focus is on innovation, exemplified by the integration of bike rental services with guided tours, assessing its potential for value creation and brand awareness. The report analyzes the risks associated with this new product development using the Ansoff Matrix and underscores the importance of reliable suppliers and investment protection through insurance. Ultimately, it suggests that this strategic move can attract customers and enhance hostel traffic, offering valuable insights into competitive strategies within the hospitality sector. Desklib provides access to similar documents and solved assignments for students.

Running head: CONCLUSION
Conclusion
The above discussion is based on the hostel industry which was at first conceived in
Germany by Richard Shirrmann in 1909. Hostel is a kind of social hub that enables an individual
or group to enjoy with other travelers in a budget friendly accommodation facility. The concept
was formed after the creation of wandering school in the weekends for the students to stay while
in the field trips. This movement influenced other clubs, wealthy patrons and local communities
that resulted in the establishment of more than 2000 hostels with over 4.5 million overnights
annually.
However, there is a difference but not such huge between a hostel and a hotel. The rooms
are different where as in hostels there are dorms for both female, mix and male accommodation.
The hotels offer rooms and the hostels offer beds. hostels cost a less as compared to hotels.
Hostels offer less privacy than the hotels. Hostels facilitates the solo travelers, people seeking for
social interacts and new found friends. The smart move on of the hostel is combining beds with
bikes. The bikes will be offered to the guests with guides. The 30 bikes costing of £200 are
bought for the business purpose and the bicycles to offer rides. It is also concluded that our
product will be highly offering value creation objectives among the customers. Likewise, it will
offer beds and bikes to the guest where as the bikes service will be provided to the customers for
the organized trips with guides to different places in London. This bike service will add on cost
for the guest along with widening the opportunity for the organization as if in lean seasons the
bikes can be served as a mode of income and with the logo in it will promote to brand awareness.
The discussion also shows a detailed analysis of Ansoff Matrix to understand the risk
element of smart move on. it was observed that the business is working on the product

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CONCLUSION
development factor where the product introduced is new to the existing market. For the business
it is important to understand that the suppliers it is getting connected for its operations has to be
liable. They can be small suppliers or big suppliers. In addition, to it the kind of products is to be
chosen is important for the business.
The discussion also shows a feasibility study on the smart move on of the hostel which is
combined bed and bikes facility. In this case, the maintenance and the storage of the bikes are
necessary where it is obvious to protect the bikes and maintain them with the services like oiling
and servicing in the service centers with fixed period. There is a significance of protecting the
investments with proper insurance plans including the fire, theft or other eventualities. The
security factor will be pushed in the segment of offering physical protection in turn to lower the
high financial investments. It can be viewed that the customer will be attracted with this strategy
and hence the hostel will enjoy a high traffic in its guests.